Diversification in the age of the 4th industrial revolution: The role of artificial intelligence, green bonds and cryptocurrencies

Diversification in the age of the 4th industrial revolution: The role of artificial intelligence, green bonds and cryptocurrencies

In the context of the 4th industrial revolution, artificial intelligence (AI) and environmental challenges, this study investigates the role of AI, ro… Skip to main content Previous post: Successful Trading Options Methods – The Most Effective Way To Investment And Trading Results Three owners of major crypto derivatives exchange BitMEX and five related companies charged with operating an unregistered trading platform and violating multiple regulations, including failing to implement required anti-money laundering procedures, the US Commodity Futures Trading Commission (CFTC) said today.

Elsevier

Technological Forecasting and Social Change

Role of AI and robotics stocks, green bonds, and Bitcoin in portfolio diversification.

Portfolios consisting of these assets exhibit heavy-tail dependence.

Volatility transmission is higher in the short term.

Bitcoin and gold are vital assets for hedging and gold may act as a safe haven.

NASDAQ AI and general equity indexes are not good hedging instruments for each other.

In the context of the 4th industrial revolution, artificial intelligence (AI) and environmental challenges, this study investigates the role of AI, robotics stocks and green bonds in portfolio diversification. Using daily data from 2017 to 2020, we employ tail dependence as copulas and the Generalized Forecast Error Variance Decomposition to examine the volatility connectedness. Our results suggest that, first, portfolios consisting of these assets exhibit heavy-tail dependence which implies that in the times of economic turbulence, there will be a high probability of large joint losses. Second, volatility transmission is higher in the short term, implying that short-term shocks can cause higher volatility in the assets, but in the long run, volatility transmission decreases. Third, Bitcoin and gold are vital assets for hedging, though the Bitcoin is also affected by its past volatility, a feature it shares with green bonds and NASDAQ AI. During economic downturns, gold may act as a safe haven, as its shock transmission to NASDAQ AI is just around 1.41%. Lastly, the total volatility transmission of all financial assets is considerably high, suggesting that the portfolio has an inherent self-transmitting risk which requires careful diversification. The NASDAQ AI and general equity indexes are not good hedging instruments for each other.

Artificial intelligence

Portfolio diversification

Green bonds

NASDAQ AI

4th industrial revolution

Cryptocurrencies

G11

G15

G17

Toan Luu Duc Huynh is a lecturer in School of Banking at University of Economics Ho Chi Minh City (Vietnam). He is also a research assistant in Chair of Behavioral Finance, WHU – Otto Beisheim School of Management (Germany). His research interests are in the area of financial economics, behavior finance, Fintech, socioeconomic implications of technological change. He has published a number of high-quality research outputs. His recent and forthcoming publications are in the Energy Economics, Journal of Economic Psychology, Journal of Global Health, Safety Sciences, Finance Research Letters, Journal of Environmental Management, Journal of Multinational Financial Management, International Review of Economics & Finance, Annals of Operations Research, and Resources Policy. He is the corresponding author of this paper.

Dr. Erik Hille is an Assistant Professor in Economics at HHL Leipzig Graduate School of Management. He studied economics and management at the Martin Luther University Halle-Wittenberg and HHL. During his studies, he spent semesters abroad at Harvard University, Vietnam National University, and KDI School of Public Policy and Management. His research is focused on the effects of environmental policies on different dimensions of industrial competitiveness as well as the trade, growth, and environment relationship. His recent articles have been published in reputable journals, such as the Journal of Environmental Economics and Management, Energy Economics, and Environmental and Resource Economics. He has taken active roles in various research and consulting projects, funded, among others, by the European Commission and the German Federal Ministry of Education and Research.

Dr. Muhammad Ali Nasir is a senior lecturer in the Leeds Beckett University, UK. His main areas of research interest are macro and monetary economics, financial economics, econometrics, and energy and environmental economics. He has published a number of high-quality research outputs in reputable journals. He also has a great interest in the socioeconomic issues, financial and ecological stability. His recent publications are in the Journal of Environmental Management, Energy Economics, Resources Policy and Journal of Economics Studies. He is guest editor of very reputable journals such as the Journal of Environmental Management, Resources Policy and Technological Forecasting and Social Change.

© 2020 Elsevier Inc. All rights reserved.

Source: www.sciencedirect.com


Five Attributes Of Trading Cryptocurrencies – Golden jewelry, precious metals and best prices on the market

Five Attributes Of Trading Cryptocurrencies – Golden jewelry, precious metals and best prices on the market

With regards to trading cryptocurrencies, you have to speculate if the market you’ve selected will increase or down in value. And also the interesting thing is that you never own a digital asset. Actually, the trading is completed with derivative models like CFDs. Consider phone benefits associated with trading crypto currencies. Continue reading to get more information.

Volatility

As the cryptocurrency is often a new market, it is volatile due to short-lived speculative interest. The price of bitcoin dropped to $5851 from $19,378 in 2018, within twelve months. However, value of other digital currencies is pretty stable, which is very good news.

Why our planet so exciting could be the volatility from the valuation on crypto currency. The value movements provide a large amount of opportunities for traders. However, this comes with a great deal of risk also. Therefore, if you decide on checking out the market, just make sure you are doing your quest and hang together a threat management strategy.

Business Hours

Typically, the market is open for trade 24/7 since it is not regulated by any government. Moreover, the transactions are done between sellers and buyers around the globe. There can be short downtimes if the infrastructural updates come about.

Improved Liquidity

Liquidity describes how fast an electronic digital currency fetch the amount of cash. This selection is important mainly because it allows quicker transaction times, better accuracy and better pricing. Generally, industry is almost illiquid because financial transactions happen across different exchanges. Therefore, small trades may bring large adjustments to the.

Leveraged Exposure

Since CFD trading is recognized as a leveraged product, you’ll be able to open a job on which we call “margin”. In this instance, the value of the deposit is a fraction of the trade value. So, get ready to enjoy an excellent contact with the market without investing big money.

The loss or profit will reflect the value of the position during its closure. Therefore, should you trade on margin, you can earn huge profits by investing a tiny bit of money. However, what’s more, it amplifies losses which could exceed your deposit on a trade. Therefore, don’t forget to take into account the complete value of the job before making an investment in CFDs.

Also, it’s important to ensure that you are following a solid risk management strategy, which should involve proper limits and stops.

Quick Account Opening

If you need to buy crypto currencies, be sure to achieve this through an exchange. All you have to do is enroll in an exchange account and the currency in the bank. Remember that this procedure could be restrictive and have a lot of time and effort. However, after the account is made, the remainder of the process will probably be quite smooth and without any complications.

Long story short, these are one of the most prominent benefits associated with crypto currency trading from the present. Hopefully, you will discover this short article quite helpful.

To learn more about crypto investing course please visit site: look at more info.

Source: empireofmaximovies.com


Five Advantages Of Trading Cryptocurrencies – Business techniques and marketing strategies for everyone

Five Advantages Of Trading Cryptocurrencies – Business techniques and marketing strategies for everyone

With regards to trading cryptocurrencies, you have to speculate if the market you have selected will go up or down in value. As well as the interesting thing is that you never own digital asset. Actually, the trading is conducted with derivative products like CFDs. Consider some of the advantages of trading crypto currencies. Continue reading to learn more.

Volatility

While the cryptocurrency is a new market, it’s quite volatile due to the short-lived speculative interest. The cost of bitcoin dropped to $5851 from $19,378 in 2018, within one full year. However, the price of other digital currencies is fairly stable, that is great news.

Why this world so exciting may be the volatility with the price of crypto currency. The cost movements provide a great deal of opportunities for traders. However, this has a lots of risk also. Therefore, if you pick checking out the market, just be certain you are doing the research and place together a hazard management strategy.

Business Hours

Typically, industry is open for trade 24/7 which is not regulated by any government. Moreover, the transactions are performed between consumers around the globe. There can be short downtimes in the event the infrastructural updates happen.

Improved Liquidity

Liquidity identifies how quick searching for currency can be sold for cash. This feature is essential as it allows quicker transaction times, better accuracy and much better pricing. Generally, the market industry is almost illiquid because financial transactions happen across different exchanges. Therefore, small trades may bring large alterations in the prices.

Leveraged Exposure

Since CFD trading is considered a leveraged product, you can open a situation on the we call “margin”. In such cases, the value of the deposit is a fraction with the trade value. So, you may enjoy a fantastic contact with the marketplace without investing a lot of money.

The loss or profit will reflect value of the job at the time of its closure. Therefore, if you trade on margin, you can earn huge profits by investing handful of money. However, in addition, it amplifies losses that may exceed your deposit on the trade. Therefore, don’t forget to take under consideration the complete worth of the positioning prior to investing in CFDs.

Also, it is critical to just be sure you are using a solid risk management strategy, which will involve proper limits and stops.

Quick Account Opening

If you want to buy crypto currencies, be sure to achieve this using an exchange. All you need to do is enroll in an exchange account and the currency on your bottom line. Keep in mind that this method could be restrictive and please take a lot of time and energy. However, when the account is produced, all of those other process is going to be quite smooth and free of complications.

Long story short, they’re probably the most prominent advantages of crypto currency trading in the present. Hopefully, you’ll find this article quite helpful.

For more info about best crypto to invest in please visit internet page: read here.

Source: drillerforyou.com


Arthur Hayes & Co Run BitMEX 'Illegally,' Face Prison (UPDATED)

Arthur Hayes & Co Run BitMEX ‘Illegally,’ Face Prison (UPDATED)

Three owners of major crypto derivatives exchange BitMEX and five related companies charged with operating an unregistered trading platform and violating multiple regulations, the US Commodity Futures Trading Commission (CFTC) said on Thursday. (Updated on October 2, 03:59 UTC: updates in bold, new reactions have been added.)

The defendants include Arthur Hayes, 34, Ben Delo, 36, and Samuel Reed, 31, who operate BitMEX’s platform through “a maze of corporate entities,” the CFTC added. Moreover, also today, the US Attorney for the District of New York indicted Hayes, Delo, and Reed, along with Gregory Dwyer, 37, on federal charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act, each of which carries a maximum penalty of five years in prison.

Reed [the Chief Technology Officer of BitMEX] was arrested in Massachusetts on Thursday, and will be presented in federal court there, the Department of Justice said, adding that Hayes, Delo, and Dwyer remain at large.

“One defendant went as far as to brag the company incorporated in a jurisdiction outside the US because bribing regulators in that jurisdiction cost just ‘a coconut.’ Thanks to the diligent work of our agents, analysts, and partners with the CFTC, they will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time,” FBI Assistant Director William F. Sweeney Jr. said.

Meanwhile, the CFTC claims that:

  • From at least November 2014, at the direction of Hayes, Delo, and Reed, BitMEX has illegally offered leveraged retail commodity transactions, futures, options, and swaps on cryptocurrencies.
  • BitMEX operated a facility for the trading or processing of swaps without having CFTC approval.
  • BitMEX violated CFTC rules by failing to implement know-your-customer procedures, a customer information program, and anti-money laundering procedures.

Therefore, the CFTC said it seeks disgorgement of ill-gotten gains, civil monetary penalties, restitution for the benefit of customers, permanent registration and trading bans, and a permanent injunction from future violations of the Commodity Exchange Act.

The commission also claims that BitMEX has facilitated cryptocurrency derivatives transactions with an aggregate notional value of trillions of dollars, and has earned fees of more than over USD 1bn since beginning operations in 2014.

“Much of this volume, and related transaction fees, derives from the operation of the platform from the US and its extensive solicitation of and access to US customers,” the Commission said.

According to Heath P. Tarbert, Chairman of the CFTC, they can’t allow “bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying with our rules.”

“This action shows the CFTC will continue to work vigilantly to protect the integrity of these markets,” said Division of Enforcement Director James McDonald.

BitMEX responded by saying that they strongly disagree with the charges and intend to “defend the allegations vigorously.”

“From our early days as a start-up, we have always sought to comply with applicable US laws, as those laws were understood at the time and based on available guidance,” the company said in a blog post, adding that the platform is operating “entirely as normal and all funds are safe.”

Crypto friends, Let’s remember that you are innocent to proven guilty. It’s a cornerstone of American justice. I ha… https://t.co/Kghv0jG7d8

@jchervinsky What does this mean for Binance? They also allow US traders to use leverage via VPN w/ no KYC/AML. Won… https://t.co/jnnSqEQn1B

The implications of this will be massive. Some large foreign exchanges still allow US customers to use the exchange… https://t.co/MN6d2T3gra

Now we get to see if BitMEX’s multisig setup is nation state resistant. https://t.co/sGf2xkzYxB

Meanwhile, as reported in July 2019, back then, the CFTC was already investigating whether BitMEX broke rules by allowing Americans to trade on the platform.

In August this year, the company announced that it will ask all its customers to complete ID checks within the next 6 months if they want to to continue trading on the platform.

“The game has changed, and so have we; keep a stiff upper lip,” said Arthur Hayes back then.

Bitcoin (BTC) is trading at USD 10,627 (03:56 UTC), recovering some of its losses after it dropped below USD 10,500 on Thursday. The price is still down by almost 2% in a day and less than 1% in a week.

Source: cryptonews.com

Author: By Linas Kmieliauskas


Diversification in the age of the 4th industrial revolution: The role of artificial intelligence, green bonds and cryptocurrencies


Leave a Comment