A wide range of virtual currencies have emerged over the past decade, such as Bitcoin, Lite Coin, PeerCoin, Aurora coin, Dogecoin, and Ripple. The most important of these is Bitcoin.

In fact, this article allows to analyze the functionalities of Bitcoin as a new world currency, as well as its characteristics which can hinder its use as a medium of exchange, unit of account and store of value by comparing Bitcoin to standard currencies.

Since its introduction in 2009, Bitcoin has also been characterized by a significant increase in the number of transactions and market capitalization, which exceeded 5 billion US dollars in 2015.

This leads to extreme price volatility of Bitcoin against currencies. standards. In order to understand the reasons for such price fluctuation, the authors try to identify the factors of Bitcoin price formation.

 Ciaian, Rajcaniova and Kancs (2016) analyze time series using daily data for the period 2009-2014. They suggest that Bitcoin's attractiveness indicators and supply and demand function are the most powerful drivers of Bitcoin prices.

 On the other hand, macro-financial developments do not determine the price of Bitcoin in the long term. Thus, the authors find that Bitcoin price fluctuations are associated with speculative investment decisions.

According to what proceeds, Bitcoin will not be able to compete with standard currencies. So the question we can ask : can Bitcoin become a global currency?
check out https://roz-key.blogspot.com/2022/05/the-digital-agenda-of-virtual.html

This article examines extreme movements in the price of Bitcoin. Since the inception of Bitcoin in 2010 the price of Bitcoin has shown wild swings with impressive booms and busts.
Gangwal and Longin  used extreme value theory to study the statistical distribution of extreme price movements And calculate risk measures commonly used by financial institutions in risk and asset management. they also drew some conclusions about Bitcoin's status as a currency or speculative asset which is important for practical matters.

The objective of this article is to introduce some statistical price properties of Bitcoin focusing on its price movements.
So, the problem that we must find an answer to this question : Is Bitcoin a currency or a speculative asset?
 
Source : https://roz-key.blogspot.com/2022/06/extreme-movements-in-bitcoin-prices.html