Bitcoin: A Seemingly Rampant Elevator, or is Someone Pushing its Buttons? : A Case Study on Bitcoin’s Fluctuations in Price and Concept

Abstract:

This study looks at the price mechanism of the digital quasi-currency bitcoin. Through statistical analysis of secondary data a probable significant results regarding correlation and regression between price and different independent variables have been established. The final analysis is pointing towards network effects being a part of the determinants for the crypto-currency’s price.

Complimentary to the quantitative study explained above, an implementation of hermeneutic analysis based on secondary theoretical sources, journalistic opinion and a professional qualified judgment has aided the author and study in conceptual understanding. This interpretation has semantic character, and takes a Socratic kickoff regarding the nature of bitcoin as a financial instrument. The analysis runs back and forth throughout the course of the study and finally intertwines with qualitative results in the discussion. It is the author’s impression that a significant dimorphism surrounds bitcoin, calling for a conceptual differentiation leading to practical rethinking.

The study takes the shape of a case-study conducted over four months. The author’s location during the process of writing was Stockholm Sweden, but the gathered data is of transnational character.