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Financial Time Series: Applying and Analyzing Time Varying Volatility Models in the Cryptocurrency Bitcoin

Abstract

What is Bitcoin and how does it work? We explore the popular cryptocurrency using time series analysis. We demonstrate how one can model the returns and volatility of the asset with GARCH models. We then pose a discussion of what the future of Bitcoin is, its identity as a so called “currency” and its evolving identity as a financial asset.

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VonHegel, M., (2017) “Financial Time Series: Applying and Analyzing Time Varying Volatility Models in the Cryptocurrency Bitcoin”, Capstone, The UNC Asheville Journal of Undergraduate Scholarship 31(1).

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