Year 2018, Volume 5 , Issue 4, Pages 250 - 261 2018-12-30

IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS

Mustafa Cikrikci [1] , Mustafa Ozyesil [2]


Purpose - The main purpose of this study in determine whether Bitcoin is becoming an alternative investment option compared to other

financial instruments in Turkey. To perform analysis for this purpose, we created sample includes Bitcoin, Bist 100 National Index, Bond,

Euro and Gold. We calculated daily returns in terms of % for each type of instrument for the period range from 02.02.2012 to 17.12.2018.

Methodology - In the study, we tested the stationarity of the series and the causality relationships between the series through the nonlinear

unit root and causality tests. Stationarity of the series and causality relations between them are determined with the help of charts.

Both in unit root test and in causality test, firstly we obtained test statistics and normalized them by using critical values then transferred

them to the charts. In order to decide about when test statistics is higher than critical values null hypothesis is rejected.

Findings- Bitcoin, Usd, Gold and Bond are found non-stationary for the whole period. We find out that returns of Euro is more stable than

Usd. Bitcoin has been fluctuating during all period except for first months of 2013 while Gold’s returns are intensively volatile when politic

and economic risks are increasing. This show investors in Turkey still consider Gold as safe port for their investments. Usd currency is

volatile for all period because of its increasing demand all over the world. In causality test we observed that there is a causality relation

from Bitcoin’s returns to Bist 100 returns. This result shows that Bitcoin is becoming an alternative (substitute) investment tool for

domestic and foreign investors compared to Borsa Istanbul. There is more causality relation between Bitcoin and Gold than Bitcoin and Bist

100.

Conclusion- Based on the findings of this analysis, , it may be accepted that Bitcoin has been becoming an alternative investment/savings

tool for the Turkey case. Regulatory institutions should create a required legal framework for the Bitcoin because Bitcoin has a great

potential to prevent of tax evasion, the terminate the informal economy and eliminate intermediation costs.

Bitcoin, Non- Linear Unit Root Test, Non- Linear Causality Test, Varying Time Series, Borsa Istanbul
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Primary Language en
Subjects Social
Journal Section Articles
Authors

Orcid: 0000-0002-2805-6079
Author: Mustafa Cikrikci (Primary Author)

Orcid: 0000-0002-4442-7087
Author: Mustafa Ozyesil

Dates

Publication Date : December 30, 2018

Bibtex @research article { rjbm506074, journal = {Research Journal of Business and Management}, issn = {}, eissn = {2148-6689}, address = {}, publisher = {PressAcademia}, year = {2018}, volume = {5}, pages = {250 - 261}, doi = {10.17261/Pressacademia.2018.1009}, title = {IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS}, key = {cite}, author = {Cikrikci, Mustafa and Ozyesil, Mustafa} }
APA Cikrikci, M , Ozyesil, M . (2018). IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS. Research Journal of Business and Management , 5 (4) , 250-261 . DOI: 10.17261/Pressacademia.2018.1009
MLA Cikrikci, M , Ozyesil, M . "IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS". Research Journal of Business and Management 5 (2018 ): 250-261 <https://dergipark.org.tr/en/pub/rjbm/issue/42049/506074>
Chicago Cikrikci, M , Ozyesil, M . "IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS". Research Journal of Business and Management 5 (2018 ): 250-261
RIS TY - JOUR T1 - IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS AU - Mustafa Cikrikci , Mustafa Ozyesil Y1 - 2018 PY - 2018 N1 - doi: 10.17261/Pressacademia.2018.1009 DO - 10.17261/Pressacademia.2018.1009 T2 - Research Journal of Business and Management JF - Journal JO - JOR SP - 250 EP - 261 VL - 5 IS - 4 SN - -2148-6689 M3 - doi: 10.17261/Pressacademia.2018.1009 UR - https://doi.org/10.17261/Pressacademia.2018.1009 Y2 - 2018 ER -
EndNote %0 Research Journal of Business and Management IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS %A Mustafa Cikrikci , Mustafa Ozyesil %T IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS %D 2018 %J Research Journal of Business and Management %P -2148-6689 %V 5 %N 4 %R doi: 10.17261/Pressacademia.2018.1009 %U 10.17261/Pressacademia.2018.1009
ISNAD Cikrikci, Mustafa , Ozyesil, Mustafa . "IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS". Research Journal of Business and Management 5 / 4 (December 2019): 250-261 . https://doi.org/10.17261/Pressacademia.2018.1009
AMA Cikrikci M , Ozyesil M . IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS. RJBM. 2018; 5(4): 250-261.
Vancouver Cikrikci M , Ozyesil M . IS BITCOIN BECOMING AN ALTERNATIVE INVESTMENT OPTION FOR TURKEY? A COMPARATIVE INVESTIGATION THROUGH THE NON-LINEAR TIME SERIES ANALYSIS. Research Journal of Business and Management. 2018; 5(4): 261-250.