Bitcoin: A New Asset Class?

Rr Widad Nawa Huwaida,Taofik Hidajat

doi:10.24856/mem.v35i2.1223

Abstract

<p>This study aims to examine the effect of stock prices, exchange rates, and gold prices on the Bitcoin price. The data used are the IDX Composite, the Rupiah/ IDR exchange rate, and the daily gold price from July 19, 2010, to December 31, 2018. Regression equation results show that stock prices, exchange rates, and the gold price had a positive effect on Bitcoin price. Changes will follow changes that occur in stock prices, exchange rates, and gold prices in the price of Bitcoin in the same direction. Bitcoin is considered the same as other assets that are worth having in the investment portfolio.</p>

Highlights

Bitcoin is a cryptocurrency, a digital currency that uses the concept of cryptography as a transaction security system that is attracting attention and is proliferating after the 2008 global economic crisis (Sukamulja & Sikora, 2018)
FTSE 100, Brent Oil and CMCI do not affect the value of Bitcoin, both in the long and short term
The DW value in the model is in the area between dU = (1.73) and 4-du (2.26), which means there is no autocorrelation. These results indicate that the stock price index (Ln_X1), the exchange rate of IDR / USD (Ln_X2) and the price of gold (Ln_X3) have a positive effect on the price of Bitcoin

Summary

Introduction

A digital currency that uses the concept of cryptography as a transaction security system that is attracting attention and is proliferating after the 2008 global economic crisis (Sukamulja & Sikora, 2018). Bitcoin is becoming increasingly popular because of the easy transaction process and no (inexpensive) administrative costs (Sukamulja & Sikora, 2018). The demand for Bitcoin continues to increase, the amount will not be increased because it is only limited to 21 million (Nakamoto, 2008). Such high demand is influenced by the acp-ISSN: 0854-1442 (Print) e-ISSN: 2503-4464 (Online) ceptance of several countries that legalize Bitcoin as a means of payment, such as the United States, Japan, and Finland

Objectives

Methods

Findings

Discussion

Conclusion