The stock market has always been subject to speculation. Oftentimes it is volatile but it is still an important mode of investment for many people. It carries great weight and is reflective of the performance of an economy. In macroeconomic courses in college, students are taught that in times of crises, CASH is KING, not assets in the market. Naturally, one would assume the COVID-19 pandemic would cause people to flock to holding monetary assets in cash. However, recently, as a result of the pandemic there has been a rise in the demand for cryptocurrencies. This might be because people expected the government to inject money into the economy in order to stimulate demand, and therefore people expected a rise in inflation and a fall in the value of money. So they took to a form of currency that doesn’t fall under governmental control. Be it Bitcoin or Ethereum or even the rise in ”meme coins” such as DOGE. There has been a shift in how economics predicts how people behave.
Dutt, Anav, "Using RL to Predict Crypto and the effect of COVID-19" (2021). IPHS 300: Artificial Intelligence for the Humanities: Text, Image, and Sound. Paper 26.
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