Author(s)

Jinyu Song ¹

Affiliation(s)

¹ School of Economics and Resource Management, Beijing Normal University, No. 19, Xinjiekouwai Street, Beijing, 100875, China

Corresponding Author

ABSTRACT

In this paper, the comprehensive comparison of digital currency worldwide is shown and development present situation and the risk for the challenge uses GSADF method to examine digital currency bubbles, and describes the price trends and price series of Bitcoin, Litecoin and Ripple from 2016 to 2021, measuring the characteristics of digital currency price fluctuations. Through the comparative analysis of the data series, the existence of bubbles and the causes of bubbles are studied, and the reasons for the bubble of digital currency price fluctuations are comprehensively analyzed. This paper concludes that investor speculation, government supervision and the international macroeconomic situation will affect the price fluctuation of digital currency, and gives methods and policy suggestions to deal with risks.

KEYWORDS

CITE THIS PAPER

Jinyu Song, Research on the Development Trend and Risk of Digital Currency——Based on the GSADF. Financial Engineering and Risk Management (2022) Vol. 5: 8-13. DOI: http://dx.doi.org/10.23977/ferm.2022.050602.

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