Flip the Coin: Heads, Tails or Cryptocurrencies?
Flip the Coin: Heads, Tails or Cryptocurrencies?
Author(s): António Portugal Duarte, Fátima Sol Murta, Nuno Baetas da Silva, Beatriz Rodrigues VieiraSubject(s): Methodology and research technology, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: centralized currencies; cryptocurrencies; GARCH models; volatility;
Summary/Abstract: This paper analysis and compares the volatility of seven cryptocurrencies – Bitcoin, Dogecoin, Ethereum, BitcoinCash, Ripple, Stellar and Litecoin – to the volatility of seven centralized currencies – Yuan, Yen, Canadian Dollar, Brazilian Real, Swiss Franc, Euro and British Pound. We estimate GARCH models to analyze their volatility. The results point to a considerably high volatility of cryptocurrencies when compared to that of centralized currencies. Therefore, we conclude that cryptocurrencies still fall far short of fulfilling all the requirements to be considered as a currency, specifically regarding the functions of store of value and unit of account.
Journal: Scientific Annals of Economics and Business
- Issue Year: 70/2023
- Issue No: Special
- Page Range: 1-18
- Page Count: 18
- Language: English