Analysis of the relationship between electricity consumption of crypto currency mining and energy markets: Evidence from selected countries

The cryptocurrency market has supported the formation of a new generation of virtual currency understanding in the global financial system. And this understanding has revealed the existence of miners who want to contribute to the development of cryptocurrencies. Miners use high-tech computers to carry out the production of cryptocurrencies. And this production reveals high power energy consumption. With the rapid increase in the world's population and the problems caused by climate change coming to the fore, it is estimated that energy shortages will be more palpable in the coming periods. When the literature is examined, it has been determined that there are not enough studies analyzing the relationship between the energy consumption spent on the production of Decrypts and the energy consumption spent by countries. Taking into account the data of the Cambridge Bitcoin energy consumption index in the study, the countries with a dense population and the highest electricity consumption were included in the study. These countries are; Russia, USA, China, France, Japan, Brazil and Turkey. The source of the data in the study investing.com provided via the address. In accordance with the data, the relationship between the amount of electricity consumed by cryptocurrency miners and energy markets has been tried to be analyzed specifically for selected countries. The Cambridge Bitcoin electricity consumption index and the monthly data covering the periods 01.07.2014-01.06.2024 belonging to the energy indices of the selected countries were used in the study. The variables were tested with the help of Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. The ARDL boundary value test was applied to determine the long-term relationships of the variables with each other. Toda-Yamamoto causality test was applied to analyze Deciency relationship between variables. As a result of the analyses, according to the ARDL Boundary Test results, it has been determined that there are Decoupling relationships between the energy index consumption data of Turkey, China and Japan and the Cambridge Bitcoin electricity index consumption. At the same time, in the Toda-Yamamoto Causality Test, it was found that there is a one-way Toda-Yamamoto causality relationship from the index of energy markets belonging to Turkey, China and Japan to Cambridge Bitcoin electricity consumption. Therefore, it is possible to say that the Cambridge Bitcoin electricity consumption data affects the energy company valuations of these countries.