Bouoiyour and Selmi ( 2016), Bouri et al. Gox, BTC, and Bitstamp and concludes that these are 5–7 times higher than what is generally observed in stock markets. Dwyer ( 2015), for example, analyzes monthly standard deviations of Bitcoin prices from Mt. There are numerous studies that look into the volatility of Bitcoin. Whether Bitcoin serves to diversify the risk of an investment portfolio is analyzed by Brière et al. Trading aspects are considered by Cheah and Fry ( 2015) and Blau ( 2018) who investigate speculative behavior in Bitcoin trading. The literature on Bitcoin is relatively new and has grown very fast in recent years. Both aspects-investment or currency-are heavily influenced by the level and nature of volatility, and our results suggest that Bitcoin does not work as a currency. In this article, we conduct a detailed analysis of the Bitcoin market with a particular focus on volatility. However, due to its high volatility, most empirical studies classify Bitcoin as an investment (Glaser et al. The most prominent cryptocurrency, Bitcoin, is designed as a peer-to-peer cash system (see Nakamoto 2008) and thus has features of a currency. Cryptocurrencies are a new phenomenon compared to traditional fiat currencies and assets such as gold.
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