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The drivers of Bitcoin trading volume in selected emerging countries

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  • Bouraoui, Taoufik

Abstract

While most of the debates about cryptocurrencies are centered on the global Bitcoin market, in this article, we focus on local Bitcoin trading volume in 21 emerging countries. In particular, we attempt to determine the drivers of Bitcoin trading volume in these countries over the period August 1st, 2015 – June 2nd, 2018. Based on VECM and ARDL models, we find evidence of significant relationship between the local Bitcoin trading volume in each country and the associated banking system access, especially in the short-run. Moreover, altcoins (Ethereum, Ripple) prices are shown to affect positively and significantly the local Bitcoin trading volume for most countries in the long-run (VECM results) and the short-run (ARDL results).

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  • Bouraoui, Taoufik, 2020. "The drivers of Bitcoin trading volume in selected emerging countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 218-229.
    • Handle: RePEc:eee:quaeco:v:76:y:2020:i:c:p:218-229
    DOI: 10.1016/j.qref.2019.07.003
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    Cited by:

    1. Marmora, Paul, 2022. "Does monetary policy fuel bitcoin demand? Event-study evidence from emerging markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    2. Fairouz Mustafa & Suman Lodh & Monomita Nandy & Vikas Kumar, 2022. "Coupling of cryptocurrency trading with the sustainable environmental goals: Is it on the cards?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1152-1168, March.
    3. Yarovaya, Larisa & Zięba, Damian, 2022. "Intraday volume-return nexus in cryptocurrency markets: Novel evidence from cryptocurrency classification," Research in International Business and Finance, Elsevier, vol. 60(C).
    4. Yousaf, Imran & Yarovaya, Larisa, 2022. "The relationship between trading volume, volatility and returns of Non-Fungible Tokens: evidence from a quantile approach," Finance Research Letters, Elsevier, vol. 50(C).
    5. Almeida, José & Gonçalves, Tiago Cruz, 2023. "A systematic literature review of investor behavior in the cryptocurrency markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    6. Jiménez, Inés & Mora-Valencia, Andrés & Perote, Javier, 2023. "Multivariate dynamics between emerging markets and digital asset markets: An application of the SNP-DCC model," Emerging Markets Review, Elsevier, vol. 56(C).
    7. Marmora, Paul, 2021. "Currency substitution in the shadow economy: International panel evidence using local Bitcoin trade volume," Economics Letters, Elsevier, vol. 205(C).

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    More about this item

    Keywords

    Bitcoin; Cryptocurrencies; Banking system access; Altcoins; VECM; ARDL;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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