Bitcoin and the South Sea Company: A comparative analysis

This paper examines historical Bitcoin price data together with the of a well-known and generally accepted asset bubble (the 1720 South Sea Bubble) aim identifying possible similarities. In order to find empirical evidence speculative tendencies, article analyses distribution moments autoregressive models time series both assets. Results show that daily prices assets—taking into account one year before after maximum level—clearly two phases expansion subsequent crash. Furthermore, various similarities between Bubble can be found in descriptive statistics, such as mean return, standard deviation, skewness. Statistical tests also several explosive Company returns, which implies assets exhibit more than financial bubble.