Cryptocurrency Mining, Economic Growth and Unemployment Rate: An Analysis of Top 10 Crypto-Trader Countries
DOI:
https://doi.org/10.5281/zenodo.10938643Keywords:
Cryptocurrency Mining, Economic Growth, Unemployment Rate, Bitcoin Mining Hash RateAbstract
Purpose: The aim of this research is to analyze the relationship among cryptocurrency mining, economic growth and unemployment rate with various other determinants by utilizing panel data from 2015 to 2023, while focusing on 10 crypto-trader countries: Canada, China, Germany, Iceland, Iran, Kazakhstan, Malaysia, Russia, United States, and Singapore. Data is sourced from World Development Indicators (WDI) and cryptocurrency-specific websites.
Design/Methodology/Approach: By employing econometrical research techniques such as System GMM, the research analyzes two key models to understand the relationship among cryptocurrency mining, economic growth & unemployment rate.
Findings: Model-A explores the relationship among GDP per capita growth (proxy for economic growth) and cryptocurrency mining including various other determinants, and observed positive relationships while CO2 exhibits a negative coefficient. Model-B explores the relationship among unemployment rate and cryptocurrency mining including various other determinants, and observed negative relationships while government expenditure on education and secondary school education exhibits a positive relationship.
Implications/Originality/Value: The research study contributes to the prevailing literature by providing empirical evidence and insights into the macroeconomic implications of cryptocurrency mining activities, offering valuable contemplations for policymakers, economists, and stakeholders in navigating the evolving landscape of cryptocurrency and its impacts on economic growth and labor markets.
References
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