CeBER Working Paper No. 2023-2| Flip the coin: Heads, tails or cryptocurrencies?

22 janeiro, 2023≈ 2 mins de leitura

Encontra-se publicado um novo working paper do Centre for Business and Economics Research (CeBER), “Flip the coin: Heads, tails or cryptocurrencies?” dos autores António Portugal Duarte, Fátima Teresa Sol Murta, Nuno Baetas da Silva e Beatriz Rodrigues Vieira.


This paper analysis and compares the volatility of seven cryptocurrencies – Bitcoin, Dogecoin, Ethereum, BitcoinCash, Ripple, Stellar and Litecoin – to the volatility of seven centralized currencies – Yuan, Yen, Canadian Dollar, Brazilian Real, Swiss Franc, Euro and British Pound. We estimate GARCH models to analyze their volatility. The results point to a considerably high volatility of cryptocurrencies when compared to that of centralized currencies. Therefore, we conclude that cryptocurrencies still fall far short of fulfilling all the requirements to be considered as a currency, specifically regarding the functions of store of value and unit of account.


Centralized currencies, cryptocurrencies; GARCH models; volatility