A Study on The Asset Characterization of Bitcoin

Seong Il Jang, Jeong Yeon Kim


The increased national utilization of Bitcoin results in multiple complications. Therefore, there are continuous debates on the subject, the main point being how to characterize Bitcoin’s asset nature.

The following study bases, focusing on the function value, justifies Bitcoin’s asset characterization. Using regression analysis to construct relations between gold and indexes such as CPI, DXY, and S&P500 as well as the relation between Bitcoin and the previously mentioned indexes, the question of whether gold and Bitcoin reacted in a similar fashion to the same indicators was examined.

The results conclude that Bitcoin has similarities with gold, showing that it is risk averse and an investable commodity in lieu to profitability when it comes to inflation and currency value. When considered with price volatility, the main force behind the function of investment asset, categorizing Bitcoin as a high-risk financial investment asset rather than as a currency within the system would be more effective for management. 

Full Text:



Baur, D. G. and Dimpfl, T., “Realized Bitcoin Volatility,” SSRN 2949754, pp. 1-26, 2017.

Baur, D. G. and McDermott, T. K. J., “Is Gold a Safe haven? International Evidence,” Journal of Banking & Finance, Vol. 34, No. 8, pp. 1886-1898, 2010.


Choi, D. H. and Lee, J. S., “A Study on the Determinants of Gold Prices-From Alternative Investment Assets Perspective,” The Korean Finance Association, pp. 1-29, 2014.


Crippen, A., “Buffett blasts bitcoin as ‘mirage’: ‘Stay away!’ ,” CNBC. Mar. 14, 2014.

Dempster, N. and Artigas, J. C., “Gold: Inflation Hedge and Long-Term Strategic Asset,” The Journal of Wealth Management, Vol. 13, No. 2, pp. 69-75, 2010.

Dyhrberg, A. H., “Bitcoin, gold and the dollar: A GARCH volatility analysis,” Working Paper Series, UCD Centre for Economic Research, No. 15/20, 2015.


Glaser, F., Zimmermann, K., Haferkorn, M., Weber, M. C., and Siering, M., “Bitcoin- Asset or Currency? Revealing Users’ Hidden Intentions,” Twenty Second European Conference on Information Systems Tel Aviv, pp. 1-14, 2014.

Hyundai reserch institute, “VIP Report: Current Status and Future Prospects of Domestic Virtual Money,” HRI VIP Report, Vol. 563, pp. 1-19, 2014.

Jeong, S. Y., “Characterisation of Virtual Currencies in Tax Law-focused on the Bitcoin Case,” Journal of IFA Korea, Vol. 31, No. 1, pp. 85-140, 2015.

Ji, I. Y. and Chun, K. M., “Digital Currency and Inflation Hedge: Evidence from Bitcoin,” Korean Telecommunications Policy Review, Vol. 23, No. 3, pp. 31-50, 2016.

Jun, J. Y. and Yeo, E. J., “Understanding Bitcoin: From the Perspective of Monetary Economics,” Korea Business Review, Vol. 18, No. 4, pp. 211-239, 2014.

Jun, J. Y., “Understanding and Implications of Bitcoin,” KISDI Primium Report, Vol. 13, No. 8, pp. 1-18, 2013.

Kristoufek, L., “What Are the Main Drivers of the Bitcoin Price? Evidence from Wavelet Coherence Analysis,” Journal of pone, pp. 1-15, 2015.

Lee, D. G., “Status and Implications of Bitcoin,” Bank of Korea Payment Survey, 2013-2.

Lee, J. Y., “Technology Trends and Implications of blockchain,” STERI, Vol. 126, No. 34, pp. 1-10, 2017.

Maeil Business Newspaper, http://news. mk.co.kr/newsRead.php?year=2015&no= 308548(15. 04. 01).

OECD Statistics-stats.oecd.org.

Oh, S. Y. and Lee, C. H., “Block Chain Application Technology to Improve Reliability of Real Estate Market,” The Journal of Society for e-Business Studies, Vol. 22, No. 1, pp. 51-64, 2017.

Park, S. C. and Han, B. S., “An Empirical Tests on the Mediation Effect of US$ Value in the Fluctuations of Gold Prices,” Journal of Korean Academy of International Business Management, pp. 201-220, 2013.

Paul, K., “Bitcoin is Evil,” posted to Conscience of a Liberal, (New York Times blog) Dec. 28, 2013, retrieved from http:// krugman.blogs.nytimes.com/2013/12/28/ bitcoin-is-evil.

Rho, S.-Y., “A Study on the Risk-Return Determinants of Gold Investment,” Journal of Industrial Economics and Business, Vol. 28, No. 3, pp. 1089-1108, 2015.

Salmon, F., “The Bitcoin Bubble and the Future of Currency,” posted to Medium, Apr. 3, 2013, retrieved from http://me dium.com/money-banking/2b5ef79482cb.

The Dong-A Ilbo, http://news.donga.com/ 3/all/20160727/79419863/1#csidxde7ac78112e8d368e7a40b5173999c8.

The JoongAng Ilbo A, http://news.joins. com/article/21965126.

The JoongAng Ilbo B, http://news.joins. com/article/21291743.

The JoongAng Ilbo C, http://news.joins. com/article/21900647.

The Kyunghyang Shinmun A, http://biz. khan.co.kr/khan_art_view.html?artid= 201707032137025&code=920301#csidx1d90d2045d64d95836afdaba5a42752.

The Kyunghyang Shinmun B, http://news. khan.co.kr/kh_news/khan_art_view.html?artid=201708300957021&code=940301#csidxddd561ee014b7629b56c030ca147f30.

Zhu, Y., Dickinson, D., and Li, J., “Analysis on the influence factors of Bitcoin’s price based on VEC model,” Financial Innovation, Vol. 3, No. 1, pp. 1-13, 2017.


  • There are currently no refbacks.