Financial shielding that Bitcoin grants to capitals in the world

  • Received April 30, 2019;
    Accepted July 12, 2019;
    Published August 2, 2019
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.16(3).2019.06
  • Article Info
    Volume 16 2019, Issue #3, pp. 49-61
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    4 articles
  • Funding data
    Funder name: Universidad Técnica de Ambato
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Market forces are not the only influence on currency exchange rates. They can change due to monetary and fiscal policies among other international repercussions. Bitcoin, for its independence from all the central banks worldwide, has a natural shield that will change the direction in the economic policy of the industrialized countries. The research aim is to analyze the influence that indicators and financial assets can have on Bitcoin. The study tries to confirm the reasons why it has begun to be the solution in economies with unstable currencies.
The behavior of the different agents appears as the core of the study. It is creating a backward 5-year work horizon. The data are continuous values, and they are the numerical variables for Pearson correlation analysis. The time series in fixed periods are the basis for the study of projections. Besides, the Relative Strength Index or Relative Strength Index called Welles Wilder is useful in the research. Bitcoin does not get influenced by the Dow Jones, gold price, and Gross Domestic Product (GDP). The independence in the creation of this cryptocurrency could in the long term end up turning it into a currency of world use. As a result, the understanding and management of this cryptocurrency could generate new ways of building the future monetary system. The new direction of the economy will be registered in the blockchain and not in a central bank.

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  • JEL Classification (Paper profile tab)
    G11, G14, G15, G23
  • References
    51
  • Tables
    8
  • Figures
    4
    • Figure 1. AFC daily
    • Figure 2. AFC monthly
    • Figure 3. Exponential smoothing daily
    • Figure 4. Trends of Bitcoin
    • Table 1. Price of Bitcoin in 2009–2018
    • Table 2. Historical price of Bitcoin
    • Table 3. Dow Jones quote
    • Table 4. World GDP in USD
    • Table 5. Gold price
    • Table 6. Increase and decrease in prices
    • Table 7. Correlation statistics
    • Table 8. Correlation coefficient