Abstract
Since the cryptocurrency, bitcoin, was launched in 2009, trading of bitcoin has been booming, and bitcoin is now increasingly recognized as an investment asset. However, concerns have arisen about the stability of this form of currency due to its volatility. Evaluation is necessary of bitcoin as an asset compared to other financial assets. In this study, we analyze information flows between bitcoin and other financial assets in 27 countries, demonstrating that bitcoin has a high correlation with other financial assets in many countries. Further, we observe a directional pattern in information flows according to the economic conditions in each country (i.e., developed and emerging markets). Our research shows that bitcoin is proactively influenced by changes in exchange rates and stocks in developed markets compared to emerging markets, and that changes in the price of bitcoin have no prior effect on indexes of financial assets in most countries.
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