The Economics of BitCoin Price Formation
Economics
2014-05-20 v1 General Finance
Abstract
This paper analyses the relationship between BitCoin price and supply-demand fundamentals of BitCoin, global macro-financial indicators and BitCoin attractiveness for investors. Using daily data for the period 2009-2014 and applying time-series analytical mechanisms, we find that BitCoin market fundamentals and BitCoin attractiveness for investors have a significant impact on BitCoin price. Our estimates do not support previous findings that the macro-financial developments are driving BitCoin price.
Keywords
Cite
@article{arxiv.1405.4498,
title = {The Economics of BitCoin Price Formation},
author = {Pavel Ciaian and Miroslava Rajcaniova and d'Artis Kancs},
journal= {arXiv preprint arXiv:1405.4498},
year = {2014}
}
Comments
Key words: BitCoin, exchange rate, supply-demand fundamentals, financial indicators, attractiveness JEL classification: E31; E42; G12