Open AccessThe Liquidity of Bitcoin
Author(s) -
Hio Loi
Publication year - 2017
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v10n1p13
Subject(s) - market liquidity , monetary economics , cryptocurrency , economics , business , econometrics , financial economics , computer science , computer security
This paper studies the liquidity of Bitcoin using the time series daily data over the period 1/1/2014 to 12/31/2015. Based on the available data for Bitcoin, five liquidity measures are chosen to compare the liquidities among five Bitcoin exchanges and the liquidities of different sizes of stocks. The results suggest that the liquidity of Bitcoin depends on the choice of the Bitcoin exchanges, and Bitfinex, one of the Bitcoin exchanges, provides the highest liquidity for Bitcoin trading. Moreover, the results indicate that, on average, stocks are more liquid than Bitcoin.