The economics of BitCoin price formation

This paper analyses the relationship between BitCoin price and supply-demand fundamentals of BitCoin, global macro-financial indicators and BitCoin attractiveness for investors. Using daily data for the period 2009-2014 and applying time-series analytical mechanisms, we find that BitCoin market fundamentals and BitCoin attractiveness for investors have a significant impact on BitCoin price. Our estimates do not support previous findings that the macro-financial developments are driving BitCoin price.

Publication year:2016

BOF-keylabel:yes

IOF-keylabel:yes

BOF-publication weight:0.5

CSS-citation score:4

Authors:International

Authors from:Higher Education