The Effect of Policy Information on Virtual Currency Price Volatility - Take Bitcoin as an Example

摘要

With the development of Internet, virtual currency raises more and more concern. And Bitcoin is the most popular one among all kinds of virtual currencies. This paper pays attention to the price volatility of Bitcoin and studies the effect of policy information on Bitcoin price volatility through event study. The result shows that policy information will have a significant and continued effect on Bitcoin price volatility, revealing the policy risk of virtual currencies. Each country and region should take correct attitude to virtual currencies, the financial innovation on the Internet, and take it under supervision with normalization.