Comparative Analysis of Bitcoin and Traditional Currencies: Can Bitcoin Provide a Global Hedge against Inflation of Flat Currencies?

Kristýna Houšková

Bakalářská práce

Abstract:

The main goal of the following thesis is to answer the question of whether Bitcoin is reliable enough to provide an alternative against the inflation of flat currencies or not. The author pursues the goal of answering the aforementioned question based on the empirical analysis performed by the author in her practical part. In addition to that, the author also seeks to describe the development of Bitcoin cryptocurrency over the course of the last 5 years. The main approach selected by the author is quantitative with numerous techniques that will help the author to answer the main research question. The author incorporates volatility analysis, trend analysis, and correlation analysis as the main techniques. All in all, based on her empirical analysis and the comparison of the results of the author’s study with other academists and researchers, the author can conclude that as of the beginning of 2023, there is no way that Bitcoin or any other cryptocurrency can provide a hedge against the global inflation due to high volatility of crypto assets and no regulation, which is a crucial component.

Keywords

Bitcoin, inflation, depreciation, appreciation, fiat money

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 16. 3. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 9. 2. 2024
• Vedoucí: Ing. Olga Regnerová, Ph.D.
• Oponent: Gabriela Kukalová, MBA Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Bakalářský studijní program:
Business Administration