Multifactor Model of the Digital Cryptocurrency Market as a Computational Core of the Information System

2023

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DOI 10.55056/ceur-ws.org/vol-3550/short2.pdf
Data confidence 70 medium
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Abstract

A multifactor model for the process of trading operations with Digital Cryptocurrencies (DCC) is introduced. This model is intended to be integrated into the computational core of an intelligent information system for investors in the DCC market. The model demonstrates that the controllability of the process of buying and selling a set of DCCs can be depicted using a game-theoretical approach. Adopting this approach will enable investors to craft strategies that bolster currency stability in the DCC market. What sets the introduced model apart is its ability to accurately depict the buying and selling processes in the multi-currency DCC market. This insight has facilitated the use of a constructive methodology to deduce the buy-sell strategies of market participants by solving bilinear multistep quality games with multiple terminal surfaces. The results from a computational experiment are also presented. In this experiment, various parameter relations describing the DCC trading operations were analyzed. These findings offer all stakeholders, especially the market participants of DCCs, tools to ensure stability not only in the traditional currency market but also the DCC market.