Application of ARCH model to estimate a range of bitcoin value

Authors

DOI:

https://doi.org/10.5377/ryr.v1i55.14410

Keywords:

Bitcoin, Trading, Box-Jenkins, ARCH, Estimation

Abstract

Since September 2021, El Salvador became the first country to adopt bitcoin as legal tender, which can be used as an investment instrument. The volatility of the bitcoin value is a risk that the investor must assume; but at the same time it opens the doors for trading. However, trading requires knowledge of multiple skills for the analysis of the stock market and the execution of a strategy for buying and selling operations at the right time. According to surveys conducted by private universities in the country, the population does not know about bitcoin and therefore how to invest in it. Given this situation, this study discusses the creation of a mathematical model to estimate the bitcoin price interval with the aim that salvadorans identify the optimal values with which it can operate to obtain a profit.

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Author Biographies

Franklin Iván Argueta Bermúdez, Universidad Francisco Gavidia

Licenciado en Matemáticas por la Universidad de El Salvador. Investigador del Centro de Modelaje Matemático “Carlos Castillo-Chavez” en la Universidad Francisco Gavidia

James Edward Humberstone Morales, Universidad Francisco Gavidia

Ingeniero en Ciencias de la Computación por la Universidad Francisco Gavidia. Maestro en Informática Aplicada a Redes por la Universidad Francisco Gavidia. Docente de la Facultad de Ingeniería y Sistemas de la Universidad Francisco Gavidia. Investigador del Centro de Modelaje Matemático “Carlos Castillo-Chavez” en la Universidad Francisco Gavidia

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Published

2022-06-24

How to Cite

Argueta Bermúdez, F. I. ., & Humberstone Morales, J. E. . (2022). Application of ARCH model to estimate a range of bitcoin value. Reality and Reflection, 1(55), 14–27. https://doi.org/10.5377/ryr.v1i55.14410

Issue

Vol. 1 No. 55 (22)

Section

Articles

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