| |
| author |
Sanchit Sahni
| | title |
Future of Cryptocurrency: An empirical analysis of Bitcoin as a mode of transaction and investment.
| | abstract |
Over the years, the number of Bitcoin users have increased due to its decentralized
technology. However, recently a number of experts have begun debating Bitcoin's viability
as a global currency. This particular study contributes to this debate by closely examining
the economic purpose served by this digital currency within the financial market. By
outlining the possible uses of Bitcoin, this study performs empirical analysis to examine
the currency's ability to function as a useful mode of transaction and investment. Among
a number of considerations, this project studies the importance of Bitcoin's regulations and
security in achieving widespread economic acceptance. The research further investigates
the timeline of Bitcoin to understand the impact of these determinants on its price.
Moreover, the research considers investors' trust by studying Bitcoin's price movement
through regression analysis with time series data. Bitcoin price and return are explored as
a function of financial assets (like gold) and other related variables (like Google Trends).
Results suggested that Bitcoin indeed faces challenges as it seeks to rival more traditional
forms of money. Inconsistent regulations and security breaches pose major obstacles for
Bitcoin's acceptance as a mode of payment. The empirical analysis of Bitcoin returns
showed a weak relationship with the considered variables, highlighting the possibility of
other factors playing a part in the fluctuation of Bitcoin's returns. The results, coupled with
the high levels of volatility over time, suggest that Bitcoin is internally driven, making it a
risky mode of transaction and investment.
| | school |
The College of Liberal Arts, Drew University
| | degree |
B.A. (2019)
|
| advisor |
Marc Tomljanovich
|
| committee |
Forrest Shue
Steve Kass
|
| full text | SSahni.pdf |
| |
