Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201969
Authors: 
Gronwald, Marc
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper 7743
Abstract: 
This paper deals with cryptocurrency bubbles. First, it points out that a number of recent papers on cryptocurrency bubbles are awed due to an insufficient consideration of the fundamental value of cryptocurrencies. As even fiat money is said to exhibit features of bubbles, the same applies to cryptocurrencies. Thus, any empirical investigation into either the presence of cryptocurrency bubbles or the fundamental value of cryptocurrencies is needless. Second, the paper conducts a short empirical analysis into the relationship of the prices of Etherum and Bitcoin. Evidence of explosive periods is found in the price of Etherum even if this price is expressed in terms of Bitcoin rather than US Dollars. These periods, however, are found to be in the first half of 2016 and 2017, respectively, but not during the price peak period of Bitcoin witnessed end of 2017 and beginning of 2018.
Subjects: 
cryptocurrencies
bubbles
bitcoin
Etherum
fundamental value
intrinsic value
fiat money
JEL: 
C12
C22
E42
E52
G12
Document Type: 
Working Paper
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