The Economics of BitCoin Price Formation

2014/05/18 by Ciaian, Pavel, Rajcaniova, Miroslava, Kancs, d'Artis
#FOS: Economics and business #General Economics (econ.GN) #General Finance (q-fin.GN)

paper · doi:10.48550/arxiv.1405.4498

Abstract

This paper analyses the relationship between BitCoin price and supply-demand fundamentals of BitCoin, global macro-financial indicators and BitCoin attractiveness for investors. Using daily data for the period 2009-2014 and applying time-series analytical mechanisms, we find that BitCoin market fundamentals and BitCoin attractiveness for investors have a significant impact on BitCoin price. Our estimates do not support previous findings that the macro-financial developments are driving BitCoin price.

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