Analyzing Bitcoin Price and Investor Attractiveness

In the midst of financial turmoil in 2008, the pseudonymous savant named ’Satoshi Nakamoto’ introduced world’s first decentralized peer-to-peer payment system, Bitcoin. Whilst, this nascent innovation is seldom regarded as a ”currency”, its potential use as a medium of exchange remains negligible. This paper examines the interdependencies among various determinants of Bitcoin price, in an attempt to identify some truth about its value. The findings from our Vector Autoregressive(VAR) model suggest that the there exists a bidirectional granger-causality relationship between the Bitcoin price and search query volume