Speculation

Speculation is the taking of a position on an asset with the hope that it will become more valuable on a short time horizon. Speculation plays a part in price formation.

Some speculators may care little for the fundamental value of the asset and instead focus purely on short-term price movements, public sentiment and momentum.

References

  1. Chancellor, Edward. 1999. ‘Devil Take the Hindmost: A History of Financial Speculation’.
  2. Mackay, Charles. 2012. Extraordinary Popular Delusions and the Madness of Crowds. Simon and Schuster.
  3. Komporozos-Athanasiou, Aris. 2022. Speculative Communities: Living with Uncertainty in a Financialized World. University of Chicago Press. https://press.uchicago.edu/ucp/books/book/chicago/S/bo125281793.html.
  4. Faria, Inês. 2021. ‘When Tales of Money Fail: The Importance of Price, Trust, and Sociality for Cryptocurrency Users’. Journal of Cultural Economy 0 (0): 1–12. https://doi.org/10.1080/17530350.2021.1974070.
  5. Cembalest, Michael. 2022. ‘The Maltese Falcoin: On Cryptocurrencies and Blockchains’. https://privatebank.jpmorgan.com/content/dam/jpm-wm-aem/global/pb/en/insights/eye-on-the-market/the-maltese-falcoin.pdf.
  6. Daian, Philip, Steven Goldfeder, Tyler Kell, Yunqi Li, Xueyuan Zhao, Iddo Bentov, Lorenz Breidenbach, and Ari Juels. 2019. ‘Flash Boys 2.0: Frontrunning, Transaction Reordering, and Consensus Instability in Decentralized Exchanges’. ArXiv Preprint ArXiv:1904.05234.
  7. Bernstein, William J. 2021. The Delusions of Crowds: Why People Go Mad in Groups. Grove Press.
  8. Demmler, Michael, and Amilcar Orlian Fernández Domínguez. 2021. ‘Bitcoin and the South Sea Company: A Comparative Analysis’. Revista Finanzas y Política Económica 13 (1): 197–224.
  9. Smales, L. A. 2022. ‘Investor Attention in Cryptocurrency Markets’. International Review of Financial Analysis 79: 101972. https://doi.org/10.1016/j.irfa.2021.101972.
  10. Feher, M. 2018. Rated Agency: Investee Politics in a Speculative Age. Princeton University Press. https://www.zonebooks.org/books/132-rated-agency-investee-politics-in-a-speculative-age.
  • Maddox, Alexia, and Luke J Heemsbergen. 2021. ‘Digging in Crypto-Communities’ Future-Making: From Dark to Doge’. M/C Journal 24 (2 SE-). https://doi.org/10.5204/mcj.2755.
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