| dc.description.abstract | Bitcoin is a 100% digital asset, only backed by the trust of the users. The crypto-currency
was created as an entirely decentralized currency with no regulatory body to adjust the bitcoin market. This study argues that as of today, bitcoin lacks some the characteristics that
traditional currencies inhibit, and it should be viewed as a digital commodity, more than a
currency. I use a vector error correction model to test if there exists any form of cointegrating relationship between traditional, commodities and bitcoin. The VECM models find no
cointegrating relation between nominal currency rates and bitcoin implied currency rates,
there are however an indirect cointegrating relationship between bitcoin and the nominal currency. Changes in Bitcoin prices leads to a disequilibrium between gold and bitcoin. To reach
equilibrium, the gold prices will change, this change in gold prices will then lead to a disequilibrium between gold and the nominal exchange rates, and this will lead to a change in the
gold price. The VECM models do on the other hand find a direct cointegrating relationship
between implied gold and bitcoin exchange rates. The study also find that shocks on the implied Bitcoin exchange rate has no significant effect on other exchange rates, while shocks in
the nominal and gold exchange rate have a significant effect on the bitcoin exchange rate. | nb_NO |