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Bitcoin as digital money: Its growth and future sustainability

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  • Pradipta Kumar SAHOO

    (Indian Institute of Technology Hyderabad, India)

Abstract

This paper examines the comprehensive idea about the growth and future sustainability of bitcoin as a cryptocurrency. The transaction volume of bitcoin is used as the growth of the bitcoin and the bitcoin log return is used for testing the volatility which is helpful for the future sustainability of bitcoin. The study period says that the growth of bitcoin’s transaction volume is an increasing trend as more day to day transaction is minting with the exchange of Bitcoin. The study also uses ARCH & GARCH methodology to know the volatility of this emerging digital currency, and the GARCH result shows that it is a highly volatile currency. As a result, most of the governments have not given their legal status for the use of bitcoin in their country. But if bitcoin will be stable in the future, then it is easily accepted through worldwide and in the long run, people will have more faith in the cryptocurrency technology and its usability.

Suggested Citation

  • Pradipta Kumar SAHOO, 2017. "Bitcoin as digital money: Its growth and future sustainability," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(613), W), pages 53-64, Winter.
    • Handle: RePEc:agr:journl:v:4(613):y:2017:i:4(613):p:53-64
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    References listed on IDEAS

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    7. Jamal Bouoiyour & Refk Selmi & Aviral Kumar Tiwari, 2015. "Is Bitcoin Business Income Or Speculative Foolery? New Ideas Through An Improved Frequency Domain Analysis," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-23.
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    Cited by:

    1. Lee, Yen-Sheng & Vo, Ace & Chapman, Thomas A., 2022. "Examining the Maturity of Bitcoin Price through a Catastrophic Event: The Case of Structural Break Analysis During the COVID-19 Pandemic," Finance Research Letters, Elsevier, vol. 49(C).
    2. Pınar Kaya Soylu & Mustafa Okur & Özgür Çatıkkaş & Z. Ayca Altintig, 2020. "Long Memory in the Volatility of Selected Cryptocurrencies: Bitcoin, Ethereum and Ripple," JRFM, MDPI, vol. 13(6), pages 1-21, May.
    3. Beatriz Mota Aragón & José Antonio Núñez Mora, 2019. "Estimación de la distribución multivariada de los rendimientos de los tipos de cambio contra el dólar de las criptomonedas Bitcoin, Ripple y Ether," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(3), pages 447-457, Julio - S.
    4. Do-Hyung Park, 2019. "Virtuality Changes Consumer Preference: The Effect of Transaction Virtuality as Psychological Distance on Consumer Purchase Behavior," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    5. Naeyoung Kang & Jungmu Kim, 2019. "An Empirical Analysis of Bitcoin Price Jump Risk," Sustainability, MDPI, vol. 11(7), pages 1-11, April.

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