TY - THES ID - 135793599 TI - Money, Banking, and Bitcoin The Leading Cryptocurrency as a Store of Value and the Relationship between Inflation and Bitcoin Usage AU - Medina Rodriguez, Ricardo AU - Roukny, Tarik AU - KU Leuven. Faculteit Economie en Bedrijfswetenschappen. Opleiding Master of Business Administration (Programme being phased out as from 2018-2019) (Brussels) PY - 2020 PB - Leuven KU Leuven. Faculteit Economie en Bedrijfswetenschappen DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:135793599 AB - Much current research on cryptocurrency has raised doubts about its viability as a store of value, largely because of its volatility. To contribute to this research gap, data on inflation (CPI) and Bitcoin usage were analysed from three large economies (Brazil, Japan, and India) in order to test the relationship between these two variables. The data are analysed with respect to a model representing the decision problem of both governments and individuals, who decide monetary policy and whether to substitute Bitcoin for a national currency. The results from Brazil and India support the hypothesis that CPI and Bitcoin usage positively correlate, while the results from Japan are inconclusive but not contrary to the hypothesis. Together, they suggest that individuals may substitute Bitcoin for traditional currencies, particularly when expected inflation is significant. These findings merit future investigation with larger samples in order to test the relative sensitivity of Bitcoin to fluctuation in inflation and other economic factors. The study contributes to the understanding of Bitcoin and its potential as an alternative to national currency as well as its capacity to serve as a mainstream form of money. ER -