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Articles

Vol. 14 No. 51 (2019)

Bitcoin, a speculative bubble?Analysis of the parametric stability oftime series for the period 2009-2018

  • David Ricardo Espinoza Licona
  • Felipe A. Pérez Sosa
DOI:
https://doi.org/10.29201/rkd2hp35
Published
December 20, 2019

Abstract

Bitcoin is the most known exchange cryptocurrency today, represents a potential alternative to FIAT money. In this paper we analyze the price changes over time to determine if there is a price bubble driven by irrationality. Using parametric stability from the time series of the bitcoin price, we found the presence of a structural break during the periods of 2017 and 2018, which conduct to a change in the time series. Our findings confirm the formation of a price bubble during this period of time.

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