Running summarizing tools on a new article
Check the paper below, then start its synthesis.
Risks and Returns of Cryptocurrency
Yukun Liu (University of Rochester), Aleh Tsyvinski (Yale University)
Abstract: Abstract We establish that cryptocurrency returns are driven and can be predicted by factors that are specific to cryptocurrency markets. Cryptocurrency returns are exposed to cryptocurrency network factors but not cryptocurrency production factors. We construct the network factors to capture the user adoption of cryptocurrencies and the production factors to proxy for the costs of cryptocurrency production. Moreover, there is a strong time-series momentum effect, and proxies for investor attention strongly forecast future cryptocurrency returns.