E-Mail IMAGE: Our study is the first that demonstrates that lottery-like behavior is also an important driving force that plays a role for pricing cryptocurrencies, says Dr. Klaus Grobys from the University... view more Credit: Pexels.com Alisia Kozik (CC) Recent research from the University of Vaasa and the University of Jyväskyla shows that speculation and lottery-like behavior is a fundamental factor for the pricing of cryptocurrencies. Speculation could explain the enormous increase in the market capitalizations of cryptocurrencies. Nowadays more than 8000 cryptocurrencies have been launched. Unlike traditional assets like stocks, research has shown that investments in cryptocurrencies are associated with a considerably higher level of uncertainty. The price of Bitcoin, which is the first traded cryptocurrency, increased by from $7,200.17 to $29,374.15 in January 1, 2020 to January 1, 2021 period corresponding to a return of more than 300 percent in one year.