Efficiency of Cryptocurrency in Current Market Place - Public Survey

This study surveys different types of cryptocurrencies and finds a useful regression model to understand the main drivers of cryptocurrency's value. The report focuses on understanding the value of cryptocurrency for share market traders and the role of peer influence in the ecosystem of cryptocurrencies.

Efficiency of cryptocurrency in current market place
(Public Survey)
FirstName Surname†
Department Name
Institution/University Name
City State Country
[e-mail]
FirstName Surname
Department Name
Institution/University Name
City State Country
[e-mail]
FirstName Surname
Department Name
Institution/University Name
City State Country
[e-mail]
ABSTRACT
In the present era of digitalization, the crypto-currencies are achieving enormous popularity
and credibility. Their overall process and market capitals of resources are gaining different
heights every time. Various financial institutions are coming on their way to developing those
technologies of digital currency. The dynamics of the market is useful to understand how the
situation is viable. In this report, an experiment is conducted on various students of marketing
at Australia. The survey conducted here focusses on understanding how valuable is
cryptocurrency for share market traders. Firstly, the background of the overall situation is
analysed. Then, a study is conducted and results are interpreted from the survey.
KEYWORDS
Cryptocurrency, share market, efficiency of crypto-currency, Bitcoins, Altcoin
1. INTRODUCTION
The cryptocurrencies are found to be gaining credibility and popularity. The marketplaces of
ypto-currencies are finding importance. Here, understanding the dynamics of the markets are helpful to
alyze, in what way the cryptocurrency ecosystems are viable and how the choices of design have been
ecting the behavior of the market. It is seen that one of the potential threats for cryptocurrencies is the
astic fluctuations in the willingness of traders to sell or buy [2].
Here, an effective experimental methodology is used for conducting a public based survey.
is is based on the efficiency of the innovation in the present market. This is helpful to understand how
e susceptible traders in the current markets are peer influencing from different trading behaviors of
yptocurrency. In the report, the background of the study is analyzed. Then the overall process of the
dy is demonstrated. Next, the results retrieved from the study are discussed here.
2. BACKGROUND
The crypto coins or cryptocurrencies are found to be gaining popularity in the present
rketplace. Here, the market cap and process of the resources are touching many highs with values
billions of U.S. dollars every day. They are presently being traded in crypto coins. Butenko et al. (2017)
ted that it is found that financial institutions are investing in developing the technologies of digital
rrency [1]. Further, the start-ups based on block-chains are thriving. As any alternation, the market
namics of cryptocurrencies rises, the increase in punctuated through a crisis. Simultaneously as the
ypto coins gain popularity, the rise is punctuated through crises. Hence, knowing the dynamics of the
rkets of cryptocurrencies are helpful to avoid and anticipate the further events of disruptions as per
ang et al. (2018) [3]. Here, an essential threat to the innovation is derived from the speculative nature
those resources. Various participants are found to be trading because they expect cryptocurrency to
se the value. This collective excitement has been leading to bubbles and thus resulting in market
shes. Here, the choice of design of the online exchanges where cryptocurrencies are traded has been
ntributing to the impacts. This might happen as the impacts of the present functionality, GUI or
aphical User Interfaces, API or Application program Interfaces are found to be promoting collective
citement. Kraft (2018) highlighted that these markets include human artifacts and not a natural
enomenon [5]. Thus it is considered as a target of designing. Therefore the current analysis strives to
derstand the factors better. This helps in studying how they have been contributing to the collective
periments in cryptocurrencies. As per Peters, Gareth and Guy Vishnia (2016), this design of
chanisms of crypto-currencies and interfaces has been affecting the processes [4].
Study
Here a cross-sectional empirical data survey is used. These are collected from various
rticipants one at a time. Here, the time is not seen as the study variable in the research design.
sides, every participant has not been providing data in the exact time. However, in one session, the
rticipants have been solving the questionnaire for some period [9]. Hence, cross-sectional data has
en nonetheless collected from respondents. This has been making the sample under a relatively shorter
d-period or time-frame. Further, the time is considered to the random impact, producing only variance
d not bias [7].
In this study, different types of cryptocurrencies are surveyed. A useful regression model is
found out. This denotes the main drivers of the crypto currency’s value. This is helpful to understand the
overall competition level. It has been occurring at the network of different producers, a rate of production
per unit and the complexity of an algorithm is used to mine the crypto-currencies [9].
At the core of the goals, lie the understanding why individuals have been deciding to invest
at a specific technology, idea and product and a particular time. As the resource of new and the
information about it are released, the investment has been a rational reaction to the current stage of
information. Additionally, the other factors involve authorities that have been endorsing the stake [8].
Further, big players have been developing noticeably huge bets on that. Next, another source of
hypothesized collective optimism is the peer influence taking place among various share-market traders.
Hence, knowing the endogenous peer effects of influence has become essential. Since the dynamics of
financial markets get profoundly affected by the help of small traders, various solutions are required to
stabilize the markets [10]. Hence, the peer influence has been playing a massive role in the ecosystem of
cryptocurrencies because of huge speculative kind of resources. As the universal intrinsic value of the
crypto-coins has been rising with the rise of levels of adoption, much of the trading become speculative.
Similar to the properties if various latest technologies, there is a huge deal of uncertainty with
cryptocurrencies. This has been eventually turning to be successful [12].
In this study, various students who are studying marketing at Australia are considered. Their
age is supposed to be below 25 years. Here regression results are utilized as the facilitator. The entire
series of related equations are formalized. It is done to calculate the units of cryptocurrency as a vital
producer [13]. Furthermore, the extrapolating model regarding accounting the average and regulating
values to aggregate the mining network for bitcoins. This indicates the model of production cost. It has
been approximating the market price closely for bitcoins against dollar values [11].
However, there have been some challenges regarding the determination of impacts of small
share market trades in the present financial scenario. Here, most of the responses of she students has
been retrieved from the analysing of observational data. However, this observational assessment is
subjected to various interpretations of confounding [14]. They are seen as evidence against various
traders who are engaged in entirely rational behaviour. This has been predicted by the working market
hypothesis. However, the correlations have been taking place because of overreaction and reaction to
different news events and due to the peer influences. The survey questions comprise of dichotomous
queries. Next, Likert-type scale is utilized here. At last some common questions are developed. These are
meant to be replied by the respondents in complete questions [9].

EFFICIENCY OF CRYPTOCURRENCY CURRENT MARKET PLACE
3. RESULTS
The analysis and results of the surveys are illustrated in the following table. The overall
rvey is done on students less than 25 years of age. Here, the contents of equations and selection of
rticipants are shown in the questionnaire of the appendix section.
Table 1:
Participants' feedback on the dichotomous queries
Participant Gender Question 1 Question 3 Question 5 Question 6
1 F No Yes Yes Yes
2 M Yes Yes Yes No
3 M Yes Yes No Yes
4 F No No Yes Yes
5 F Yes Yes Yes Yes
6 M No No No No
7 F Yes No Yes Yes
8 F No Yes No Yes
9 M Yes Yes Yes No
10 M No Yes No Yes
Table 1: “Responses to question 1,3,5 and 6”
(Source: Created by Author)
Table 2:
Response to question number 2
Participant 1 better than real currency
Participant 2 better than real currency
Participant 3 similar to real currency
Participant 4 worse than real currency
Participant 5 better than real currency
Participant 6 similar to real currency
Participant 7 better than real currency
Participant 8 worse than real currency
Participant 9 worse than real currency
Participant 10 better than real currency
Table 2: “Responses to question 2”
(Source: Created by Author)
Table 3:
Response to question number 4
Participant 1 similar to real currency
Participant 2 better than real currency
Participant 3 similar to real currency
Participant 4 worse than real currency
Participant 5 better than real currency
Participant 6 similar to real currency
Participant 7 better than real currency
Participant 8 similar to real currency
Participant 9 worse than real currency
Participant
10 better than real currency
Table 3: “Responses to question 4”
(Source: Created by Author)
Table 4:
Participants' feedback on the Likert-type scale
Participant Gender Question 7 Question 8
1 F Strongly agree Strongly agree
2 M Agree Neutral
3 M Strongly agree Strongly agree
4 F Agree Strongly agree
5 F Strongly agree Strongly agree
6 M Agree Agree
7 F Agree Strongly agree
8 F Strongly agree Strongly agree
9 M Strongly agree Agree

EFFICIENCY OF CRYPTOCURRENCY CURRENT MARKET PLACE
10 M Strongly agree Strongly agree
Table 4: “Responses to question 7 and 8”
(Source: Created by Author)
Table 5:
Participants' feedback on Question 9 the Likert-type scale
Participant Gender Question 10
1 F Definitely not
2 M Definitely not
3 M Probably
4 F Definitely not
5 F Probably not
6 M Probably not
7 F Definitely not
8 F Definitely not
9 M Most probably
10 M Definitely not
Table 5: “Responses to question 9”
(Source: Created by Author)
Table 6:
Response from question 10
Participant 1 Bitcoin
Participant 2 Bitcoin
Participant 3 Ethereum
Participant 4 Bitcoin
Participant 5 Bitcoin
Participant 6 Ethereum
Participant 7 Bitcoin
Participant 8 Ethereum
Participant 9 Marker
Participant 10 Bitcoin
Table 6: “Responses to question 10”
(Source: Created by Author)
Table 7:
Responses from question 11
Participant 1 Bitcoin
Participant 2 Not sure
Participant 3 Bitcoin
Participant 4 Not enough knowledge
Participant 5 Litecoin
Participant 6 First Bitcoin and then Stellar XLM
Participant 7 Ethereum
Participant 8 Bitcoin
Participant 9 Not sure
Participant 10 Bitcoin
Table 7: “Responses to question 11”
(Source: Created by Author)
Table 8:
Results of Table 1 Number of "Yes" Number of "No"
Question 1 5 10
Question 3 8 2
Question 5 7 3
Question 6 7 3
Percentage 55.00% 45.00%
Table 8: “Analysis of question 1,3,5 and 6”

EFFICIENCY OF CRYPTOCURRENCY CURRENT MARKET PLACE
(Source: Created by Author)
1 2 3 4
0
5
10
15
5 8 7 7
10
2 3 3
Figure 1: “Comparison of Responses (Red bar showing number of positive
response/Blue Bar showing number of negative response”
(Source: Created by Author)
Table 9: Results from Table 2:
Responses for better than real currency 5
Responses for similar to real currency 2
Responses for worse than real currency 3
Table 9: “Analysis of question 2”
(Source: Created by Author)
Responses for better
than real currency Responses for similar to
real currency Responses for worse
than real currency
0
4
Figure 2: “Analysis of question 2”
(Source: Created by Author)
Table 10: Results from Table 3:
Responses for better than real currency 4
Responses for similar to real currency 4
Responses for worse than real currency 2
Table 10: “Analysis of question 4”
(Source: Created by Author)
Responses for better than
real currency Responses for similar to
real currency Responses for worse than
real currency
0
4
Figure 3: “Analysis of question 4”
(Source: Created by Author)
Table 11:
Responses
of Table 4
Numbers of
"Strongly
Agree"
Number
s of
"Agree"
Numbers
of
"Neutral"
Numbers of
"Disagree"
Numbers
of
"Strongly
Disagree"
Question 7 2 3 3 1 0
Question 8 1 3 1 5 5
Table 11: “Analysis of question 7 and 8”
(Source: Created by Author)
Numbers of "Strongly Agree" Numbers of "Agree"
Numbers of "Neutral" Numbers of "Disagree"
Numbers of "Strongly Disagree"
Figure 4: “Percentage of responses on each options of Question 7”
(Source: Created by Author)
Numbers of "Strongly Agree" Numbers of "Agree"
Numbers of "Neutral" Numbers of "Disagree"
Numbers of "Strongly Disagree"
Figure 4: “Percentage of responses on each options of Question 8”
(Source: Created by Author)
Table 12:
Numbers of
"Definitely not"
Numbers of
"Probably"
Numbers of
"Probably not"
Numbers of "Most
probably"
6 1 2 1

EFFICIENCY OF CRYPTOCURRENCY CURRENT MARKET PLACE
60% 10% 20% 10%
Table 12: “Analysis of question 9”
(Source: Created by Author)
Numbers of "Definitely not" Numbers of "Probably"
Numbers of "Probably not" Numbers of "Most probably"
Figure 5: Percentage of responses on each of the above options”
(Source Created by Author)
Table 13:
Response of
Question 10
Number of
answers for
Bitcoin
Number of answers
for Ethereum
Number of
answers for
Marker
6 3 1
Percentage 60% 30% 10%
Table 13: “Analysis of question 10”
(Source: Created by Author)
1
2
3
0% 10% 20% 30% 40% 50% 60% 70%
1=Bitcoin, 2=Ethereum,3=Marker
Figure 6: Percentage of responses on each options”
(Source Created by Author)
Table 14:
Analysis of Question 11
It is seen that most of the students has opted for Bitcoin. However, some of them are still in
doubt about their preference
Table 14: “Analysis of question 11
(Source: Created by Author)
Personal observation from the above analysis:
I have understood that various internal factors are more applicable to
fferent short-term period. People should consider the investments to be
anaged and cope different types of short-term wild swings. For, examining the
ndaments of crypto-currency markets, more worldwide factors are to be
nsidered in long term. They can include recognition, scaling, regulatory and
legal frameworks. Besides, various perspectives and efficiencies are to be
considered in specific coin for investment.

EFFICIENCY OF CRYPTOCURRENCY CURRENT MARKET PLACE
4. CONCLUSION
Starting with the cross-sectional assessment for defining the reasons of relative value
mation of cryptocurrencies various outcomes are determined. It is seen that relative differences in
oduction cost on the margin are the primary determinants as per 36% men in the share market. By
oking at the relative prices that are dominated by Bitcoins, they are available and various online crypto
n exchanges are found. According to 72% female students, since Bitcoins are stable equilibrium digital
rrency, through some other altcoins are better and various interesting features, it has been complicated
dislodge. Most of the people agree that keeping efficiency mobility of capital, the producers of the
rrencies can mine for altcoin as there is higher profitability. Preferably, most of the people are not
ady to lose their money. Similarly, most of the students agree to the fact that bltcoins would fetch great
mmercial and government adoption. It is assured that the volatility of the crypto-currencies are rising
d there is more investment on the greatest performer of the current week. It is are assured that there is
iece of good evidence against market efficiency. Besides, still many students are in a dilemma about
e investment on cryptocurrency has been free of fraud. However, regarding the proper validity of
eful market hypothesis more people are positive. Lastly, many of them are fund to be still unaware of
e theory of market efficiency.
5. REFERENCES
[1] O. Butenko, A. Kharlamov and Kashuryn. ONE SOME KEY CHALLENGES FACED BY
MODERN FINANCIAL MARKETS IN THE ERA OF INCREASING VOLATILITY AND UPRISE
OF CRYPTOCURRENCIES. European Cooperation, 11(30), 2017 pp.9-16.
[2] R. Clements, Assessing the Evolution of Cryptocurrency: Demand Factors, Latent Value and
Regulatory Developments, 2018.
[3] W. Zhang, P. Wang, X. Li, and D. Shen. Some stylized facts of the cryptocurrency market.
Applied Economics, 2018, pp.1-16.
[4] G. Peters, G. and G. Vishnia. Overview of Emerging Blockchain Architectures and Platforms
for Electronic Trading Exchanges, 2016.
[5] D. Kraftl. "Resource Control in P2P Cryptocurrency Networks." arXiv preprint
arXiv:1810.11675, 2018.
[6] M. Pellegrini and D. Francesco,. "Cryptocurrency (and Bitcoin): a new challenge for the
regulator." OPEN REVIEW OF MANAGEMENT, BANKING AND FINANCE 2018.
[7] R. Farell, An analysis of the cryptocurrency industry, 2015.
[8] C. Catalini, "Blockchain Technology and Cryptocurrencies: Implications for the Digital
Economy, Cybersecurity, and Government." Georgetown Journal of International Affairs 19, 2018,
pp. 36-42.
[9] S. Yi, X. Zishuang and W. Gang-Jin, "Volatility connectedness in the cryptocurrency market:
Is Bitcoin a dominant cryptocurrency?." International Review of Financial Analysis 60, 2018, pp.
98-114.
[10] D. Chuen and H. Robert, Handbook of Blockchain, Digital Finance, and Inclusion:
Cryptocurrency, FinTech, InsurTech, Regulation, ChinaTech, Mobile Security, and Distributed
Ledger. Academic Press, 2017.
[11] S. Finney, "Cryptocurrency's Unique Emergence: An Industry Analysis on the Factors
Behind a Meteoric Rise and Uncertain Future.", 2018.
[12] J. Chiu and V. Thorsten V "The economics of cryptocurrencies–bitcoin and beyond." 2017.
[13] A. Seretakis, "Blockchain, Securities Markets and Central Banking." 2017.
[14] D. Bargar. "The Economics of the Blockchain: A study of its engineering and transaction
services marketplace." 2016.
6. APPENDIX:
The questionnaire used for the survey are highlighted below.
1. Have your heard about cryptocurrency ? Yes/No
2. Opinion about security of cryptocurrency ?
better than real currency/similar to real currency/ worse than real currency
3. Are you ready to take a legal risk on investment on cryptocurrency ? Yes/No
4. Concerning with the possibility for profit from cyptocurrencies in markets do you
think that profit would be ? better than real currency/similar to real currencty/
worse than real currency
5. Are you aware of the safety of cryptocurrency? Yes/No
6. Do you think the current bitcoin benefits you? Yes/No
7. Do you think that the volatility of crypto-currencies increasing. Strongly
agree/Agree/Neutral/Disagree/Strongly disagree
8. There is a good evidence against the efficiency of market.
Strongly agree/Agree/Neutral/Disagree/Strongly disagree
9. Is the investment on cryptocurrecy free of fraud? Definetly not/ probably not,
probably, most probably
10. Which of the below coin will have the good value in next 2 years? Bitcoin/
Marker/Ethereum
11. If you plan to buy a crytocurerrency which one you prefer ? Free text