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The Bitcoin: to be or not to be a Real Currency?

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  • Janson, Nathalie
  • Karoubi, Bruno

Abstract

The present article focuses on whether the Bitcoin shows sign of increased confidence as a value storage vehicle, a prerequisite to becoming a fully fledged currency. Using Bloomberg data over the period 2008-2017, we find a cointegration relationship between the dollar prices of Bitcoin, Gold and Swiss Franc. The two latter assets are classic safe haven assets, suggesting that at least some Bitcoin buyers are interested in value storage and boding well for its future adoption rate.

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  • Janson, Nathalie & Karoubi, Bruno, 2021. "The Bitcoin: to be or not to be a Real Currency?," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 312-319.
    • Handle: RePEc:eee:quaeco:v:82:y:2021:i:c:p:312-319
    DOI: 10.1016/j.qref.2021.09.005
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    References listed on IDEAS

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    Cited by:

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    3. Chowdhury, Mohammad Ashraful Ferdous & Abdullah, Mohammad & Masih, Mansur, 2022. "COVID-19 government interventions and cryptocurrency market: Is there any optimum portfolio diversification?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Bitcoin; Safe haven; Private currency; Medium of exchange; Store of value;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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