Bitcoin Compared on Price, Liquidity and Volatility: Crypto “Currencies” or an Asset Class of Their Own?
Bitcoin Compared on Price, Liquidity and Volatility: Crypto “Currencies” or an Asset Class of Their Own?

Author(s): Peter Haiss, Jakob Schmid-Schmidsfelden
Subject(s): Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Published by: Masarykova univerzita nakladatelství
Keywords: blockchain; Bitcoin Cash; cryptocurrencies; liquidity; monetary velocity;
Summary/Abstract: In comparing Bitcoin to other cryptocurrencies, we analyze whether these can become a viable alternative to fiat currencies. In the theoretical part we assess if these embody the main functions of a currency (Krugman, 1984). The empirical part analyzes the price development, liquidity and velocity of Bitcoin in comparison to the major other cryptocurrencies in 2017. We conclude that Bitcoin Cash, a cryptocurrency that evolved during a hard fork of Bitcoin, may develop into sharing features of a global currency. Currently cryptocurrencies are rather tokens and a highly volatile asset class of their own.

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