How Does Price of Bitcoin Volatility Change?

Abstract

The trading volume of Bitcoin has been increasing rapidly since the beginning. Bitcoin is a cryptocurrency. Bitcoin is not a legal currency but a private monetary system that manages by itself and does not depend on governments or central banks. Some fear the increase in Bitcoin usage as it is quite different from traditional currencies and is free from control or regulations by monetary authorities; however, its usage has been spreading all over the world. This paper examines how the price of Bitcoin volatility changes empirically. The empirical results show that the there is a difference between short-term volatility and long-term volatility. Traders should see not only the short-term movements in volatility but also long-term ones.