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Cryptocurrency in context of fiat money functions


  • Levulytė, Laura
  • Šapkauskienė, Alfreda


The purpose of this paper is to investigate the ability of cryptocurrencies to fulfill three main money functions: medium of exchange, a unit of account, and store of value by applying a designated methodical approach to examine each currency function separately. The paper contributes to the scant literature on the subject as well as combines the accumulated knowledge of cryptocurrencies and comprehensively examines cryptocurrencies according to the mentioned functions. In this paper, cryptocurrencies are examined and studied not only from the perspective of strong fiat currencies but also include the currencies of developing countries, thus expanding the range of research on this topic and providing a broader approach. The cryptocurrencies examined are Bitcoin, Ethereum, and Ripple. In addition, data were collected on major exchange rates with respect to the Euro, namely, the United States dollar, Australian dollar, Swiss franc, Swedish krona, Japanese yen, Chinese Yuan, Russian ruble, Mexican peso, Argentine peso, South African rand. Finally, the following major stock market indices were selected: S&P500, FTSE, as well as commodity Gold. The study applied statistical analysis methods, Spearman correlation, cluster analysis, linear regression.

Suggested Citation

  • Levulytė, Laura & Šapkauskienė, Alfreda, 2021. "Cryptocurrency in context of fiat money functions," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 44-54.
  • Handle: RePEc:eee:quaeco:v:82:y:2021:i:c:p:44-54
    DOI: 10.1016/j.qref.2021.07.003

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