Flip the coin: Heads, tails or cryptocurrencies?

Please use this identifier to cite or link to this item: https://hdl.handle.net/10316/106672

Title:	Flip the coin: Heads, tails or cryptocurrencies?
Authors:	Duarte, António Manuel Portugal Murta, Fátima Teresa Sol Silva, Nuno Baetas da Vieira, Beatriz Rodrigues
Keywords:	Centralized currencies, cryptocurrencies; GARCH models; volatility
Issue Date:	7-Mar-2023
Publisher:	CeBER working Paper
Series/Report no.:	CeBER Working Paper 2022-02;
Serial title, monograph or event:	CeBER Working Paper
Place of publication or event:	https://www.uc.pt/en/uid/ceber/working-paper?key=8c2e3593
Abstract:	This paper analysis and compares the volatility of seven cryptocurrencies – Bitcoin, Dogecoin, Ethereum, BitcoinCash, Ripple, Stellar and Litecoin – to the volatility of seven centralized currencies – Yuan, Yen, Canadian Dollar, Brazilian Real, Swiss Franc, Euro and British Pound. We estimate GARCH models to analyze their volatility. The results point to a considerably high volatility of cryptocurrencies when compared to that of centralized currencies. Therefore, we conclude that cryptocurrencies still fall far short of fulfilling all the requirements to be considered as a currency, specifically regarding the functions of store of value and unit of account.
URI:	https://hdl.handle.net/10316/106672
Rights:	openAccess
Appears in Collections:	I&D CeBER - Working Papers

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