Cryptocurrency Analysis: Bitcoin and its Applications

This assignment delves into the multifaceted world of cryptocurrencies, with a focus on Bitcoin. It explores its potential use in money laundering and funding violent jihad, examines monopolistic practices within the Bitcoin ecosystem, discusses high-frequency trading analysis, and investigates denial-of-service attacks. Additionally, it covers tax implications and the practical materiality of Bitcoin, as well as the reasons behind its value and price fluctuations, concluding with an analysis of its historical data.

BITCOIN AS A REAL MONEY: A
STATISTICAL APPROACH

ACKNOWLEDGEMENT
I am grateful to all people who gave me huge support and suggestions in respect to completion of
research study which is based on factors affecting Bitcoin price. I am thankful to my mentor who
teach me lots of ways by following which disseration can be prepared in better way. Without
support of mentor it was not possible for me to carry out this research study to final stage.
Finally, I am greateful to all those that support me in completion of my work.

ABSTRACT
Current research study is based on Bitcoin which is one of well known crypto currency and is
used at wide level. Present research is focusing on identifying various variables that have impact
on Bitcoin in terms of price. It is identified on analysis of results that price of Bitcoin is affected
by value of USD. Number of vendors, people doing trasactions and inflation also have impact
on Bitcoin. Thus, after considering number of factors investment must be made in Bitcoin. It is
also identified that in upcoming time period demand of Bitcoin will increase and along with this,
number of mining firms will enhanced. Thus, it can be said that more and more use of Bitcoin
will takes place for making transactions.

TABLE OF CONTENTS
ACKNOWLEDGEMENT...............................................................................................................2
ABSTRACT....................................................................................................................................3
CHAPTER1:INTRODUCTION......................................................................................................1
1.1 Background of study..............................................................................................................1
1.2 Problem statement.................................................................................................................2
1.3 Research questions.................................................................................................................2
1.4 Research aims and objectives................................................................................................3
1.5 Rationale of study..................................................................................................................3
1.6 Significence of research study...............................................................................................4
1.7 Strcuture of report..................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1Theoritical framework............................................................................................................7
2.2.2 List of cyptocurrencies introduced...................................................................................10
2.2.3 To identify trends in number of transaction of Bitcoin which will reflect number of
mining firms increase or decrease across the globe...................................................................13
2.2.4 Relationship between price of bitcoin and vendors..........................................................17
2.2.5 Inflation and bitcoin price.................................................................................................18
CHAPTER 3:RESEARCH METHODOLOGY............................................................................26
3.1 Research introduction..........................................................................................................26
3.2 Research design...................................................................................................................26
3.3 Research approach...............................................................................................................27
3.4 Research philosophy............................................................................................................27
3.5 Data collection.....................................................................................................................28
3.6 Data analysis........................................................................................................................28

3.7 Research limitation..............................................................................................................29
3.8 Ethical considerations..........................................................................................................30
CHAPTER 4: DATA ANALYSIS SECTION..............................................................................31
To identify relationship between Bitcoin and USD...................................................................31
Identifying number of cryptocurrencies introducted.................................................................37
To identify number of transaction of Bitcoin which will reflect number of mining firms........38
To identify relationship between inflation and price of Bitcoin................................................40
CHAPTER 5: DISCUSSION........................................................................................................43
CHAPTER 6: CONCLUSION......................................................................................................47
REFERENCES..............................................................................................................................50

CHAPTER1:INTRODUCTION
1.1 Background of study
Technology is evolving at rapid pace across the globe. In past few years lots of work is done on development of technology.
Bitcoin is one of the electrtonic currency that is used at wide scale across the globe. Before going in to deep research on Bitcon it is
necessary to develop broad understanding about same. Under this electronic mode of payment online currency is issued that remain
in our account. Online payments are made by the business firm and currency is not related to specific government or central bank.
Under electronic mode of payment that is done through Bitcoin there are some entities like miners (Simser, 2015). These are those
entitiesd that enter in to network and try to develop block of bitcoin . In this regard they needs do tough job. They need to develop
hash below threshold limit that is commonly determined for all miners that are operating in the network of bitcoin. When hash
value is less then threshold value one can successfully build a block and add same to the block chain. Block basically refers to the
vector which contains list of the current transactions that are done by the people through Bitcoin ( What is Crypto currency
everything you need to know, 2017). Miners verify the transactions that are covered in block and in return receive bitcoin’s and
transaction fee which is their income. This is the entire process that is going on while transaction happened through bitcoin. Like bank
account each holder of bitcoin have some unique number that is encrypted and linked to specific algorithm ( Reynolds and Angela,
Irwin., 2017). Algorithms are basically set of instructions that execute specific thing on execution of command. When anyone enter
key in respect to account through algorithm verification is done and it is ensured that data will remain safe and no one can steal
same easily. Thus, it can be said that payment through bitcoin is safe. In the current report , different aspects of bitcoin are covered.
In the report detail analysis of importance and relevance of bitcoin as payment method is done. Apart from this, application of
bitcoin technology is analyzed in terms of its use that is done by the people and number of countries that are accepting bitcoin for
making and receiving payment. Apart from this, in the report it will be identified whether regulation related to bitcoin is developed. It
can be said that scope of the present research study is very wide in nature and in future lots of new things can be observed in respect
to bitocoin (Ram, Maroun and Garnett, 2016). Inflation is the factor that to great extent affects the nation and economic growth as
1 | P a g e

well as currency exchange rate. Thus, in the research study an attempt will be made to identify the impact that inflation rate have on
the bitcoin. USD also affects the currency value and in the present research study an attempt will be made to identify the relationship
between bitcoin value and currency. It can be said that there is significent importance of bitcoin for the business firms. There are
lots of things that can be covered in research about bitcoin. With passage of time use of Bitcoin is increasing across the nations. Now
more and more vendors are accepting payments in the mentioned currency. Due to this reason demand for same increased in the
market (Coins, 2017). It can be said that time will come when more and more payments will be made and accepted in Bitcoin in the
market. With passage of time period it is very important that number of dealers that execute trade related to Bitcoin must be increase.
This is because more will be dealers less will be control of same on the network which is very important in the current time period.
This will prove good for the Bitcoin across the globe.
1.2 Problem statement
Bitcoin is one of the most popular crypto currency in the world as its use is increasing at fast rate. Most of people does not
have strong knowledge of Bitcoin and due to this reason they think that it would not be better to make investment in mentioned crypto
currency and they avoid making payment or accepting payment in Bitcoin. There are number of things about Bitcoin that people does
not know and due to this reason they avoid making use of Bitcoin. This is the major problem that is associated with the Bitcoin and in
response to this in the current research study different aspects of crypto currency are analyzed in the report. In this regard, relationship
between price of Bitcoin and USD is meaured and in this regard data is gathered and same is analyzed by using statistical tools. Rate
at which transactions in Bitocoin increased are also analyzed and conclusion is prepared. Interlationship between price of Bitcoin and
inflation is also explored. In this way, different aspects of Bitcoin are measured and problem is addressed.
1.3 Research questions
 What is the relationship between Bitcoin and USD?
 What is the rate at which ceypto currency are issued in the market?
 What are the trends in the market in respect to Bitcoin?
2 | P a g e

 What is the relationship between price of Bitcoin and number of vendors?
 What is the relationship between inflation and price of Bitcoin?
1.4 Research aims and objectives
Aim: To developing broad understanding of Bitcoin and exploring trends related to crypto currency.
Objectives:
 To identify relationship between Bitcoin and USD.
 To identify number of crypto currency introduced.
 To identify trends in number of transaction of Bitcoin which will reflect number of mining firms increase or decrease across
the globe.
 To identify relationship between price of Bitcoin and number of vendors.
 To identify relationship between inflation and price of Bitcoin.
1.5 Rationale of study
It is important to identify the reasons due to which research study must be carried out in the specific domain. As this reflect the
importance of the present research study. It was important to perform the current research study because bitcon is in market for more
then 5 years but today also it is not use as a popular medium for making a payment. Transaction cost is low and instant payment
happened then also bitcoin does not achieve a huge success (S.M. Irwin. and Milad, 2016). Thus, it is very important identify and
evaluate bitcoin on number of factors. This will reflect the reasons due to which bitcoin achieve success of failure in the market. There
are lots of positive sides of the bitcoin as a a currency. Like it is a single currency that is accepted across the nations. Thus, one does
not need to care or concern about exchange rates in the market. Then also it failed to achieve expected success in the market. Thus, it
was importnant to conduct the present research study because by doing so different aspects that are related to bitcoin can be covered
easily add deep analysis of same can be done in systmeatic manner. Thus, it can be said that there is significent importance of the
present research study for varied entities. In the current time period while doing trade with any nation companies have to consider
3 | P a g e

exchange rate. Fluctuation in these rates significently affect the profit that firms earned in their business. Bitcoin is the currency whose
value is increasing rapidly and due to this reason firms are increasingly making use of mentioned electronic currency in their business.
1.6 Significence of research study
There are lots of significence of the present research study because it cover varied aspects of the bitcoin. In the current research
study, importance of bitcoin will be discussed in detail. Different areas where bitcoin benefits the firm will be discussed in the firm.
Thus, it can be said that scope of the present research study is very wide and lots of things can be done make use of bitcoin as mode of
payment. It can be said that there is huge significence of the present research study. In the current research study number of people
and countries that are covered in the report are discussed in detail. This will show the extent to which bitcoin is prefererd by the
people and the business firms. Bitoin is the one of the important currency that can be used by the busienss firms in the curculation and
to perform business transactions across the globe. Thus it is very important to identify that after having such a strong positive points
what are the reasons due to which still at wide level bitcoin is not used by the firms to accept and to make payment online at wide
level. Thus, it can be said that scope of current research study is very wide. Governments alos may keep an eye on usage of bitcoin
and it may intended to interfere in usage of bitcoin in the nation. In this regard government can prepare some of the important rules
and regulations. In the current report, all these things will be covered extensively. This resarch study will help readers in
undersranding the extent to which govewrnment intervene on use of bitcoin in the Malaysia by preparing rules and regulations tightly.
This reflect that there is significent importance of the present research study for the individuals. Inflation is the another factor that
indirectly affect the currency value. Increase or decrease in the currency value heavily affect the usage of specific currency in the
nation or across the globe. Present research study is focusing on identifying whether inflation rate have any impact on the bitcoin. This
reflects that there is significence of the present research study as it help one in understanding whether there is any impact of inflation
on the bitcoin value and if there is any impact then to what extent it lead to up and down in the bitcoin value. Finally, in the research
study relationship will be identified between USD and bitcoin. Usually, in case of paper currency each nation currency value is
4 | P a g e

compared with USD and strength and weakness is identified and accordingly payments are exchanged by the firm. In the present
research study also same relationship will be identified between bitcoin and USD.
It can be said that like issues are observed in paer currency same are evalated in respect to electronic currency. This reflects
that at vast level relationship is identified among variables. Thus, scope of the present research study is very wide and lots of things
are covered in the report which reflects that at single place reader will become familiar with number of facts.
1.7 Strcuture of report Introduction: In order to prepare dissertation in systematic manner first of all introduction part is prepared and under this
detail discussion is carried out on bitcoin and its advantages as well as issues that can be associated with it (DeWaal and
Dempsey, 2015). In this section of the report, rationale and signfiicence of research is discussed briefly. It can be said that
there is huge significence of the present research study for researchers. Literature review: This is second part and one of the important section of the present research study. In this stage literature of
different scholars are reviewed in detail and positive and negative points that they speak in respesct to research objectives are
discussed in detail. Research methodology: It is another important segment of the current research study. Research methodology segment reflect
the approach that is followed to conduct the present research study. There are number of sub parts of the research methodology
section which will cover research appraoch, research philosophy, ethics and limitations of research. It can be said that there is
huge significence of this part of research because it reflect whether research is carried out in legitimate way by the researcher. Data analysis section: In this part of the research report data is analyzed by using relevant tools like thematic analysis and
SPSS. On the basis of analysis of results it is identified that in what specific direction research variable move like customers
are satisfied from the firm etc. In many researches on collected data SPSS is also used for analysis purpose. It is the tool that
reflect relationship among variables. It can be said that SPSS is the one of the most important tool that is used for analysis
purpose by the researchers.
5 | P a g e

 Conclusion and recmonedation: Finally after preparation of data analysis section conclusion and recommendation section is
prepared in the report. Under this results obtained on analysis are taken in to account in order to form conclusion and preparing
recommendation. It can be said that in this segment of the report overll conclusion of research study is described in detail.
6 | P a g e

CHAPTER 2: LITERATURE REVIEW
2.1Theoritical framework
In the image given below theoritical framework is explained below. Some of factors are taken in consideration to identify
trends that are assoicated with crypto currency. Factors that are considered to identify trends in Bitcoin are relationship between
Bitcoin and USD, varied years in which crypto currencies introduced, trends in number of transactions that are happened in Bitcoin,
price of bitcoin and number of vendors and inflation.
7 | P a g e

Conceptual framework is given above as it can be observed that there are few factors like relationship between USD and Bitcoin,
number of crypto currecencies introduced, trend in transactions happened in Bitcoin and price of Bitcoin as well as well as inflation.
All these factors are taken in to account and on that basis varied trends that existed in respect to Bitcoin are identified. It is observed
that in past time period transactions in Bitcoin increased consistently and in alignment to same number of firms accepting transactions
in Bitocoin also increase at rapid rate (Van Alstyne, 2014). Apart from this, in past couple of years number of transactions of Bitcoin
also increased at fast rate which reveal that it is gaining popularity among people. Inverse relationship is also identified between USD
and Bitcoin as when price of former currency increase value of other one decline. Hence, it can be said that both currencies are
negatively related to each other.
2.2.1 To identify relationship between Bitcoin and USD
According to Bonneau and Narayanan, (2016) there is a very strong relationship between different sort of currencies like
USA and Pound etc. With change in single currency automatic change happened in other one. It can be observed that there are number
of factors like economy of the nation and interest rates that have impact on any currency. It can be observed that there is a huge strong
relationship between Bitcoin and USD. With change in USD variation is observed in Bitcoin. Mentioned electronic currency is treat as
safe heaven by the USA investors. It is very important to understand the meaning of safe heaven term. Safe heaven reflect the area
where money invested by investor is safe and value of currency will not detoriate. In some of the nations like Cyprus it is observed
that there is interconnection between Bitcoin and domestic currency. This is because when crisis comes in the mentioned nation more
and more people become concerned about currency. Hence, they store amount in form of Bitcoin. This raise demand of currency in the
mentioned nation. It can be said that ups and downs in curreency have an impact on Bitcoin. In past few years demand of Bitcoin
incresed at rapid rate.
Contrary to this Eyal and Van Renesse, (2016) state there is no relationship between eletronic currency Bitcoin and value of
USD. This is because USD is used at wide level in order to purchase and sale items as well as purchasing same in the international
market. Whereas, Bitcoin is the newly launched currency in the market and is not used at vast level to make purchase and sale of
8 | P a g e

items. Bitcoin is used at small scale relative to USD and due to this reason it can not be said that there is any sort of relationship
between both currencies. Virtual money is no longer used by people at large scale. Hence, there is no relationship between Bitcoin and
USD. It can be observed that mentioned currency of USA is affected by same that is operated by other nations of the world. Thus, up
and down in those currencies lead to serious changes in value of USD in the international market relative to domestic currency. Such
things can not be happened with Bitcoin because it is not used at wide level like USD, GBP, EURO or INR. Hence, it can be said that
there is no interrelationship between USD and Bitcoin.
Bitcoin is emerging as one of most secured currency for making online payment in past few years manny innovations are done
in the mentioned crypto currency and due to this reason people belief on it as payment making mechansim increased at fast rate. It can
be said that it is the one of the most important factor that incentivize people to make more investment in the mentioned currency. With
passage of time use of Bitcoin will increase at rapid pace because now it is accepted by business firms globally for making payments.
Thus, there is wide scope of use of Bitcoin in the market.
According to Scaillet and Trevisan, (2017) there is high relationship betweeen USD and Bitcoin because interest rate
interlink both with each other. It can be observed that when interest rate get increased it is the symbol of strong economic growth.
With increase in interest rate USD value get increased. In opposite to this if in any case interest rate get declined it act as symbol of
slow down in the nation economy. All these things lead to decline in export of the nation and due to this reason currency value
declined sharply. Interesting fact is that due to all these things those who make investment in stock market and other risky assets face
heavy loss on investment. Thus, in order to ensure safety of investment amount people start buying Bitcoins and due to sudden
increase in demand of the product price of Bitcoin increase at rapid rate relative to USD. Thus, it can be said that there is high but
negative coorelation among both currencies. Usually, when stock price declined USA investors sale mentioned security in the market
and invest received amount on gold. This is the common behaviour that is observed in case of USA market. Same thing is also
observed in case of Bitcoin as investors when then think that they can observe loss on stocks make invest in Bitcoin. It can be said that
there is high degree of negative coorelation between USD and Bitcoin.
9 | P a g e

2.2.2 List of cyptocurrencies introduced
As per views of Narayanan and Goldfeder, (2016) number of crypto currcencies increase with passage of time perio. In the
FY 2009 Bitcoin was the first currency that was introduced and after that many new currecnies that are digital were launched. This
reflects that demand of ceypto currecienes are increasing at rapid pace as it can be observed that with passage of time usage of the
virtual currency increased at rapid pace across the globe. Moreover, demadnd of currency is increasing at rapid rate. It can be sasid
that there is huge importance of the elctronic currency for the people. It can be observed that in the FY 2014 two new crypto
currencies were launched namely Dash and Digital note. Whereas, in FY 2015 again two electronic currencies comes in the market
which are Ethereum and Etherum classic. It can be said that with increasing in use of crypto currency new one are launches in the
market. This is clearly reflecting that with passage of time transactions through Bitcoin increased at rapid rate.
Figure 1Merchants accepting Bitcoin
10 | P a g e

(Source: Narayanan and Goldfeder, 2016)
It can be seen from the chart given above that number of total merchants accepting bitcoin increasing at fast rate. In line graph number
of total merchants enhanced. In the April 2014 it ws 40,000 and same increased to July 2014 to 65000 which means that plunge of
2500 comes in the overall number of merchants that are accepting Bitcoin as curreny. In the April 2015 this number increased to 9000
from the value that is observed in case of July 2014. This means that from July 2014 to April 2015 total merchants increased by
35000. All these things are clearly communicating that two fold increase happened in number of total merchants accepting
transactions from Bitcoin. These figures are sufficient to assume that at fast rate more and more shops.
Contrary to this Tschorsch and Scheuermann, (2016) state that it is true that in past couple of years demand of crypto
currencies increased at fast rate due to wide acceptance of Bitcoin by the retailers and business firms. But this does not mean that all
ceypto currencies will be successfully operated in the market. It can be observed that there are some of similar currencies that are
failed in the market and today are inactive. For example Coniye was launched in the FY 2014 but become inactive as today there is no
demand of mentioned electronic currency in the market. It can be said that those make investment in mentioned electronic currency
face heavy loss in same. This is because one who buy Coniye is not getting any buyer. Hence, there is heavy risk in making
investment in any crypto currency. This is the reason due to which in future demand of virtual currency will not increase at fast rate in
the market.
According to Morgan, (2016) there are number of factors that lead to acceptance of Bitcoin across the globe. One of them is
that people now become more habiutal of doing trading in the digital currency. Means that in today time period one can make online
payment and can buy anything. In this regard bank accounts are used to make payment. It can be observed that Bitcoin is completelty
online currency that can not be touched physically by human being. More and more people are currently purchasing Bitcoin because
in the current time period price of paper currencies are fluctuaitng and declining at rapid pace. In order to manage loss in value of
currency people are using Bitcoin whose value is increasing consistently.
11 | P a g e

As per views of Maurer, B., Nelms, T.C. and Swartz, L., (2013) inflation is the one of the most important factor that have
heavy influence on the people. With increase in inflation people start make less expenses in their daily life and increase investments in
those avenues where more and more return can be genertated by making investment. Biticon is one of the instrument where people are
making investment to protect themselves from inflation. Due to rise in price of currency more and more people are using it as wappon
to use against inflation. Thus, in comparison to previous time period in order protect self from inflation more and more people
purchase Bitcoin and use same to purchase products in the international market. It can be said that this is the reason due to which
laerge number of people are taking interest in Bitcoin and using it to make online payment for purchaisng product. With passage of
time same trend may be observed consistently because economy are operarting in uncertain environment and it become difficult to
make accurate decisions in respecting to heding positions that are open in the market. Investment in the Bitcoin is the only way that is
available to the people to handle such kind of situations.
Opposite to this Ali and Hao, (2016) state that Bitcoin will never be surpass the usage of current currencies in the domestic
and international market. This is because people are more familiar with usage of USD and other currencies not Bitcoin. Moreover,
nations governments does not give any recognition to the Bitcoin. Due to this reason there willl be limited use of Bitcoin in the
market. Due to non recognition of Bitcoin as legal tender it will no longer used widely as method of making payment. If contrast to
this happened then in that case also demand of Bitcoin will remain low in the market. It can be said that in the upcoming time period
Bitcoin usage will not increase at rapid pace in the market. There is common assumption among the people that investment in Bitcoin
will provide then safety against market. This is true that when all instruments of market failed to give good reuturn on investment
people resort to Bitcoin. But it is not considered as currency in most of nations of the world. Due to this reason even one accumulate
huge benefit of mentioned currency can not be derived because same is not used at rapid pace by the general public.
As per views of Wiseman, (2016) number of transactions in bitocin may increase at rapid pace because some of the nations
like Japan are accepting Bitcoin as legal tender. Graduallly, it is possible that other nations of the world start accepting Bitcoin as
money. If same will happened then in that case value of Bitcoin will increase at rapid pace in the market. In such kind of situation
12 | P a g e

demand of Bitcoin will further increase and more it will be used to make online payment and purchasing products to meet needs. It
can be said slowly acceptance of Bitcoin by most of nations of the world it become legal tender across the globe and due to this reason
assumption that there is not much importance of Bitcoin is wrong.
2.2.3 To identify trends in number of transaction of Bitcoin which will reflect number of mining firms increase or decrease across the
globe
Figure 2Trend in transaction of Bitcoin
(Source: Brière, Oosterlinck and Szafarz, 2015)
According to Brière, Oosterlinck and Szafarz, (2015) with passage of duration number of transactions in Bitcoin increased at rapid
rate. It can be observed that from FY 2012 number of these transactions is increasing at fast pace and till 2014 this trend skyrocketed.
13 | P a g e

Growth rate in number of transactions increased at fast rate from FY 2014 to FY 2017. This clearly reflects that with passage of time
period number of Bitcoin transactions are increasing at rapid pace. This reflects that more and more currency is accepted by business
firms as one of the important mode of payment. This reflects that miners are also increasing in respect to bitcoin. This is because
transacions are increasing which means bitcoin is increasing at rapid pace. Bitcoin increased when numebr of miners elevate at rapid
rate. So it can be said that over the past couple of years number of bitcoin miners increase at rapid pace. It can be said that in the
upcoming time period also demand for bitcoin will increase which will lead to strong increase in nmber of transactions. In current time
period number of miners that through hashing at bitcoin blockchain are generating bitcoin are 5000 in number. There is a common
term node that is used in the block chain technology. Node refers to computer that connect to the bitcoin network. These nodes run the
original bitcoin corre wallet and develop strong foundation for network. Nodes about which discussion is carried above assist entire
network by accepting transactions and bloks from other nodes. It must be noted that blocks refers to the group of transactions that
individuals intends to do in bitcoin currency.
14 | P a g e

Figure 3Estimated number of Bitcoin miners
(Source: Vasek, Thornton and Moore, 2014)
Chart that is given above is clearly reflecting that number of bitcoin miners is increase rapidly after FY 2013. It can be seen that
number of Bitocin miners increased from around 20000 to 90000. However, thereafter fluctuation is observed in estimated number of
Bitcoin miners but same is increasing at same rate over the years. It can be said that because number of transactions on Bitcoin
increased at rapid pace miners number will also elevate at fast rate. There are number of nations that are starting accepting Bitcoin in
the country like Japan. Due to this reason it is expected that in the upcoming time period also demand for Bitcoin will increase in the
15 | P a g e

upcoming time period. There are number of benefits of using Bitcoin for the people and due to this reason over the past few years use
of mentioend currency increased at fast rate and number of Bitcoin generators also increased. It is expected that in upcoming time
period also same trend will continue to exist.
As per views of Vasek, Thornton and Moore, (2014) if data from January 2016 to Octomber 2016 is analyzed then it can be
observed that from December 2016 number of miners increase at fast rate to month of March 2016. In the chart that is given below it
can be said that there is shaded line
Figure 4Bitcoin network hash rate
(Source: Vasek, Thornton and Moore, 2014)
16 | P a g e

Which is reflecting confidence interval at 95% level the shaded lines that are above and below grey line is reflecting upper and lower
limit or range within which value of variable lie. It can be observed that value at 95% confidence interval is increasing at rapid pace
which means that value of confidence that there is 95% probability that value or number of miners will increase at specific rate.
2.2.4 Relationship between price of bitcoin and vendors
As per views of Piotrowska, (2016) vendors in the foreign market will make investments in various securities to earn profit in
short run. There are various market securities available for the vendors in the foreign market to invest their amount of money. The
Bitcoin is type of currency under which the vendors are taking interests in today's market. There are many countries like Japan and
china are taking interest to regulate their investment in foreign market. In this we have done an analysis of the relationship between
the price of Bitcoin and the number of the companies or vendors who are accepting the bitcoin. A continuous growth in the technology
has increased the role of transferring the digital funds between the countries as well as the companies who have trade relation with
each other. We have the discussed the relationship as above. The currency bitcoin has a relationship with vendors because its demand
in the market will depend upon the numbers of vendors who are accepting as a mode of payment for purchase and sale of goods and
services.
According to this Samtani and Baliga, (2015) there is a perfect relationship between the fluctuation in the price of bitcoin as
per the increase or decrease in the number of acceptance by the companies. The companies in the international market are now taking
it as mode of digital payment against the goods purchased or sold in the market. It has been considered that value of bitcoin will
increase if there will be an increase in its acceptance by the number of investors or vendors. And its value or price will decrease if
there is a decrease in number of acceptance by the stores. And its price is continuously taking a growth in the foreign market. It based
on a distributed register which is known as block chain. It provides an ease in mode of accepting the payment from the large retail
stores whom they sell their products. In order to maintain the supply of goods and services it has been accepted widely by the stores.
Its sale in the market will diminish its prices in exchange of the other currencies in the market place. On the contrary according to, it
17 | P a g e

has also given an impact on the value of other currencies in the foreign market. It has created a confusion the suppliers to accept it or
not because all the stores in he countries are not accepting the Bitcoin as mode of exchange of goods and services. After increase in its
popularity and widely gained the attention of the public.
As per views of Van Alstyne, (2014) there are number of factors that have influence on price of bitcoin. One of these factors is
that level of competition in the network among producers of mentioned currency play vital role in determining value of currency. This
means that more is the complex to generate Bitcoin value of it will affected. Secondly, rate of unit production have heavy impact on
price of Bitcoin. Means that if cost of generating Bitcoin will change surely price of same will get affected. Third factor that have
impact on price of Bitcoin is difficulty of algorithm that is used for mining of currency. All these factors have impact on currency
value. Contrary to this Piotrowaska and et.al., (2017) state that there is not any big relationship between Bitcoin price and number
of vendors. This means that if vendors will increase then it does not necessarily mean that price of mentioned currency willl elevate.
This is because it is not necessary that number of vendors acepting Bitcoin will increase then more and more people will start
purchasing products and services by using mentioned currency. Currently, also virtual currency does not accepted by most of nations
of the world and due to this reason even vendors accepting Bitcoin it is not necessary thar price of same will increase at fast rate.
As per views of Polasik, and et.al., (2015) research results are clearly reflecting that over recent years huge interest growing
on among people about Bitocoin and due to this reason demand of same increased in the market. Return that investors receive on
Bitcoin is primarily affected by its popularity and whatever comes in print and electronic media. More positive information comes
about crypto currency market people intend to purchase more units of electronic currency. With increase in total number of
transactions also price of currency also increased in the market. Hence, it is probability that in future value of Bitcoin may increase.
2.2.5 Inflation and bitcoin price
According to Gandal and Halaburda, (2016) bitcoin is an electronic currency which is used for exchange of goods and
services. Inflation is a financial term in which price of various commodities rises and currency looses its purchasing power. It varies
18 | P a g e

from country to country to determine the financial condition of different nation. Bitcoin is affected by two factors that is price inflation
and price deflation:Price Inflation it defines that when price of goods and services decreases, the price of Bitcoin increases. It means
when value of goods and services increases, the value of bitcoin decreases. The value of electronic currency decreases when its
supply in the market increases. It means the value of digital currency increases, the supply of Bitcoin decreases. It shows there is
inverse relation between Bitcoin and inflation and deflation. The price of Bitcoin fluctuates according to the exchange rates and
market price, which is decided by purchaser, consumer and traders. These parties directly trade this currency with all other types of
currency. Value of goods and services reflective of exchange rates because and the Bitcoin Manufacturing rate due to mining.If
bitcoin was accepted as global reserve currency then it would create an environment that assist to face inflation and provide a neutral
amount of fall in the value of goods and services. Further sufficient supply of of bitcoin to move the people ahead as fast as the
tradition system does cope with rising price of goods and services. Supply of Bitcon is set by the program and demand is a function of
speculation in today's time.Increase in price enhances more release of this currency. Similarly the money supply along with Bitcon
is developed to increase its value. The money supply grows by allowing the value of goods and services decrease to fit the amount of
this electronic currency, this motivates saving. At the same time saving increases the cost of digital currency. Bitcon is developed as
world's primary currency , at the time of contingency like bank robberies. The economies of developing country feels deep impact
from Bitcon. As it provide more benefits , it depends on their political geography. People living in high inflation country with
sufficient interest access as most of the person seek refuge in `Bitcon. It increase purchasing power as it has short term fluctuations
and the latest medium of exchange against the liquidity, bank closure, government related policies. It increases purchasing power for
decentralised currency and its worldwide user. It is equivalent to gold.
As per views of Ong and et.al., (2015) it is also view as either currency or commodity , its purchasing power explain gold price
in BTC. Inflation is a characteristics of currency along with increase in supply and decrease in demand. Digital money is not accepted
as legal tender in any nation. Bitcoin assist to deal with inflation as it cannot be produced , but its value go down which means it
fluctuates. Bitcoin will replace currency of a nation and provides various benefits to not only citizen but also government to cope with
19 | P a g e

rise in price. Increase in inflation very serious issue because it slowly decrease the value of people's earnings. The world of physical
currency views straight , provide monetary polices to those people who keeps standard and stable way of exchange. Most of
irregularity arises in the money supply is due to lending by banks, so Bitcoin helps to cope with this situation. In bitcoin, software can
be audited any time creates transparency in monetary policies of any nation . So it is required to adopt at large scale. This digital
currency has abundant in supply and have ability to become secure from long term inflation. High rise in price can be sum up with
internet facilities that leads to use bitcoin on large scale. Bitcoin is deflationary in nature there are various circumstances where
demand is more than supply and miners cannot mine Bitcoin on a large scale, as a result there is rise in price. It is not deflationary in
some of the circumstances like high unemployabilty, increase in production, decrease in the supply of currency, heavy tax and public
debt etc. These factors affects the valuation of digital currency. At present there are Bitcoin that will be required to mine as a result
supply is increasing. These factors have neutral affect on the price of Bitcoin as in the case of any currency of a nation. If government
is raising tax then it will not have any effect on Digital currency.Bitcoin have exchange rate with all the physical currency and other
digital currency which is not yet issued. The market will det ermine the value of Bitcoin. As it changes in price in relation to other
currency then decimalization will be the sole solution for changes in the price of goods and services. But that price will move up and
down in accordance with all the supply and demand forces that market places on commodities. Price changes in the Bitcoin on the
Bitcoin exchange is affected by various factors. Bitcoin fluctuation is driven in large part by different perception about its intrinsic
value of digital currency as store of value method of value transfer. Store value means an assets canbeuseful infuturewith some
expectation.
Contrary to this Johnson and et.al., (2014) state that there is little relationship between price of Bitcoin and inflation rate
because inflation rate does not change at fast pace in nations of the world. If comparison will be made between price of Bitcoin and
inflation rate then it can be observed that former increase at fast rate then latter one. Hence, it can be said that there is little or no
relevance between inflation rate and price of Bitcoin. Thus, it is clear that apart from inflation there are some few major factors that
have huge impact on the price of Bitcoin. It is observed that demand of Bitcoin is the one of the main factor that have heavy influence
20 | P a g e

on price of mentioned virtual currency because increase in demand reflect that more and more people are interested in mentioned
currency then in that case more units are issued in the market and this lead to increase in price of Bitcoin in the market. Thus, it can be
said that price of Bitcoin and inflation rate does not have any big relation.
Particulars Authors Year Country Variables Methodology Findings
Joseph Bonneau 2016 USA Out of band
payment,
negative fee
minning tool and
In band
payment.
Review of
cases.
Study revealed
that atteackers
may purchase
mining power.
Ittay Eyal, Adem Efe Gence
r, Emin Gün Sire
r, and Robbert van Renesse.
2016 USA Nodes were
variable that
were connected
to each other in
peer network.
In research
they run the
standard
client (release
0.10.0), to
analyze
variables.
Finding of
research paper
was that the
technical debate
to improve
scalability has
been ham-
pered by a
perceived
inherent trade-
off between
performance
metrics and
security goals of
the system.
Morgan 2016 USA Blockchain, Review of Finding of study
21 | P a g e

payment system
and virtual
currency.
cases is that
blockchain
make it easy to
make fast and
secured
payment.
Wiseman 2016 USA Tax and number
of transactions at
global level
made by using
Bitcoin.
Review Study revealed
that number of
global
transactions of
Bitcoin are
increasing
consistently.
Marie Brière 2015 Not known Bitcoin and
virtual currency
Review People are
making
investment in
Bitcoin to
diversify risk.
Marie Vaseka, Micah Thornton
and Tyler Moore
2014 Not known Bitcoin and
DDOS
Review Research study
finding was that
currency
exchanges and
22 | P a g e

mining pools
are much more
likely to have
DDoS
protection such
as CloudFlare,
Incapsula, or
Amazon Cloud.
Anna Iwona Piotrowska 2016 Poland Cypto currency
and individual
segments of
payment service
market
Data
collection and
analysis
Findings of
research was
that in future
use of Crypto
currecncies as
mode of
payment will
increase in
Poland.
Piotrowaska, Michal Polasik,
Tomasz Piotr Wisniewski
, Radoslaw Kotkowski and
Geoffrey Lightfoot
2016 Poland Bitcoin, demand,
supply and
currency
Data
collection and
analysis
Results reflect
that company
features,
use of other
payment
methods,
customers’
knowledge
23 | P a g e

about Bitcoin
as well as the
size of both the
official and
unofficial
economy are
significant
determinants in
respect to use of
Bitcoin by
people.
Neil Gandal
and Hanna Halaburda
2016 Isreal,
Canada and
USA
Network effects;
cryptocurrencies;
first mover
advantage
Analysis of
exchange rate
of Bitcoin and
other
currencies
Results indicate
that other crypto
currencies
perform better
the Bitcoin.
However,
Bitcoin in
comparison to
other currencies
like USD give
better
performance
many times.
Bobby Ong, Teik Ming Lee,
Guo Li, David LEE Kuo Chue
2015 Not known Bitcoin, Trading Data was
gathered and
statistical tool
was applied.
Research reflect
that Bitcoin
behaviour
change from
past time to
current time
period as more
people are using
24 | P a g e

Bitcoin.
Benjamin Johnson,Aron Laszka 2014 Not known Bitcoin, Game
theory and
security
Game theory
is used to
reach at
specific result.
Results reflect
that larger pool
have higher
incentives then
smaller one to
attack block
chains.
Maurer, Nelms and Swartz 2012 Not known Inflation and
Bitcoin
Review There is
relationship
between Bitcoin
use and
inflation.
Polasik 2015 Not known Bitcoin and
return
Review Price of Bitcoin
and demand of
it is closely
related.
Van Alstyne 2014 Not known Bitcoin,
algorithm,
mining
Regression
results
There are
number of
factors that have
influence on
Bitcoin like its
cost and
complexity of
algorithm.
25 | P a g e

CHAPTER 3:RESEARCH METHODOLOGY
3.1 Research introduction
Bitcoin is the one of the main virtual currency that in the current time period is used for making payments or for purchasing
products and services in the market. Gradually, currency is accepted by vendors and its value increased consistently. There are number
of factors that lead to increase or decrease in value of currency and in the current report varied factors that have significent impact on
value of currency are identified. An attempt is made to explore relationship between value of currency and factors like inflation and
increase in rate at which vendors are accepting Bitcoin. In this regard in the report detail literature review is done and in this segment
of report relationship of all these variables with value of currency is explored (Marshall, Altman and Holder, 2010). Apart from this,
research methodolgy section is also prepared in the report. Data analysis will be done by using thematic analysis method. Further,
discussion and conclusion section will be prepared and in this way entire research work will be carried out. Over the past couple of
years use of Bitcoin increased in the market at fast rate and due to this reason it was important to identify the factors that contribute to
success of the mentioned currency in the market even there are very few nations that are accepting Bitcoin as legal tender. Thus, it can
be said that present research study will reveal lots of things in respect to currency to readers.
3.2 Research design
There are varied sort of research design methods that are used in the research studies. Research design methods can be
classified in to different categories namely exploratory, descriptive and experimental research design. All these method of research
design are different from each other in terms of their applicability and tools that can be used in research by researcher. Exploratory
research design is the one of the commonly used approach that is used in research studies because this research design help firms in
understanding things from starting point. Mentioned research design help researcher in understand research topic from start. Apart
from discussed research design there is another approach which is known as descriptive research design (Nagai, Taura and Sano,
2011). Under this research design one knows something about research subject but wants to increase deep understanding about same.
It can be said that both these research designs are different from each other. Along with this, other research design that is used in
26 | P a g e

research studies are experimental research design. Mentioned one is used in the researches that are scientific in nature and are related
to research projects. In present research study main focus must be on exploratory research design. This is because in the research study
above literature review is done and further collected data will be analyzed deeply. In this way, entire research work will be done.
Thus, it can be assumed that descriptive research design willl be better for research study.
3.3 Research approach
Approach refers to the specific method that is used in the present research study for doing in depth analysis of research subject.
There are two sort of research appraoches namely inductive and deductive. Use of any of these approaches depends on the subject on
which one is carrying out its research. There is huge gap between both sort of research approaches which are inductive as well as
deductive (Megha. and Rajiv, 2013). One needs to understand requirements of research subject because by understanding same in
better manner appropriate type of research approach can be selected. Inductive research approach is used when one wants to formulate
theory on the basis of analysis of data. Under present research study main focus is on observing facts and figures. In inductive research
approach first of all analysis of facts and figures is done. Analysis is done by using specific tools like SPSS or thematic analysis
method. On the basis of observation data is gathered and analyzed using above mentioned tools. On the basis of results of hypothesis
testing or results of thematic analysis theory is prepared. On other hand, there is deductive appraoch and under this theory is already
prepared by someone but its applicability is tested by using specific tools. Thus, it can be said that both inductive and deductive
approaches are different from each other. In the current research study inductive approach will be used because theories are evaluated
and extent to which same are correct will be identified by using relevant tool. Thus, inductive approach will be suitable for research
study.
3.4 Research philosophy
Above given name is the one of the most important section of the research report. Usually, in the research there are two sort of
philosophies that are employed by researchers. These research philosophies are interpritivism and positivism (Sarantakos, 2012). Both
these are different from each other. It must be noted that interpretivism philosophies are used in the research studies where which are
27 | P a g e

not scientific. Opposite to this, positivism research philosopy is one which is used when research that is carried out by individual is
scientific in nature. Means that advanced tools and methods are used in research like SPSS for data analysis. Research philosophy is
the section that is commonly prepared in the dissertation. This is because it determine the direction in which research study will be
carried out by the reseearcher in its study. There are huge need to be make specific efforts in the research to ensure that research study
is carried out in proper manner. Due to this reason specific attention is given on this section of report while preparing dissertation and
positivism philosophy is selected for research study.
3.5 Data collection
In order to do data collection it is very important to determined appropriate method so that data can be collected in better
manner for the research study. There are number of sources from which data can be collected by the researcher ( Hamm and et.al.,
2013). Secondary data will be gathered in present research study and same will be analyzed by using statistical tools and techniques.
Secondary data will be used in current research study because geenrally people does not know much about facts and figures that are
associated with Bitocoin. Hence, there is high probability that gathered data may be wrong if taken from people. By considering all
these facts it is decided that entire data will be taken from secondary sources. Gathered secondary data will be analyzed and in this
way entire research work will be carried out.
3.6 Data analysis
There are varied methods that are used for data analysis by the researchers. In order to analyze data there are two options are
available namely thematic analysis and SPSS. In thematic analysis method by using charts and graphs analysis of data is done and
results are obtained. Apart from this SPSS can also be used in the research study. In the present research SPSS will be used and under
this varied tools will be applied to analyze data in legitimate manner. SPSS is the one of the important tool that can be used for
analysis of data. In the current research report varied statistical tools will be applied on the data set that will be extracted from the
multuple internet sources. There are number of tools and methods that are available as option and can be applied on data in order to
obtain specific results. Out of available options best one will be selected for the present research study. Regression tool will be used to
28 | P a g e

analyze data. This is because it reflect the relationship between two independent variables. There are some assumptions that need to
be fulfilled before selecting any specific tool for data analysis. Like multivariate regression can be applied on data set that are of
continue type. It must be noted that statistical tools are available but on all sort of data they can not be analyzed for analysis purpose.
There are different sort of data that can be taken in to account for analysis purpose like continue series data, categorical variable data
and others. There are different models of regression like multivatiate regression and binomial logisitc regression. Multiviate regression
is used when data is in continuous series and binomial is used when dependent and independent variables have cateogrical variables.
In the current research study multivariate regression will be used because data that will be taken in to account are of contrnuous series.
Hence, it can be said that after making prudent decisions releavnt statistical tools are used for analysis of data. Apart from regression,
there are many other tools that can be used for analysis of data like independent T test. Mentioned test can also be used for analysis of
data in the current research study. Independent T test scope is vast then regression. For example in case of regression it is necessary
condition that there must be relationship between dependent and independent variables. Opposite to this, in case of independent
sample t test it is not necessary that there must be dependent and independent relationship among variables. Thus, in case it is
identified that there is no relationship of independent and dependent variable among items then in that case at place of regression
independent sample t test can be used for analysis of data. This is one side, as there are lots of features in mentioned test. Like item
wise data can be classified in different categories and for these different classifications separately mean and standard deviation
statistics can be obtained. Thus, in research attempt will be made to use independent t test is regression does not fit to research
requirement. Apart from this, in order to obtain an overview of data descriptive statistics can be used and under this mean, standard
deviation and mode of variable can be computed in order to get detailed overview of data. It can be said that appropriate method is
used for analysis of data in the reserarch study. In detail data will be explored by using tools and in this way conclusion and discussion
section will be prepared in the report.
29 | P a g e

3.7 Research limitation
Like most of research studies there are some limitations of the present research study and one of them is that it is possible that
small sample size can be taken in respect to variables on which research study is proposed to be undertaken. Means that for analysis
of data there will be some variables in respect to which facts will be gathered. It is possible that small size sample can be taken from
internet sources. There may be a situation where small size data may be unable to explain relationship among variables in proper
manner. Thus, research may reveal wrong results and wrong conclusion can be formed. Thus, probability of taking small size data
may lead to orignation of limitation in the present research. There are some other limitation of the research like it is possible that due
to failure to take more appropriate variables research may fail to give better results. However, in order to handle this situation it will
be ensured that all relevant variables are taken in to account for analysis purpose.
3.8 Ethical considerations
In every research there are some ethical considerations that need to be taken in to account for conducting research in proper
manner. Like in the researches where data is gathered from secondary sources like websites etc. In the present research also there are
some ethical considerations and under this it will be ensured that from reliable sources entire data is gathered. It will be ensured that
sufficient size of facts are taken in to account. This will ensure that reliable results are obtained from the research.
30 | P a g e

CHAPTER 4: DATA ANALYSIS SECTION
To identify relationship between Bitcoin and USD
Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
ValueofBitcoininU
SD 365 571.54 4360.88 1364.5258 849.31155
Valid N (listwise) 365
31 | P a g e

1 15 29 43 57 71 85 99 113127141155169183197211225239253267281295309323337351365
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Chart Title
In order identify relationship between Bitcoin and USD descriptive statistics tools are used. It can be seen from the chart that in past
few years USD become stronger than Bitcoin (BTC USD historical data, 2017). Chart given above revealed that price of Bitcoin
declined consistently relative to USD. Descriptive statistics table that is given above revealed that minimum value of Bitcoin in USD
is 571.54 and value of same increased to 4360.68. Thus, it can be observed that huge traction comes in the exchange rate and with
passage of time Bitcoin become weak relative to USD. This, may happened because Bitcoin can be converted in to USD. It is possible
that most of people after obtaining Bitcoin converted it in to domestic currency so that easily trade can be done in items. This is the
reason due to which value of USD become stronger than Bitcoin. Mean value of exchange rate is 1364.52 which means that on an
32 | P a g e

average basis Bitcoin trade at value nearby to USD in the relevant exchanges. Standard deviation value is 849.31 which is higher in
number and on this basis it can be said that currency exchange rate is fluctuating at fast rate. Trend is on increase and on this basis it
can be said that value of Bitcoin decline at sharp rate then USD in past couple of years.
1 19 37 55 73 91 109127145163181199217235253271289307325343361
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Market price
MA of market price
Chart Title
Market price MA of market price
It can be seen from the chart that there is difference be in the market price of Bitcoin and moving average of same. It can be observed
that in starting time period almost there is similarity in market price of Bitcoin and its moving average but on later stage it is seen that
market price is greater then moving average value. This reflects that from starting of 2017 market price become more then moving
average value. Hence, it can be said that more than average rate Bitcoin become weaker then USD. Thus, it can be said that it is best
time for making investment in Bitcoin because by converting it in to USD one can make higher number of purchase. It can be
33 | P a g e

observed that in past few years demand of Bitcoin increased because it can be converted in to USD and it became easy task for one to
make purchase. Thus, it can be said that overall statistics revealed that Bitcoin is weaker then USD.
 To identify number of crypto currency introduced.
 To identify trends in number of transaction of Bitcoin which will reflect number of mining firms increase or decrease across
the globe.
To identify relationship between price of Bitcoin and number of vendors
H0: There is no significent mean difference between price of Bitcoin and number of vendors
H1: There is significent mean difference between price of Bitcoin and number of vendors
Descriptive Statistics
Mean Std.
Deviation
N
Priceofbitcoin 794.3000 601.18007 23
Numberoftransactio
n
7020412.434
8
1484266.053
59 23
Correlations
Priceofbitcoi
n
Numberoftra
nsaction
Pearson
Correlation
Priceofbitcoin 1.000 .588
Numberoftransactio
n .588 1.000
Sig. (1-tailed) Priceofbitcoin . .002
34 | P a g e

Numberoftransactio
n .002 .
N
Priceofbitcoin 23 23
Numberoftransactio
n 23 23
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .588a .346 .314 497.76675
a. Predictors: (Constant), Numberoftransaction
b. Dependent Variable: Priceofbitcoin
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1
Regression 2747978.044 1 2747978.044 11.091 .003b
Residual 5203206.397 21 247771.733
Total 7951184.440 22
a. Dependent Variable: Priceofbitcoin
b. Predictors: (Constant), Numberoftransaction
Coefficientsa
35 | P a g e

Model Unstandardized Coefficients Standardized
Coefficients
t Sig. 95.0% Confidence Interval for
B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) -877.353 512.574 -1.712 .102 -1943.309 188.603
Numberoftransaction .000 .000 .588 3.330 .003 .000 .000
a. Dependent Variable: Priceofbitcoin
Residuals Statisticsa
Minimum Maximum Mean Std.
Deviation
N
Predicted Value 110.4144 1519.3282 794.3000 353.42339 23
Residual -410.80402 1600.88293 .00000 486.32230 23
Std. Predicted
Value -1.935 2.051 .000 1.000 23
Std. Residual -.825 3.216 .000 .977 23
a. Dependent Variable: Priceofbitcoin
Interpretation
In order to identify relationship between number of transactions of Bitcoin and its price regression analysis tool is used. It must be
noted that in order to represent number of vendors variable number of transaction is taken in to account. In case number of vendors will
increase transactions will suerly increased and due to this reason in order to represent number of vendors variable number of
transactions is taken in to account. It can be seen fom the regression table that value of multiple R is 0.588 and same of multiple R
36 | P a g e

square is 0.346. R square is the one of the important statistics of regression which reflect percentage change that comes in dependent
variable due to change in independent variable. It can be said that with change in number of vendors price of Bitcoin may change by
34%. Value of R square is 0.58 which reflect relationship among variables. Value of coorelation is moderate and it can be said that with
change in number of transactions or vendors price of Bitcoin change at moderate rate. Value of level of significence is 0.03<0.05 and
this reflects that with change in number of transactions or vendors huge variarion comes in the price of mentioned crypto currency.
This means that alternative hypothesis is accepted.
On analysis of table of descriptive statistics it can be seen that number of transactions of Bitcoin are changing at fast pace then
price of bitcoin. Value of standard deviation may be high in case of number of transaction because its value is higher then other
numbers. Coorelation value is 0.588 is moderate and it can be said that number of transactions and price of Bitcoin are interrelated to
each other.
Identifying number of cryptocurrencies introducted
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Numberofcryptocurrencyintro
duced 6 1.00 8.00 3.3333 2.58199
Valid N (listwise) 6
Interpretation
Table given above is revealing that number of crypto currency introduced on average basis os 3.33 which means that in most
of years on average basis three currencies are launched. Standard deviation value is only 2.58 which means tha at low rate number of
cryptocurrency introduced in the market. Minimum number of cryptocurrency introduced is 1 and maximum number of electornic
currencies comes in market is 8. It can be said that in past few years many crypto currencies are introduced in the market. This can be
better understand by table that is given below.
Years Number
37 | P a g e

of crypto
currency
introduc
ed
2012 1
2013 3
2014 8
2015 4
2016 1
2017 3
It can be observed that higher number of electornic currency was introduced in year 2014 followed by 4 electronic currency was
introduced in year 2015. In year 2013 and 2017 three electronic currencies were launched. Hence, in can be said that on yearly basis
most of times at least 3 new electronic currencies are introduced. It can be said that it is possible that in upcoming time period also
number of these currencies will increase in market.
To identify number of transaction of Bitcoin which will reflect number of mining firms
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Transactionofbitcoin 60 935239.00 10065301.00 3964085.9167 2668348.31455
Valid N (listwise) 60
38 | P a g e

2012-08-01 00:00:00 UTC
2012-11-01 00:00:00 UTC
2013-02-01 00:00:00 UTC
2013-05-01 00:00:00 UTC
2013-08-01 00:00:00 UTC
2013-11-01 00:00:00 UTC
2014-02-01 00:00:00 UTC
2014-05-01 00:00:00 UTC
2014-08-01 00:00:00 UTC
2014-11-01 00:00:00 UTC
2015-02-01 00:00:00 UTC
2015-05-01 00:00:00 UTC
2015-08-01 00:00:00 UTC
2015-11-01 00:00:00 UTC
2016-02-01 00:00:00 UTC
2016-05-01 00:00:00 UTC
2016-08-01 00:00:00 UTC
2016-11-01 00:00:00 UTC
2017-02-01 00:00:00 UTC
2017-05-01 00:00:00 UTC
0
2000000
4000000
6000000
8000000
10000000
12000000
Number of transactions
Figure 5Number of transaction of Bitcoin
Interpretation
Descriptive results are clealry revealing that minimum value of transaction of Bitcoin is 935239.00 and maximum value of it is
10065301.00. It can be said that there is difference in the minimum and maximum number of transaction of Bitcoin that happened
across the globe. Value of standard deviation is 2668348.31455 and this reflect that transaction of Bitcoin deviate at fast pace. This is
proved from the chart where it can be seen that number of transactions are increasing consistently. It can be seen from the chart that
after 2014 means that after commencement of 2015 number of transactions increased at very high rate (Coins, 2017). Rate of
elevation sparked which reflects that number of mining firms increased in the market. Issuance of Bitcoin is dependent on the mining
firms. If transactions increase then it means that Bitcoin is used more for making payment and more Bitcoin generated then it means
that Bitcoin miners increased at fast rate. Thus, it can be said that number of miners increased at fast rate in the past few years and
after 2015 this number elevate at fast rate. It is expected that in the upcoming time period number of miners will increase at rapid
39 | P a g e

pace. This is because demand of Bitcoin is increasing consistently and due to this reason more and more firms will enter in to mining
business. It can be said that in upcoming time period huge change may be observed in scenario.
To identify relationship between inflation and price of Bitcoin
H0: There is no significant mean difference between inflation and price of Bitcoin.
H1: There is significant mean difference between inflation and price of Bitcoin.
Descriptive Statistics
Mean Std. Deviation N
Priceofbitcoin 794.3000 601.18007 23
Inflationrate 1.2391 .80269 23
Correlations
Priceofbitcoin Inflationrate
Pearson Correlation Priceofbitcoin 1.000 .730
Inflationrate .730 1.000
Sig. (1-tailed) Priceofbitcoin . .000
Inflationrate .000 .
N Priceofbitcoin 23 23
Inflationrate 23 23
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1 Inflationrateb . Enter
a. Dependent Variable: Priceofbitcoin
40 | P a g e

b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .730a .533 .510 420.61186
a. Predictors: (Constant), Inflationrate
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4235983.361 1 4235983.361 23.944 .000b
Residual 3715201.079 21 176914.337
Total 7951184.440 22
a. Dependent Variable: Priceofbitcoin
b. Predictors: (Constant), Inflationrate
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. 95.0% Confidence Interval for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) 116.914 163.877 .713 .483 -223.887 457.715
Inflationrate 546.662 111.718 .730 4.893 .000 314.332 778.992
a. Dependent Variable: Priceofbitcoin
41 | P a g e

Interpretation
Results are reflecting that mean value of the price of Bitcoin is 794.30 and standard deviation is 601.18. In same way mean and
standard deviation of inflation rate is 1.23 and 0.80269. It can be observed that inflation rate deviate at low rate as it is verified from
low value of standard deviation. Mean value of inflation rate is 1.23 which means that inflation rate is very low in USA. Mean value
of variable price of Bitcoin is 794.30 and this means that on average basis Bitcoin trade at mentioned price. Coorelation value in case
of price of Bitcoin and inflation rate is 0.730 and this reflect that there is high degree of relationship between both variables. This fact
is further verified from the value of level of significence is 0.00<0.05 and this means that there is signifcent relationship among both
variables.
In regression model it can be observed that value of R is 0.730 which means that both variables are highly coorelated to each
other. This means that with change in inflation rate huge variation will come in price of Bitcoin. Value of R square is 0.533 and this
reflects that with change in change comes in inflation rate 53% variation comes in the inflation rate. Adjusted R square value is 0.510
which means that if any variable will be added in the model then in that case price of Bitcoin may change by 51%. Value of level of
significence is 0.00<0.05 and this means that there is significnt mean difference between both variables. Means that with small rate of
change in inflation rate big percent changes comes in the price of Bitcoin. From cofficient table it can be observed that beta value is
546 which means that with small increase in inflation rate price of bitcoin change by 546 points. It can be said that huge variation
comes in Bitcoin price with change in inflation rate. There is significent mean difference between both variables and due to this reason
alternative hypothesis is accepted.
42 | P a g e

Price of Bitcoin and other independent variables
H0: There is no significant mean difference between price of Bitcoin and independent variables.
H1: There is significant mean difference between price of Bitcoin and independent variables.
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1
ValueofBitcoini
nUSD,
Transactionofbi
tcoin,
Inflationrateb
. Enter
a. Dependent Variable: Priceofbitcoin
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .886a .784 .750 300.45814
a. Predictors: (Constant), ValueofBitcoininUSD,
Transactionofbitcoin, Inflationrate
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 6235957.625 3 2078652.542 23.026 .000b
43 | P a g e

Residual 1715226.815 19 90275.096
Total 7951184.440 22
a. Dependent Variable: Priceofbitcoin
b. Predictors: (Constant), ValueofBitcoininUSD, Transactionofbitcoin, Inflationrate
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) -14558.081 3136.973 -4.641 .000
Transactionofbitcoin .000 .000 .194 .970 .344
Inflationrate 24.978 183.530 .033 .136 .893
ValueofBitcoininUSD 25.128 5.339 .739 4.707 .000
a. Dependent Variable: Priceofbitcoin
Interpretation
Value of level of significence is 0.00 which means that there is significent mean difference between dependent and
independent variables. Due to change in inflation rate and Bitcoin value in USD 24 and 25 points change comes in Bitcoin price that is
in market. Value of R is 0.88 which reflect that there is high degree of relationship between dependent and independent variables.
Alternative hypothesis accepted because level of significence is 0.00<0.05. It can be seen from the above table that variable value of
Bitcoin in USD is statistically significent because value of level of significence is 0.00<0.05. Apart from this, in case of other
variables transaction of Bitcoin and inflation rate value of level of significence is 0.344 and 0.893 which is more then 0.05 which
means that there variables does not lead to significent change in dependent variable.
44 | P a g e

CHAPTER 5: DISCUSSION
To identify relationship between Bitcoin and USD
There is strong relationship between electonic currency and USD as it can be observed that in past few years Bitcoin become
more weaker the USD. There are number of reasons due to which electronic currency become more weaker then USD. It can be
observed that in today time period people are prefering to make more use of elenctronic currency to make payment. As per rules it is
possible to convert crypto currency in USD. This rule is prepared because every retail firm is not accepting Bitcoin as mode of making
payment. Thus, in order to facilitate easy use of mentioned electronic currency its conversion in to USD is allowed. From here
relationship that is observed in data analysis section comes in existance. This is because when electronic currency is exchanged in to
dollary demand for latter currency increased in the market and due to this reason price of same increased at fast rate relative to
Bitcoin. In past few years conversion of Bitcoin takes place at rapid rate and due to this reason relative to it value of USD enhance at
rapid pace. Data that is analyzed is clearly revealing that people wants to do more and more digital payments. This is because in same
they does not need to carry out huge amount of money with them. Payment happened at instant rate and one does not need to move
here and there to make purchase. Some product suppliers accept Bitoin and some not. Thus, facility of currency conversion give
individuals an opportunity to make best use of bitcoin to fulfill their needs. With passage of time more and more people start making
use of Bitcoin by converting it in to USD and due to this reason latter currency become more stronger then former currency and
inverse relationship which is strong established between Bitcoin and USD. It can be seen from analysis of chart that from 2015 Bitcoin
become weaker then USD. After year 2015 this trend remain in existance continuosly and increased at more higher rate. This reflect
that in the upcoming time period more and more acceptance of Bitcoin will increase in the market. It can be said that from paper
currency people are shifting to these crypto currency. There is another one more important reason due to which usage of mentioned
electronic currency increased. Purchasing power of USD increased relatively to Bitcoin. Means that in today time period people can
purchase more quantity in USD then Bitcoin. This acts as motivating factor for the people in terms of using more and more dollar
instead of Bitcoin. Those who have bitcoin prefers to convert it in to electronic currency. On this basis it can be said that due to higher
45 | P a g e

purchasing power of dollar relative to USD more and more people are intended to make purchase in latter currency and due to this
reasonn demand of USD increase relative to Bitcoin and value of same increased in comparios to crypto currency.
To identify number of crypto currency introduced
There are number of crypto currencies that are introduced in past couple of years. It can be observed that in the year 2014
maximum number of electonic currencies were introduced in the market which were 8 in number. Some of crypto currency that
introducedn in year 2014 were Auroracoin, Burstcoin, Dash, Monero, MazaCoin, NEM, Nxt, Titcoin and Vertcoin. Apart, from this in
year 2009 many other currencies were introduced and Bitcoin is one of them which is now quite popular among people. Some other
currencies that were introduced in 2012 are Peercoin followed by Bitcoin cash launched in 2017 and along with this BitConnect was
launched in 2017.
It can be said that in past couple of years many electronic currencies are launched. This clearly reflect that graudally
acceptance of these electronic currency increased in the market. In 2017 two new currencies were launched in the market. It can be
said that in upcoming time period this number will further increased because now more and more business firms are accepting Bitcoin
as mode of making payment. Thus, new mining companies are coming in the market that generate units of different crypto currencies.
It depends on the exchange rate and increasing in acceptance of these currencies which will determine success of same in the market.
It is possible that in the market only Bitcoin may become most popular currency that is used for making payments.
To identify trends in number of transaction of Bitcoin which will reflect number of mining firms increase or decrease across the
globe
Research results are clearly indicating that in past time period number of mining firms increased at fast rate. There are multiple
reasosns due to which this number increased. One of them is that number of crypto currencies are introduced in the market and same
are accepted by people across the nations. Thus, with passage of time period more and more mining firms will increase in the market.
There are some other reasons also due to which these firms are increasing across the globe and of them is that number of transactions
increased significently that are done through Bitcoin. It can be observed on anaysis of data that number of transactions in Bitcoin were
46 | P a g e

stable but suddenly increased but at moderate rate. In the year 2014 situation get changed and number of transaction increased at fast
rate from 1500000 to 2700000. Further, in 2016 it is observed that number of transactions increased from 6000000 to 700000. It can
be said that in the mentioned year number of transactions increased but at slow rate. In 2017 slow rate is observed in the use of Bitcoin
and some downward trend is also observed in usage of Bitcoin. It can be said that number of transactions in Bitcoin no doubt
increased but at slpw rate. Consistent increase in transactions in Bitcoin is possible when new miners comes in existance in the
market. This is because miners play an important role in generating new units of crypto currency in the market. It can be said that use
of crypto currencies will increase at fast rate in the upcoming time period. If same trend persist then in that case mining firms will
increase at rapid pace in the market. There is huge probabilityt hat these firms will enhanced at fast pace as use of crypto currencies
increased at fast rate in comparison to earlier years. Due to decrease in purchasing power of Bitcoin people spending capacity in USD
will increase.
To identify relationship between price of Bitcoin and number of vendors
Variables price of Bitcoin and number of vendors are closely interrelated to each other and significent mean difference is
observed between both variables on application of statistical tool. This means that with change in independent variables huge plunge is
observed in dependent variable. This happened because mining companies are those that generate new bitcoin. With increase in
number of transactions and demand of bitcoin mining firms number also increase. Increase in mining firms lead to generation of more
Bitcoins and more transactions. Simple rule apply that if demand of any specific commiodity increase in market at rapid rate its price
also increase. Thus, there is strong relationship between price of Bitcoin and number of vendors. In past couple of years number of
mining firms comes in existance. Till the time there few mining firms in the market. However, trend in Bitcoin demand are clearly
reflecting that in the upcoming time period these mining firms will increase at rapid rate. With passage of time many firms are coming
in this field as there are few players in the market and competition is high. Currently, it is observed that many areas in technology are
obsering downward trend due to varied reasons. For that firms mining business is lucrative options as there are already small number
of firms in the market. This is the best time for the tech giants to enhance their services portfolio and to increase business in the
47 | P a g e

domain where huge opportunitities still are unexplored. There are many things that may lead to increase in number of mining firms. It
can be observed that price of Bitcoin relative to USD is decreasing consistently. This means that people buying power is increasing at
fast rate. Whatever, people were able to buy at specific amount in terms of quantity now can purchase more at same amount. Due to
this reasons Bitocoin is becoming more popular among the people. Further, easy conversion of crypto currency in USD is the another
factor that motivate people to buy more units of Bitcoin. People purchasing power increased due to use of Bitcoin and because of this
reason in upcoming time period demand of crypto currency will increase at fast rate. Hence, mining firms will suerly increase and
with increase in their numbers price of Bitcoin will also increase as its demand elevate consistently in the market.
To identify relationship between inflation and price of Bitcoin.
Inflation refers to the rate at which price of the products are increasing in the market. Inflation rate vary across the nations. It
can be observed that inflation rate is very low in the USA. It increase at very low rate and its value keeps on fluctuating on quarterly
basis on yearly basis. Inflation and price of any commodity are closely related to each other. This is because inflation rate increase
then it means that price of items increased in an economy. Results reflects that there is close association between price of Bitcoin and
inflation rate. Significent mean difference is observed in price of Bitcoin and inflation rate. This reflect that with change in inflation
rate large deviation is observed in price of Bitcoin. This happened because in USA economic conditions are not improved and still
unemployment rate is high. Due to this reason people spending power decrease. In specific amount whatever amount people were able
to purchase now no more then can buy same quantity in same amount. Thus, it can be said that in order to improve purchasing power
people start making use of Bitcoin as with increasing in inflation rate and unemployment people more focused on increasing their
savings. Hence, they buy more units of Bitcoin and convert it in to USD. Thus, demand of Bitcoin got increased in the market and
with increase in its demand price of same increased along with elevation in inflation rate. It can be said that inflation rate and price of
Bitcoin are related to each other.
Price of Bitcoin and other independent variables
48 | P a g e

Price of Bitcoin is affected by number of transactions and its value in USD as well as inflation rate. Results reflects that
although all these factors have impact on dependent variable but they does not significently affect price of Bitocoin then variable value
that is of Bitocoin in USD. This is because investors like to use Bitcoin as safe heaven currency and when USD value increase or
decrease in market investors behaviour get changed and demand of for Bitcoin increase or decrease in market which lead to change in
price of Bitcoin in the market. thus, it can be said that there is significent relationship between USD and Bitcoin.
49 | P a g e

CHAPTER 6: CONCLUSION
On the basis of above discussion it is concluded that Bitcoin is the one of the most important crypto currency that is available
in the market. Currencies can be classified in to two parts crypto currency and paper based currency. It must be noted that paper based
currencies are those that are authorized by nation government for use and making purchase as well as sell. Crypto currency are those
that are not issued by any country government and can be used worldwide. However, their use and acceptability depend on extent to
which they are accepted by any nation government as payment making mechanism. It can be said that there is huge importance of
Bitcoin for the people as it is alternative currency that can be used to make payment across the globe. In past few years demand of
Bitcoin increased at rapid pace and there are number of reasons behind this situation. Increase in people purchasing power due to to
use Bitcoin is one of them. Apart from this, global acceptance of currency is the another reason that is responsible for increase in use
of crypto curency across the globe. It is concluded that there is close relationship between Bitcoin and USD. This is because both
currencies operate at international level and used by people to make payments. It is observed that with increase in value of USD value
of Bitcoin declined declined. On analysis of data of past couple of years it is identified that with USD become more stronger then
Bitcoin. More USD become stronger Bitcoin value reduced. This reflects that there is relationship between American and mentioned
crypto currency. As per current trends conversion rate of units of Bitcoin increased in American dollar and on this basis it can be said
that latter currency become more stronger then crypto currency.
Lots of new trends emerged in respect to crypto currency across the globe and consistent number new of currencies introduced
across the globe. It can be said that there is demand of crypto currency in the market and due to this reason more and more new
currencies are coming the market. It is concluded that in 2014 large number of electonic currencies like Bitcoin were introduced in the
market. It can be observed that there were 12 currencies that were alone introduced in the mentioned year which is 2014. Apart from
this, in year 2015 four currencies were newly launched in the market. Hence, it can be said that with passage of time period popularity
of crypto currency increase among the people. In upcoming time period also number of crypto currencies introduced in the market
can be increased at rapid pace as currencies like Bitcoin are used at large scale for making and receivng payments. With increase in
50 | P a g e

demand of crypto currencies many new will be introduced in the market. Hence, it can be said that in the upcoming time period many
more currencies can be seemed to come in market.
Number of mining firms are increasing which clearly means that there is high demand of Bitcoin in the market because people
are prefering to make number of transactions in to the mentioned currency. It can be said by considering current trends that in the
upcoming time period demand of Bitcoin will increase at rapid rate and due to this reaosn price of mentioned currency may increase at
rapid rate. There are number of firms that do transition in their business and now are preparing to become Bitcoin miners. Thus,
current trends are clearly reflecting that miners are increasing and further their number will enhance.
It is concluded that there is strong relationship between price of Bitcoin and number of vendors. With increase in number of
vendors price of Bitcoin will increase. This is because as number of firms will start accepting payment in form of Bitcoin more and
more people will like to make use of Bitcoin and due to this reason with passage of time value of mentioned currency will increase in
the market. Thus, it can be said that price of Bitcoin and number of vendors are positively coorelated to each other. Moreover, if
number of miners will increase in the market plunge will be observed in price of Bitcoin.
Inflation is the one of the important concept that have due importance for economist and individual person that is working
across low paid job. This is because inflation reflect rate at which price of commodities are increasing in the market. Like inflation
have impact on commodities currencies are also indirectly affected by it in terms of value. With increase in inflation huge variation is
observed in price of Bitcoin as this is proved from analysis of regression results. Thus, it can be said that individuals must cautiously
make purchase of Bitcoin.
It is concluded that in case inflation rise there is huge probability that people will make purchase of more Bitcoins. This is
because currenlty Bitcoin value is less then USD and due to this reason whatever number of units people earlier were able to buy now
can purchase more relative to previous one. Thus, purchasing power of people got increased due to Bitcoin. This is the reason due to
51 | P a g e

which there is huge probability that there is likelihood that in case inflation rise people may make purchase of more units of Bitcoin to
fulfill their needs.
52 | P a g e

REFERENCES
Books and Journals
Ali, S.T. and Halo, F.Z., 2016. Botnets with Bitcoin. In: 2nd Workshop on Bitcoin Research, 19th.
Bonneau and Narayanan, A., 2016. Why buy when you can rent? bribery attacks on Bitcoin consensus.
Brière, M., Oosterlinck, K. and Szafarz, A., 2015. Virtual currency, tangible return: Portfolio diversification with bitcoin. Journal of
Asset Management. 16(6). pp.365-373.
DeWaal, G. and Dempsey, G., 2015. New York BitLicense regulations virtually certain to significantly impact transactions in virtual
currencies. Journal of Investment Compliance. 16(4). pp.59-65.
Dostov, V. and Shust, P., 2014. Cryptocurrencies: an unconventional challenge to the AML/CFT regulators?. Journal of Financial
Crime. 21(3).pp.249-263.
Eyal, I. and Van Renesse, R., 2016, March. Bitcoin-NG: A Scalable Blockchain Protocol. In NSDI (pp. 45-59).
Gandal, N. and Halaburda, H., 2016. Can we predict the winner in a market with network effects? Competition in cryptocurrency
market. Games. 7(3). p.16.
Gipp, B., Meuschke, N. and Gernandt, A., 2015. Decentralized trusted timestamping using the crypto currency bitcoin. arXiv preprint
arXiv:1502.04015.
Hamm, M.P. and et.al., 2013. Education in health research methodology: use of a wiki for knowledge translation. PloS one. 8(5).
p.e64922.
Johnson, B. and et.al., 2014, March. Game-theoretic analysis of DDoS attacks against Bitcoin mining pools. In International
Conference on Financial Cryptography and Data Security (pp. 72-86). Springer, Berlin, Heidelberg.
Kumaresan, R. and Bentov, I., 2014, November. How to use bitcoin to incentivize correct computations. In Proceedings of the 2014
53 | P a g e

ACM SIGSAC Conference on Computer and Communications Security (pp. 30-41). ACM.
L. Greebel, E. and et.al., 2015. Recent key Bitcoin and virtual currency regulatory and law enforcement developments. Journal of
Investment Compliance. 16(1).pp.13-18.
Marshall, A., Altman, D.G. and Holder, R.L., 2010. Comparison of imputation methods for handling missing covariate data when
fitting a Cox proportional hazards model: a resampling study. BMC medical research methodology. 10(1). p.112.
Megha, D. and Rajiv, B., 2013. A methodology for ranking of causes of delay for residential construction projects in Indian
context. International Journal of Emerging Technology and Advanced Engineering. 3(3). pp.396-404.
Morgan, R., 2016. It's All about the Blockchain: Amid the Hoopla over Bitcoin and Other Virtual Currencies, It's the
Underlying Documentation Platform That's Revolutionizing Transactions. ABA Banking Journal. 108(2). p.51.
Nagai, Y., Taura, T. and Sano, K., 2011. Research methodology for the internal observation of design thinking through the creative
self-formation process. In Design Creativity 2010 (pp. 215-222). Springer, London.
Narayanan, A and Goldfeder, S., 2016. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton
University Press.
Ong, B. and et.al., 2015. Evaluating the potential of alternative cryptocurrencies. Handbook of digital currency. Amsterdam: Elsevier.
pp.81-135.
Piotrowska, A.I., 2016. Fields of Potential use of Cryptocurrencies in the Payment Services Market in Poland-Results of an Empirical
Study. Copernican Journal of Finance and Accounting. 5(2). p.201.
Ram, Maroun, W. and Garnett, R., 2016. Accounting for the Bitcoin: accountability, neoliberalism and a correspondence analysis.
Meditari Accountancy Research. 24(1). pp.2-35.
54 | P a g e

Reynolds and Angela S.M. Irwin., 2017. Tracking digital footprints: anonymity within the bitcoin system. Journal of Money
Laundering Control. 20(2). pp.172-189.
S.M. Irwin, A. and Milad, G., 2016. The use of crypto-currencies in funding violent jihad. Journal of Money Laundering Control.
19(4).pp.407-425.
Samtani, S. and Baliga, V., 2015. On monopolistic practices in bitcoin: a coded solution. Indian JL & Tech.. 11. p.106.
Sarantakos, S., 2012. Social research. Palgrave Macmillan.
Scaillet, O and Trevisan, C., 2017. High-frequency jump analysis of the bitcoin market.
Simser, 2015. Bitcoin and modern alchemy: in code we trust. Journal of Financial Crime. 22(2). pp.156-169.
Tschorsch, F. and Scheuermann, B., 2016. Bitcoin and beyond: A technical survey on decentralized digital currencies. IEEE
Communications Surveys & Tutorials. 18(3). pp.2084-2123.
Vasek, M., Thornton, M. and Moore, T., 2014, March. Empirical analysis of denial-of-service attacks in the Bitcoin ecosystem.
In International Conference on Financial Cryptography and Data Security (pp. 57-71). Springer, Berlin, Heidelberg.
Wiseman, S. A., 2016. Property or Currency: The Tax Dilemma behind Bitcoin. Utah L. Rev., p.417.
Maurer, B., Nelms, T.C. and Swartz, L., 2013. “When perhaps the real problem is money itself!”: the practical materiality of Bitcoin.
Social Semiotics. 23(2). pp.261-277.
Van Alstyne, M., 2014. Why Bitcoin has value. Communications of the ACM. 57(5). pp.30-32.
Polasik, and et.al., 2015. Price fluctuations and the use of Bitcoin: An empirical inquiry. International Journal of Electronic
Commerce. 20(1). pp.9-49.
55 | P a g e

Online
Coins, 2017.[Online]. Available through:< https://www.cryptocompare.com/coins/#/btc>. [Accessed on 21st August 2017].
What is Crypto currency everything you need to know, 2017. [Online]. Available through:<
https://blockgeeks.com/guides/what-is-cryptocurrency/>. [Accessed on 21st August 2017].
Piotrowaska and et.al., 2017. [PDF]. Price Fluctuations and the Use of Bitcoin. Available through:<
https://www.ecb.europa.eu/pub/conferences/shared/pdf/retpaym_150604/polasik_paper.pdf>. [Accessed on 21st August 2017].
BTC USD historical data, 2017. [Online]. Available through:< https://in.investing.com/currencies/btc-usd-historical-data>.
[Accessed on 9th Octomber 2017].
56 | P a g e