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Bitcoin Vs Gold: Which One Is The Most Powerful In Boosting The Shariah Equity Index? Global Evidence

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  • AHMAD TIBRIZI SONI Wicaksono

    (Faculty of Economics, UIN Maulana Malik Ibrahim Malang, Indonesia)

  • ARIEF Mufraini

    (Faculty of Economics and Business, UIN Syarif Hidayatullah Jakarta, Indonesia)

  • TITIS Miranti

    (Faculty of Economics, UIN Maulana Malik Ibrahim Malang, Indonesia)

  • MUHAMMAD KHAERUL Muttaqien

    (Faculty of Islamic Religion, Universitas Muhammadiyah Jakarta, Indonesia)

Abstract

The study explores the most powerful between Bitcoin and Gold in boosting the Shariah Equity Index in Malaysia, the United Arab Emirates, China, Indonesia, The United States of America (USA), Japan, Oman, and Saudi Arabia in the short and long term. The study uses analysis of the first and second stages of the Granger Causality Test and Vector Error Correction Model (VECM), then Impulse Response Function (IRF) and Variance Decomposition (VDC) over the period 2013 to 2021. The finding proves that only Gold can affect the Islamic Equity Index in the short term, then Bitcoin and Gold proved to contribute equally to the Islamic Equity Index in the long term. However, Bitcoin has the potential to provide positively correlated shocks and dominate the value of Islamic equity indices in the long term. The results demonstrate that government intervention is decisive in maintaining the stability of the Shariah Equity Index from future Bitcoin threats. The study's finding has practical implications for Islamic capital market Investors, Managers, and Authorities.

Suggested Citation

  • AHMAD TIBRIZI SONI Wicaksono & ARIEF Mufraini & TITIS Miranti & MUHAMMAD KHAERUL Muttaqien, 2023. "Bitcoin Vs Gold: Which One Is The Most Powerful In Boosting The Shariah Equity Index? Global Evidence," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(1), pages 5-36, April.
    • Handle: RePEc:blg:journl:v:18:y:2023:i:1:p:5-36
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    References listed on IDEAS

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