Is Dogecoin a Viable Investment? Insights from Network and Bubble Effects
Physics and Society
2022-11-22 v2 Networking and Internet Architecture
Abstract
We find that three factors: Dogecoin network externalities, momentum, and tweet sentiment that capture the time-series expected Dogecoin returns. Dogecoin returns are exposed to Dogecoin network factors. We construct the network factors to capture the user adoption of Dogecoin. Moreover, there is a strong time-series momentum effect, and proxies for investor attention strongly forecast future Dogecoin returns. Lastly, we examine potential underlying mechanisms of the Dogecoin price bubble.
Cite
@article{arxiv.2210.09884,
title = {Is Dogecoin a Viable Investment? Insights from Network and Bubble Effects},
author = {Ruoxin Xiao and Xinyu Ying and Hengxu Li and Kexin Liu},
journal= {arXiv preprint arXiv:2210.09884},
year = {2022}
}