Bitcoin price as one of basic cryptocurrencies in relation to the basic stock market's indicators

Antonín Korauš (), Miroslav Gombár (), Alena Vagaská (), Radovan Bačík (), Peter Korba () and Filip Černák ()
Additional contact information
Antonín Korauš: Academy of the Police Force in Bratislava, Slovakia
Miroslav Gombár: University of Prešov, Slovakia
Alena Vagaská: Technical University of Košice, Slovakia
Radovan Bačík: University of Prešov, Slovakia
Peter Korba: Technical University of Košice, Slovakia
Filip Černák: University of Prešov, Slovakia

Entrepreneurship and Sustainability Issues, 2021, vol. 9, issue 2, 552-569

Abstract: During 2020, factors such as the global pandemic, financial uncertainty and the US election saw an increase in the correlation between bitcoin and gold and the stock market. Both bitcoins and gold rose sharply during 2020, thanks to the relentless press of fiat money by governments and central banks that intend to keep their economies afloat as a result of the coronavirus pandemic. As digital gold, BTC appeals to the cashless Internet economy largely for its features, which include continuous price transparency and a lack of restrictions, disruptions or third-party oversight. The paper focuses on the analysis and identification of the relationship between the value of basic cryptocurrencies and gold price movements, as well as the research hypothesis that the value of the most known and used cryptocurrency bitcoin (BTC) increases with the rising price of gold - a special commodity that serves several functions of the world economy. This issue is currently gaining more and more attention also in context of risk management which is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities and mobile commerce in the aspect of the impact of modern technologies and mobile communication platforms on consumer behavior and consumer preferences. Innovatively, we have made our observations of the price of bitcoin in relation to price fluctuations in the gold markets in order to develop a predictive model for simulating the development of the price of bitcoin. The mathematical model was developed on the basis of statistical analysis of the observed data.

Keywords: bitcoin; Bitcoin price; gold price; cryptocurrency; virtual money; financial risk; risk management; electronic and mobile commerce; modern technologies; consumer behavior; consumer preferences (search for similar items in EconPapers)
JEL-codes: D30 E30 F39 G20 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/34/Korau ... rkets_indicators.pdf (application/pdf)
https://jssidoi.org/jesi/article/932 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:9:y:2021:i:2:p:552-569

DOI: 10.9770/jesi.2021.9.2(36)

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().