# The Economics of BitCoin Price Formation

**Authors:** Pavel Ciaian, Miroslava Rajcaniova, d'Artis Kancs  
**arXiv:** [1405.4498](https://arxiv.org/abs/1405.4498)  
**Date:** 2014-05-18  
**Summary page:** https://www.summarizepaper.com/fr/paper/1405.4498v1/

## Abstract

This paper analyses the relationship between BitCoin price and supply-demand fundamentals of BitCoin, global macro-financial indicators and BitCoin attractiveness for investors. Using daily data for the period 2009-2014 and applying time-series analytical mechanisms, we find that BitCoin market fundamentals and BitCoin attractiveness for investors have a significant impact on BitCoin price. Our estimates do not support previous findings that the macro-financial developments are driving BitCoin price.