them, bitcoin is considered to be the most popular and the most widely used. After the first release of bitcoin, by generating the ‘block genesis’ in 2009, this currency was gaining rapidly in popularity.Īs in September 2015 ca. It was thought to be independent of any legal or governmental body. His main idea was to build a currency based not on trust but on an algorithm, which cannot be influenced or manipulated. It was created in 2008 by Satoshi Nakamoto, who published an article "Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008, in which he described a concept of virtual, decentralized and independent means of payment, which is based on a cryptographic blockchain protocol. The results have shown that BTC/USD exchange rate volatility is strongly affected by unexpected price jumps during the period (2010–2016), an act that significantly distinguishes it from more stable and predictable EUR/USD exchange rate variability.īitcoin is a virtual currency and a quite new phenomenon. The aim of this research is to compare the bitcoin (BTC) to US Dollar (USD) exchange rate and Euro to USD exchange rate volatility using control charts. The analysts, however, underline that the bitcoin is too volatile and unpredictable, so it cannot compete against the main currencies. Time confirmed that bitcoin has gained on popularity and the exchange rate to the main currencies rose in a dynamic way. The opponents perceived this as a temporary curiosity with no future. The accessibility, where no financial infrastructure is ensured or where either limited or no international agreements exist between financial and banking institutions was also an advantage. Its adherents saw in it an alternative to the traditional means of payments allowing the performance of real-time transactions at low costs. Under 600 different virtual currencies, the most successful was bitcoin. Virtual currencies have been evolving in a dynamic way in the last few years. The focus of this research is bitcoin’s variability and its comparison with the variability of the EURO/USD exchange rate.
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