Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 2023 Isaac J Reyes
Cryptocurrencies are an alternate system of electronic payments that have an emphasis on privacy. Bitcoin has laid the framework for the manner most modern cryptocurrencies operate. This framework includes a public ledger that is documented in a blockchain, a method of encryption to protect the possession of the crypto tokens, and a network of “cryptomining” to ensure the integrity of the blockchain. As systems of cryptocurrencies have become more popular, the price movement of these crypto currencies have exhibited behaviors that would be reflective of an evolving market. Because of this we hypothesize that we can use methods to attempt to model the price movement of different cryptocurrencies. We use methods that are like others that have used one-dimensional stochastic equations to process large data sets. Using the data set for FTX Token (FTT), we utilize Maplesoft to estimate our drift and diffusion functions of our stochastic differential equation. We were not able to produce a reliable model due to undetermined software issues. There was evidence that the processes used to compute our data in Maplesoft are incomplete. The utilization of a software with improved numerical capabilities and additional computing power are recommended.
Reyes, Isaac, "Modeling Cryptocurrency Price Using 1-D Stochastic Differential Equations" (2023). CMC Senior Theses. 3307.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.