The SWIFT Institute has published a new research paper analysing whether Bitcoin will crowd out fiat currencies in the global community.
The research was conducted by Dirk G. Lee, University of Technology Sydney Australia. Key Findings from the brokeri bitcoin taxe include:. Virtual currencies are unlikely to crowd out fiat currencies — The price impact of speculators in virtual currencies adversely affects their property as a medium of exchange and renders a crowding out of existing fiat currencies, such as the US dollar, unlikely.
Bitcoin is mainly used as a speculative investment — An empirical analysis of Bitcoin prices and user accounts wallets supports the theoretical result bitcoin la swift finds that Bitcoin is mainly used as a speculative investment rather than a medium of exchange. No correlation exists between Bitcoin and traditional asset classes — Bitcoin returns are uncorrelated with traditional asset classes such as stocks, bonds and commodities, both in normal times and during periods of financial turmoil.
Virtual currencies pose no immediate macro risk — The design and the size of markets for virtual currencies such as Bitcoin do not pose an immediate risk for monetary, financial or economic stability.
Despite this, if the acceptance of Bitcoin or other virtual currencies increases significantly on a global scale, it could have significant bitcoin la swift on the relevance of monetary policy, as its decentralised and independent nature makes regulatory oversight difficult.