Faculty of Commerce, Law and Management
University Of Witwatersrand
07 September 2016 / The purpose of this study is to identify whether the Law of One Price theory holds across bitcoin exchanges in different countries given the uniquely defining characteristics of bitcoin. This was explored using Johansen’s Cointegration to extract the economic relationship between the time series sampled. It was demonstrated in the results that the Law does not always hold, however this was dependent on which bitcoin exchange is being used. Prices across the same bitcoin exchanges were likely to hold because of similar transaction costs and the ease of trading. For the time series where the Law of One price did not hold, the explanatory factors could include the bitcoin market illiquidity and purposeful disequilibrium.
Bitcoin is a fairly new concept and has been press-worthy in the finance, economic and technological spheres. In South Africa, awareness of the digital currency is low, as is an understanding of its features and the impact on the economy as well as society as a whole. This study therefore aims to explore bitcoin in a finance context, in terms of the Law of One Price, while briefly gaining an understanding of the digital currency itself. / MT2017
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/22213 |
| Date | January 2016 |
| Creators | Naidu, Sriya |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | Online resource (69 leaves), application/pdf |
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