Through our second year at university we were tasked with conducting extensive analysis into a topic of our choice, in this case we picked cryptocurrencies, namely Bitcoin. Our report gives the reader a look at the future of Bitcoin and the possibility of it being used as a fully fledged currency such as the USD or the GBP.
In this paper we talk about the functions of money and see whether or not Bitcoin fits these criteria, we then go on to discuss the literature surrounding cryptocurrencies where we take a look at many different views surrounding Bitcoin’s legitimacy as a currency. After this we used an ARCH/GARCH estimation in order for us to acquire an insight into Bitcoin’s volatility and we provide an interpretation of our results alongside a conclusion.
We hope you enjoy the read, you can download a copy of the report in the link below: