International Scientific Conference „Contemporary Issues in Business, Management and Education“, International Scientific Conference „Contemporary Issues in Business, Management and Economics Engineering"

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Analysis of relationship between bitcoin emission and exchange rates of selected fiat currencies
Simona Pakėnaitė, Kamilė Taujanskaitė

Last modified: 2019-05-07

Abstract


Purpose – to investigate the possible influence of bitcoins and the Blockchain on exchange rates of selected fiat currencies by using quantitative analysis methods.

Research methodology – the importance, risks/opportunities are examined by studying scientific literature regarding cryptocurrencies and decentralization. The influence of bitcoins itself is examined by using regression analysis, ANOVA, descriptive statistics, correlation matrix, and VIF.

Findings – impart negative relation between Bitcoin money supply and exchange rates (USD/EUR) and a positive relation between Bitcoin inflation rate and exchange rates (USD/EUR). However, the actual influence is too negligible to make any significant affection for the conventional financial sector yet digitalization and decentralization are imminent.

Research limitations – only a few analyses have been conducted in a quantitative manner regarding cryptocurrencies impact. The influence of cryptocurrencies increased from 2011; phenomenon lacks long time data and examples to conduct an analysis model that applies to all assumptions without exceptions.

Practical implications – enterprises can embrace decentralization and digital money to keep up with the fast-growing market changes, improve transparency, and reduce costs. Close relation with fintech is indispensable; it promotes economic growth and accelerates the development of advanced operating practices.

Originality/Value – the interest in digital money and peer-to-peer payments constantly occupy greater importance of financial market and trading manner. Their influence is widely discussed but lacks quantitative researches based on actual historical data.

 

DOI: https://doi.org/10.3846/cibmee.2019.035


Keywords


cryptocurrency, Bitcoin, Blockchain, decentralization, banking, finances

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