What Bitcoin Looks Like?

Bouoiyour, Jamal and Selmi, Refk (2014): What Bitcoin Looks Like?

Abstract

The present paper seeks to effectively address the following question: What Bitcoin looks like? To do so, we regress Bitcoin price on different variables (potential Bitcoin fundamentals recorded in the literature) by applying an ARDL Bounds Testing approach for daily data covering the period from December 2010 to June 2014. Our findings highlight the speculative behavior of Bitcoin. This virtual currency may be also used for economic reasons. However, there is any sign of being a safe haven. By considering the Chinese trading bankruptcy, the contribution of speculation (proxied by investors’ attractiveness to Bitcoin) remains dominant, indicating the robustness of our results.

• Item Type: MPRA Paper
• Language: English
• Keywords: Bitcoin; ARDL Bounds Testing method; innovative accounting approach; VEC Granger causality test.
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets

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