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Bitcoin: The Road to Hell Is Paved With Good Promises

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  • Sofoklis Vogiazas
  • Constantinos Alexiou

Abstract

In this paper, by using econometric techniques we provide evidence that bitcoin exhibited the formation of speculative bubble in 2017. To conceptually rationalize the results, we delve into the extant theoretical approaches developed by Kindleberger's (1978) speculative bubbles and Minsky's (1992) financial instability hypothesis. Certainly, bitcoin has spurred a revolution in payment technology that, if treated cautiously can facilitate financial intermediation and inclusion. Ultimately, whether or not bitcoin constitutes a bubble is a decision for investors as the road to hell is paved with good promises.

Suggested Citation

  • Sofoklis Vogiazas & Constantinos Alexiou, 2019. "Bitcoin: The Road to Hell Is Paved With Good Promises," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(1), February.
    • Handle: RePEc:bla:ecnote:v:48:y:2019:i:1:n:12119
    DOI: 10.1111/ecno.12119
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    References listed on IDEAS

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