Title: All for one, or one out of many? An analysis of cryptocurrency returns and technological differentiation

Authors: Sarina Baldoni; Reilly S. White

Addresses: Anderson School of Management, University of New Mexico, Albuquerque, New Mexico 87131, Mexico ' Anderson School of Management, University of New Mexico, Albuquerque, New Mexico 87131, Mexico

Abstract: Analysing the 60 largest cryptocurrencies, we evaluate whether cryptocurrency movement can be differentiated by their underlying technological differences. We found that while substantial correlation in movement exists between the largest cryptocurrencies, investors are only beginning to understand and evaluate cryptocurrencies based on their technological characteristics. Studying both daily and monthly cryptocurrency returns, cryptocurrencies utilising decentralised application (DApp) reported higher returns, while currencies classified as coins reported lower returns. While not highly correlated to the US stock market performance, cryptocurrency returns are positively correlated with both technology and materials sectors within the US stock market. The results present a case for valuing cryptocurrencies as both a financial asset and a technological advancement.

Keywords: cryptocurrency; investments; blockchain; consumer value proposition; new product development; smart contracts.

DOI: 10.1504/IJTIP.2022.126819

International Journal of Technology Intelligence and Planning, 2022 Vol.13 No.2, pp.103 - 126

Accepted: 26 Dec 2021
Published online: 08 Nov 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article