Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin

Amid its rapidly increasing usage and immense public interest the subject of Bitcoin has raised profound economic and societal issues. In this paper we undertake economic and econometric modelling of Bitcoin prices. As with many asset classes we show that Bitcoin exhibits speculative bubbles. Further, we find empirical evidence that the fundamental price of Bitcoin is zero. (C) 2015 Elsevier B.V. All rights reserved.