Bank Of Canada Paper Explores Factors Behind Bitcoin Volatility

As virtual currencies like bitcoin become more established, the exchange rate will be less affected by speculator perceptions, according to a staff working paper [PDF] on the value of virtual currencies written for the Bank of Canada by Wilko Bolt of the Netherlands Bank and Maarten R. C. van Oort of the Bank of Canada. Over time, excessive exchange rate volatility will not undermine virtual currency use.
The 40-page paper’s aim is to determine what drives the value of virtual currencies like bitcoin, which the paper underlines as the mostwell-known virtual currency. Much of the paper attempts to quantify the factors impacting virtual currency exchange rates. It documents three main determinants of virtual currency exchange rates.

This post was published at Crypto Coins News on 01/09/2016.