What Are the Potential Factors That Will Affect the Value of Bitcoin in the U.S.?

DOI

10.2991/aebmr.k.210917.067How to use a DOI?

Keywords

Bitcoin

Abstract

As a representation of Cryptocurrency, Bitcoin may have the potential to become a reliable currency due to its characteristics of decentralization and built-in scarcity. The evolution of Bitcoin shows some similarities with gold, that is an inflation hedge with a stable price. The purpose of this study was to determine what factors might affect the value of Bitcoin, which cause it eventually circulate with a stabilized price and become a future gold-like commodity under a macroeconomic scope. This paper conducted a generalized linear regression analysis of the Bitcoin price and gold price on the inflation rate, interest rate, and current account by using RStudio. Based on the United States annual data, this paper found evidence that the U.S. inflation rate, U.S. interest rate, and U.S. current account did not have significant effects on the gold price. However, the Bitcoin price was significantly affected by the U.S. inflation rate and U.S. interest rate. This implied that Bitcoin was not as stable as gold at current stage, but one possible speculation is that Bitcoin has the potential to counter inflation in the future.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Kaibing Yang
AU  - Ziyan Zhang
PY  - 2021
DA  - 2021/09/18
TI  - What Are the Potential Factors That Will Affect the Value of Bitcoin in the U.S.?
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 436
EP  - 441
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.067
DO  - 10.2991/aebmr.k.210917.067
ID  - Yang2021
ER  -