Can Bitcoin Ever Be An International Currency?
Can Bitcoin Ever Be An International Currency?
Yazarlar:
Most Gulnahar Banu
Yayıncı:
International Congress on Afro - Eurasian Research V
Disiplin:
Islamic Finance,eBusiness
Konu:
Islamic Finance,eBusiness
The purpose of this study is to analyze the potentiality of bitcoin as an international currency. For this purpose, at first, the properties of an international currency are discussed. Later, one of the property is tested by applying VAR model. The dependency of bitcoin is one of the controversial topic regarding bitcoin. To test this property, the relationship between bitcoin and dollar parity is analyzed by applying VAR model with daily data from 17-8-2010 to 29-3-2018. It is found that the coefficients are not significant and there is no causal relationship between variables of interest. In addition to this, when subject to shock the response is not remarkable.