Bitcoin and other virtual currencies

Inna Chetchasova

Bachelor's thesis

Abstract:

In the given Bachelor thesis various cryptocurrencies including Bitcoin will be analysed to obtain a better understanding of the way of functioning. The main aim of this thesis is to answer the question: “is a cryptocurrency able to replace fiat currencies which are commonly used as main way of payment in the modern world?” Thesis itself is divided into parts: theoretical and practical.Various books and articles of researchers in economic and legal field were reviewed for the purpose of obtaining better understanding of the topic and answering mentioned question. In result of theoretical part of thesis, it was concluded that exchange rate of cryptocurrency is strongly dependant on the social opinion and other psychological factors. However, it was decided to make a financial analysis to inquire if there are any economic factors influencing the position of virtual currency. In the practical part of this thesis, various economic tools and analyses were implemented to get a detailed view on the behaviour of cryptocurrency. An attempt to predict the future behaviour of virtual money was made by mean of timeseries forecasting. Technical analysis was performed for making an overview of the current position of electronic currency. Correlation matrix was conducted to find out whether fiat and virtual currencies depend on each other.

Keywords

Cryptocurrency, Bitcoin, Analysis

Language used: English

Date on which the thesis was submitted / produced: 15. 3. 2018

Thesis defence

• Supervisor: Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / field:
Economics and Management / Economics and Management