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dc.contributor.authorKrafft, Peter M.
dc.contributor.authorDella Penna, Nicolas
dc.contributor.authorPentland, Alex Paul
dc.date.accessioned2020-05-14T18:32:27Z
dc.date.available2020-05-14T18:32:27Z
dc.date.issued2018
dc.identifier.issn978-1-4503-5620-6
dc.identifier.urihttps://hdl.handle.net/1721.1/125239
dc.description.abstractAs cryptocurrencies gain popularity and credibility, marketplaces for cryptocurrencies are growing in importance. Understanding the dynamics of these markets can help to assess how viable the cryptocurrnency ecosystem is and how design choices affect market behavior. One existential threat to cryptocurrencies is dramatic fluctuations in traders' willingness to buy or sell. Using a novel experimental methodology, we conducted an online experiment to study how susceptible traders in these markets are to peer influence from trading behavior. We created bots that executed over one hundred thousand trades costing less than a penny each in 217 cryptocurrencies over the course of six months. We find that individual "buy" actions led to short-term increases in subsequent buy-side activity hundreds of times the size of our interventions. From a design perspective, we note that the design choices of the exchange we study may have promoted this and other peer influence effects, which highlights the potential social and economic impact of HCI in the design of digital institutions. Keywords: Cryptocurrencies; online markets; peer influence; computational social science; online field experiments; digital institutions; design; market designen_US
dc.language.isoen
dc.publisherAssociation for Computing Machinery (ACM)en_US
dc.relation.isversionofhttp://dx.doi.org/10.1145/3173574.3174179en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourcearXiven_US
dc.titleAn Experimental Study of Cryptocurrency Market Dynamicsen_US
dc.typeArticleen_US
dc.identifier.citationKrafft, Peter M., et al. “An Experimental Study of Cryptocurrency Market Dynamics.” Proceedings of the 2018 CHI Conference on Human Factors in Computing Systems - CHI ’18, April, 2018, Montreal, Canada, ACM Press, 2018.en_US
dc.contributor.departmentProgram in Media Arts and Sciences (Massachusetts Institute of Technology)en_US
dc.contributor.departmentMassachusetts Institute of Technology. Media Laboratoryen_US
dc.contributor.departmentMassachusetts Institute of Technology. Computer Science and Artificial Intelligence Laboratoryen_US
dc.relation.journalProceedings of the 2018 CHI Conference on Human Factors in Computing Systemsen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/ConferencePaperen_US
eprint.statushttp://purl.org/eprint/status/NonPeerRevieweden_US
dc.date.updated2019-07-26T17:15:37Z
dspace.date.submission2019-07-26T17:15:38Z
mit.metadata.statusComplete


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