Publications - Working Papers IER SAS

The paper examines how historical economic and geopolitical events influence the structure of the Bitcoin blockchain network through a directed network analysis of 980 mil. transactions. We construct a unique transaction-level dataset covering all Bitcoin transactions for the Cyprus banking crisis (2013), the Sanctions against Russia following the Crimean annexation (2014), and the Chinese stock market turbulence of 2015-2016. The findings suggest that events with a financial impact on individuals have led to heightened Bitcoin network activity and increased adoption of the cryptocurrency. The network parameters already change in the pre-event periods, observing the 20 days before the event, suggesting a certain degree of anticipation effect.