BITCOIN VS GOLD: WHICH ONE IS THE MOST POWERFUL IN BOOSTING THE SHARIAH EQUITY INDEX? GLOBAL EVIDENCE

TIBRIZI SONI Wicaksono Ahmad, Mufraini Arief, Miranti Titis and KHAERUL Muttaqien Muhammad
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TIBRIZI SONI Wicaksono Ahmad: Faculty of Economics, UIN Maulana Malik Ibrahim Malang, Indonesia
Mufraini Arief: Faculty of Economics and Business, UIN Syarif Hidayatullah Jakarta, Indonesia
Miranti Titis: Faculty of Economics, UIN Maulana Malik Ibrahim Malang, Indonesia
KHAERUL Muttaqien Muhammad: Faculty of Islamic Religion, Universitas Muhammadiyah Jakarta, Indonesia

Studies in Business and Economics, 2023, vol. 18, issue 1, 5-36

Abstract: The study explores the most powerful between Bitcoin and Gold in boosting the Shariah Equity Index in Malaysia, the United Arab Emirates, China, Indonesia, The United States of America (USA), Japan, Oman, and Saudi Arabia in the short and long term. The study uses analysis of the first and second stages of the Granger Causality Test and Vector Error Correction Model (VECM), then Impulse Response Function (IRF) and Variance Decomposition (VDC) over the period 2013 to 2021. The finding proves that only Gold can affect the Islamic Equity Index in the short term, then Bitcoin and Gold proved to contribute equally to the Islamic Equity Index in the long term. However, Bitcoin has the potential to provide positively correlated shocks and dominate the value of Islamic equity indices in the long term. The results demonstrate that government intervention is decisive in maintaining the stability of the Shariah Equity Index from future Bitcoin threats. The study's finding has practical implications for Islamic capital market Investors, Managers, and Authorities.

Keywords: Bitcoin; gold; shariah equity index; investment (search for similar items in EconPapers)
Date: 2023
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