Bitcoin as a new currency.

Brzeszczyński, Janusz; Gajdka, Jerzy; Schabek, Tomasz

Abstract

Bitcoin is the most popular financial instrument within the new cryptocurrencies class, which emerged in the wake of the financial crisis of 2007/2008. The purpose of this paper is to provide an analysis of Bitcoin from the perspective of the Polish market investor. More specifically, the aim of the empirical research presented in this study has been twofold: (1) comparison of Bitcoin with other currencies using returns and risk captured by the standard deviation of returns and (2) assessment of the sensitivity of the BTC/PLN exchange rate to the NBP’s monetary policy announcements. Bitcoin appears to be weakly related to other currency exchange rates against the Polish zloty and the monetary policy announcements of the National Bank of Poland (NBP) have, effectively, no influence on the determination of the BTC/PLN exchange rate. We discuss extensively the Bitcoin as a new asset on the financial market and we present the investigation of the BTC/PLN reactions to the monetary policy announcements in Poland, which is a novel analysis for this instrument using the Polish market data.

Citation

BRZESZCZYŃSKI, J., GAJDKA, J. and SCHABEK, T. 2020. Bitcoin as a new currency. Folia oeconomica stetinensia [online], 20(2), 49-65. Available from: https://doi.org/10.2478/foli-2020-0035

• Journal Article Type: Article
• Acceptance Date: Dec 29, 2020
• Online Publication Date: Jan 29, 2021
• Publication Date: Dec 31, 2020
• Deposit Date: Jan 16, 2023
• Publicly Available Date: Jan 16, 2023
• Journal: Folia Oeconomica Stetinensia
• Electronic ISSN: 1898-0198
• Publisher: De Gruyter
• Peer Reviewed: Peer Reviewed
• Volume: 20
• Issue: 2
• Pages: 49-65
• DOI: https://doi.org/10.2478/foli-2020-0035
• Keywords: Bitcoin; Cryptocurrency; Foreign exchange rates; National Bank of Poland (NBP)
• Public URL: https://rgu-repository.worktribe.com/output/1848983