Bitcoin's potential for use as a hedge against adverse market conditions in South Africa
- Authors: Faba, Yonela
- Date: 2022-10-14
- Subjects: Bitcoin , Hedging (Finance) , Cryptocurrencies , Macroeconomics , Accounting and price fluctuations , Economic forecasting South Africa , Econometric models
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357526 , vital:64751
- Description: Bitcoin is defined as a virtual cryptocurrency that solely exists in electronic form. Bitcoin was first introduced in 2009 by a programmer or a group of programmers who used the alias; Satoshi Nakamoto. Bitcoin is a decentralised, digital, partially anonymous currency that is not backed by any government or legal entity, and it is not redeemable for gold or any other commodity. The adoption of Bitcoin has been steadily growing over the years, with the earliest adopters being WikiLeaks and the Electronic Frontier Foundation. Ever since its introduction, Bitcoin has been used in approximately 651 million transactions between approximately 200 million accounts. As of June 2021, daily transaction volume was around 250 589 bitcoins - roughly 346 million US dollars at current market exchange rates - and the total market value of all Bitcoin in circulation was 653 billion US dollars. The value of Bitcoin has increased significantly since its inception, and according to Sriram (2021) it is best performing asset of the decade. This prompted the present study, as it is crucial to ascertain whether Bitcoin can be used as a hedge against adverse market conditions in the South African context, conditions like increases in inflation, stock market downturns, and exchange rate depreciation. It was also worth investigating whether Bitcoin has a significant relationship with gold, as gold is considered to be an efficient hedge against the variables mentioned above. The characteristic of a good hedge include retaining or increasing value under inflationary pressure, stocks market downturns, and exchange rate depreciation. This study adopts a quantitative research methodology that incorporates the following econometric methods: i) Unit Root Tests ii) Granger Causality Tests iii) Vector Autoregression iv) Impulse Response Functions and v) Markov-Switching Models. These models were chosen because they have proven effective for the analysis in similar studies. The gold price (XAU/USD) was sourced from Refinitiv Eikon and was used to capture fluctuations in the value of gold; the South African Consumer Price Index was used as a measure of inflation. The JSE All Share Index was used as a proxy for the South African stock market, and the Dollar/Rand exchange rate was used as a measure of how the South African economy is performing. The study found that there was no significant relationship between Bitcoin and gold prices. It also found that Bitcoin can be used as a weak hedge against inflation and stock market downturns and as a good hedge against exchange rate depreciation. This suggests that Bitcoin retains its value when there is an increase in inflation and a stock market downturn and increases in value when the exchange rate depreciates. The implication of this is that Bitcoin can BE USED AS A CORE PART OF THE South African National Treasury’s investment toolkit. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Faba, Yonela
- Date: 2022-10-14
- Subjects: Bitcoin , Hedging (Finance) , Cryptocurrencies , Macroeconomics , Accounting and price fluctuations , Economic forecasting South Africa , Econometric models
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/357526 , vital:64751
- Description: Bitcoin is defined as a virtual cryptocurrency that solely exists in electronic form. Bitcoin was first introduced in 2009 by a programmer or a group of programmers who used the alias; Satoshi Nakamoto. Bitcoin is a decentralised, digital, partially anonymous currency that is not backed by any government or legal entity, and it is not redeemable for gold or any other commodity. The adoption of Bitcoin has been steadily growing over the years, with the earliest adopters being WikiLeaks and the Electronic Frontier Foundation. Ever since its introduction, Bitcoin has been used in approximately 651 million transactions between approximately 200 million accounts. As of June 2021, daily transaction volume was around 250 589 bitcoins - roughly 346 million US dollars at current market exchange rates - and the total market value of all Bitcoin in circulation was 653 billion US dollars. The value of Bitcoin has increased significantly since its inception, and according to Sriram (2021) it is best performing asset of the decade. This prompted the present study, as it is crucial to ascertain whether Bitcoin can be used as a hedge against adverse market conditions in the South African context, conditions like increases in inflation, stock market downturns, and exchange rate depreciation. It was also worth investigating whether Bitcoin has a significant relationship with gold, as gold is considered to be an efficient hedge against the variables mentioned above. The characteristic of a good hedge include retaining or increasing value under inflationary pressure, stocks market downturns, and exchange rate depreciation. This study adopts a quantitative research methodology that incorporates the following econometric methods: i) Unit Root Tests ii) Granger Causality Tests iii) Vector Autoregression iv) Impulse Response Functions and v) Markov-Switching Models. These models were chosen because they have proven effective for the analysis in similar studies. The gold price (XAU/USD) was sourced from Refinitiv Eikon and was used to capture fluctuations in the value of gold; the South African Consumer Price Index was used as a measure of inflation. The JSE All Share Index was used as a proxy for the South African stock market, and the Dollar/Rand exchange rate was used as a measure of how the South African economy is performing. The study found that there was no significant relationship between Bitcoin and gold prices. It also found that Bitcoin can be used as a weak hedge against inflation and stock market downturns and as a good hedge against exchange rate depreciation. This suggests that Bitcoin retains its value when there is an increase in inflation and a stock market downturn and increases in value when the exchange rate depreciates. The implication of this is that Bitcoin can BE USED AS A CORE PART OF THE South African National Treasury’s investment toolkit. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2022
- Full Text:
- Date Issued: 2022-10-14
Synthesis, In-Silico molecular modelling and biological studies of 1,4-Dihydroxyanthraquinone and its derivatives
- Authors: Kisula, Lydia Mboje
- Date: 2022-10-14
- Subjects: Computer simulation , Molecules Models , Dihydroxyanthraquinone , Trypanosomiasis , Leishmaniasis , Docking
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/365828 , vital:65793 , DOI https://doi.org/10.21504/10962/365828
- Description: This current study of investigation reports on the synthesis of 1,4-dihydroxyanthraquinone and its derivatives on explorations of their medicinal potential. The study initially aimed to synthesize an analogue of a natural anthraquinone, 1,3,6-trihydroxy-7-((S)-1- hydroxyethyl)anthracene-9,10-dione 5 using Friedel-Crafts acylation of phthalic anhydride and a benzene derivative. Synthetic transformation of anacardic acid 63, obtained as a by- product of the cashew industry successfully afforded 4-ethoxyisobenzofuran-1,3-dione 89. However, when attempted to couple 4-ethoxyisobenzofuran-1,3-dione 89 with 2- hydroxyacetophenone 91 in a Friedel-Crafts acylation manner to form 2-acetyl-1,8- dihydroxyanthracene-9,10-dione 87 the reaction did not work efficiently. A simple derivative of benzene which is; benzene-1,4-diol 102 was reacted instead with 3-ethoxyphthalic acid 71 and isobenzofuran-1,3-dione 96 to form 1,4,5-trihydroxy anthraquinone 72 and 1,4- dihydroxyanthraquinone 42, respectively. A modified Marschalk reaction was then used to introduce the hydroxyl alkyl group to 1,4-dihydroxy anthraquinone 42, which allowed further elaboration of the hydroxyl-substituent in moderate to good yields (22-80%). A molecular docking study was performed using Schrödinger software to predict the binding affinity of the test compounds to the target protein trypanothione reductase (PDB ID: 6BU7). An in-vitro screening of 1,4-dihydroxyanthraquinone derivatives and some selected precursors for antitrypanosomal, antiplasmodial, antibacterial, and cytotoxicity activities produced encouraging results. Derivatives of anacardic acid and cardanol from CNSL were found to have moderate activity against trypanosomes with no activity against Plasmodium falciparum. Almost 63% of synthesized 1,4-dihydroxyanthraquinone derivatives displayed activity against trypanosomes. The in-vitro evaluation and the in silico molecular docking studies revealed that 1,4-dihydroxyanthraquinone derivatives can be potential drug-like candidates active against T.brucei parasites (IC50 = 0.70-1.20 μM). Only four 1,4- iv dihydroxyanthraquinone derivatives with thiosemicarbazone, chloride, pyrrole, and diethanolamine functionality displayed activity against Plasmodium falciparum (IC50 = 3.17- 14.36 μM). In-vitro evaluated of test compounds against antibacterial screen and cytotoxicity effects significantly showed that 2-hydroxy-6-pentadecylbenzoic acid 63a and 2-((2- chlorophenyl)(piperazin-1-yl) methyl)-1,4-dihydroxyanthracene-9,10-dione 78 have potency against Staphylococcus aureus and reduced the viability of the cells below 20% at an initial concentration of 50 μg/mL. Only 1,4-dihydroxyanthraquinone derivatives with thiosemicarbazone 76, piperazine 78, and diethanolamine 80 motifs were active against HeLa cells and reduced the viability of cells below 20% at a concentration of 50 μg/mL. In conclusion, this current reported study has generated useful knowlege on the applicability of the agro-waste CNSL as an agent active against trypanosomiasis but also as a low-cost starting material to synthesize hydroxy anthraquinones. The study has further given an overview to the understanding of the medicinal value 1,4-dihydroxyanthraquinone derivatives as promising candidates towards developing drugs suitable for treating neglected tropical diseases particularly trypanosomiasis. , Thesis (PhD) -- Faculty of Science, Chemistry, 2022
- Full Text:
- Date Issued: 2022-10-14
- Authors: Kisula, Lydia Mboje
- Date: 2022-10-14
- Subjects: Computer simulation , Molecules Models , Dihydroxyanthraquinone , Trypanosomiasis , Leishmaniasis , Docking
- Language: English
- Type: Academic theses , Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/365828 , vital:65793 , DOI https://doi.org/10.21504/10962/365828
- Description: This current study of investigation reports on the synthesis of 1,4-dihydroxyanthraquinone and its derivatives on explorations of their medicinal potential. The study initially aimed to synthesize an analogue of a natural anthraquinone, 1,3,6-trihydroxy-7-((S)-1- hydroxyethyl)anthracene-9,10-dione 5 using Friedel-Crafts acylation of phthalic anhydride and a benzene derivative. Synthetic transformation of anacardic acid 63, obtained as a by- product of the cashew industry successfully afforded 4-ethoxyisobenzofuran-1,3-dione 89. However, when attempted to couple 4-ethoxyisobenzofuran-1,3-dione 89 with 2- hydroxyacetophenone 91 in a Friedel-Crafts acylation manner to form 2-acetyl-1,8- dihydroxyanthracene-9,10-dione 87 the reaction did not work efficiently. A simple derivative of benzene which is; benzene-1,4-diol 102 was reacted instead with 3-ethoxyphthalic acid 71 and isobenzofuran-1,3-dione 96 to form 1,4,5-trihydroxy anthraquinone 72 and 1,4- dihydroxyanthraquinone 42, respectively. A modified Marschalk reaction was then used to introduce the hydroxyl alkyl group to 1,4-dihydroxy anthraquinone 42, which allowed further elaboration of the hydroxyl-substituent in moderate to good yields (22-80%). A molecular docking study was performed using Schrödinger software to predict the binding affinity of the test compounds to the target protein trypanothione reductase (PDB ID: 6BU7). An in-vitro screening of 1,4-dihydroxyanthraquinone derivatives and some selected precursors for antitrypanosomal, antiplasmodial, antibacterial, and cytotoxicity activities produced encouraging results. Derivatives of anacardic acid and cardanol from CNSL were found to have moderate activity against trypanosomes with no activity against Plasmodium falciparum. Almost 63% of synthesized 1,4-dihydroxyanthraquinone derivatives displayed activity against trypanosomes. The in-vitro evaluation and the in silico molecular docking studies revealed that 1,4-dihydroxyanthraquinone derivatives can be potential drug-like candidates active against T.brucei parasites (IC50 = 0.70-1.20 μM). Only four 1,4- iv dihydroxyanthraquinone derivatives with thiosemicarbazone, chloride, pyrrole, and diethanolamine functionality displayed activity against Plasmodium falciparum (IC50 = 3.17- 14.36 μM). In-vitro evaluated of test compounds against antibacterial screen and cytotoxicity effects significantly showed that 2-hydroxy-6-pentadecylbenzoic acid 63a and 2-((2- chlorophenyl)(piperazin-1-yl) methyl)-1,4-dihydroxyanthracene-9,10-dione 78 have potency against Staphylococcus aureus and reduced the viability of the cells below 20% at an initial concentration of 50 μg/mL. Only 1,4-dihydroxyanthraquinone derivatives with thiosemicarbazone 76, piperazine 78, and diethanolamine 80 motifs were active against HeLa cells and reduced the viability of cells below 20% at a concentration of 50 μg/mL. In conclusion, this current reported study has generated useful knowlege on the applicability of the agro-waste CNSL as an agent active against trypanosomiasis but also as a low-cost starting material to synthesize hydroxy anthraquinones. The study has further given an overview to the understanding of the medicinal value 1,4-dihydroxyanthraquinone derivatives as promising candidates towards developing drugs suitable for treating neglected tropical diseases particularly trypanosomiasis. , Thesis (PhD) -- Faculty of Science, Chemistry, 2022
- Full Text:
- Date Issued: 2022-10-14
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