BITCOIN BUBBLE insane income GUILD

The present study addresses one of the most problematic phenomena: Bitcoin
price. We explore the Granger causality for two relationships (Bitcoin price and transactions;
Bitcoin price and investors’ attractiveness) from a frequency domain perspective using
Breitung and Candelon’s (2006) approach. Intuitively, this research gauges empirically the
causal links between these variables unconditionally on the one hand and conditionally to the
Chinese stock market and the processing power of Bitcoin network on the other hand. The
observed outcomes reveal some differences with respect to the frequencies involved,
highlighting the complexity of assessing what Bitcoin looks like and the difficulty to gain
clearer insights into this nascent crypto-currency. Beyond the nuances of short-, medium- and
long-run frequencies, this paper confirms the extremely speculative nature of Bitcoin without
neglecting its usefulness in economic reasons (trade transactions). The consideration of the
Chinese market index and the hash rate has led to solid and unambiguous findings connecting
further Bitcoin to speculation.