The Impact of Unsystematic Factors on Bitcoin Value

Zvonko Merkaš and Vlasta Roška
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Zvonko Merkaš: Libertas International University, Trg J. F. Kennedy 6b, 10 000 Zagreb, Croatia
Vlasta Roška: Libertas International University, Trg J. F. Kennedy 6b, 10 000 Zagreb, Croatia

JRFM, 2021, vol. 14, issue 11, 1-17

Abstract: The results of empirical analyses confirm that analysed unsystematic factors, the Stock-to-Flow index (S2F), and information on the Bitcoin (BTC) are directly correlated with BTC values. These results are expected and in line with the economic theory; however, this research paper aimed to investigate the impact of unsystematic factors on the value of decentralised virtual cryptocurrency BTC. Its aim was also to analyse the reasons for significant oscillations of market values in relation to the S2F and S2FX model and thus confirm the reliability of these models in the estimation of BTC value. The research further confirms the strong influence of non-technical information directly linked with the BTC. The limitations of this paper are the lack of possibilities for examining the impact of non-technical information affecting the Bitcoin price deviation regarding the S2F model. In addition to all mentioned limitations, the research results indicate the relevance of the S2F and S2FX models and show a strong impact of (half) the information on the value of cryptocurrencies.

Keywords: Bitcoin (BTC); Stock-to-Flow (S2F); S2FX; unsystematic factors (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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