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Analysis of Change of Market Value of Bitcoin Using Econometric Approach

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International Conference on Innovative Computing and Communications

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1394))

Abstract

Blockchain not only represents the latest innovation in information and communications technology (ICT) but also lays the foundation stone for the development of numerous economic models which are characterized by decentralization, privacy, security and transparency. One of the pre-eminent products of the transparent digital database of transactions that is claimed to be inviolable is the cryptocurrency. The cryptocurrency is often christened as Bitcoin since it is the most convenient and easy to use out of all and has consequently gained enormous traction in contemporary economic and business models, radically transforming payment mechanisms for the better. Numerous studies in the past have been undertaken that aim at examining the underlying reason behind Bitcoin’s value over the years. The study involves usage of econometric models to analyze how various variables at the macro- and micro-level affect the Bitcoin price trend in the long and short term. The objective of this research analysis is not only to aid investors in making prudent investment decisions in Bitcoin by closely monitoring the influential exogenous and endogenous variables but also to structurally understand the working relationship and economic consequences of these variables in the cryptocurrency space. After checking for stationarity of the variables under study, ARDL model was used followed by the Bounds F test and UECM model (where required). It was found that the variables under study explained 99.32% variation in BTC market value in the long run, some of which had a positive relationship while some had negative. Some were also found to be not significantly influencing its market value.

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Author information

Authors and Affiliations

  1. Shaheed Sukhdev College of Business Studies, Delhi, 110085, India

    Harivansh Gahlot & Irsheen Baveja

  2. Assistant Professor, Shaheed Sukhdev College of Business Studies, Delhi, 110085, India

    Gurjeet Kaur & Sandra Suresh

Authors
  1. Harivansh Gahlot
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  2. Irsheen Baveja
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  3. Gurjeet Kaur
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  4. Sandra Suresh
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Corresponding author

Correspondence to Gurjeet Kaur .

Editor information

Editors and Affiliations

  1. Maharaja Agrasen Institute of Technology, Delhi, India

    Ashish Khanna

  2. Department of Computer Science Engineering, Maharaja Agrasen Institute of Technology, Rohini, Delhi, India

    Deepak Gupta

  3. Rajnagar Mahavidyalaya, Birbhum, India

    Siddhartha Bhattacharyya

  4. Computer and Artificial Intelligence, Cairo University, Giza, Egypt

    Aboul Ella Hassanien

  5. Department of Computer Science, Shaheed Sukhdev College of Business Studies, Rohini, Delhi, India

    Sameer Anand

  6. Department of Computer Science, Shaheed Sukhdev College of Business Studies, Rohini, Delhi, India

    Ajay Jaiswal

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© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Gahlot, H., Baveja, I., Kaur, G., Suresh, S. (2022). Analysis of Change of Market Value of Bitcoin Using Econometric Approach. In: Khanna, A., Gupta, D., Bhattacharyya, S., Hassanien, A.E., Anand, S., Jaiswal, A. (eds) International Conference on Innovative Computing and Communications. Advances in Intelligent Systems and Computing, vol 1394. Springer, Singapore. https://doi.org/10.1007/978-981-16-3071-2_64

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