Class Year

2019

Date

4-17-2019

Document Type

Thesis

Distinguished Thesis

yes

Degree Name

Bachelor of Arts (BA)

Department or Program

Economics, Business, and Finance

Second Department or Program

Philosophy

First Advisor

Amanda J. Felkey

Second Advisor

Chad McCracken

Third Advisor

Muris Hadzic

Abstract

The past few years have marked the rapid emergence of cryptocurrency, a new commodity that has taken the investor community by storm. Like the South Sea Bubble and Dot-Com Bubble, cryptocurrencies temporarily generated astronomical returns. Using funding data as well as controlling for Bitcoin difficulty and confirmation times, NASDAQ Index returns, gold returns, bullish investor sentiment, and Bitcoin tweet counts, it can be concluded that cryptocurrency in fact experienced two separate bubbles between 2012 and 2018. Furthermore, by understanding the drivers to the Crypto Bubbles and other historical bubbles alike, I offer analysis regarding the potential for blockchain technology – the underlying technology of cryptocurrency.

Language

English


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