Price Stability of Cryptocurrencies as a Medium of Exchange

We present positive evidence of price stability cryptocurrencies as a medium exchange. For the sample years from 2016 to 2020, prices major are found be stable, relative financial assets. Specifically, after filtering out less-than-one-month cycles, we investigate daily returns in US dollars (i.e., Bitcoin, Ethereum, and Ripple) well their comparators legal tenders, Euro Japanese yen, stock indexes, S&P 500 MSCI World Index). examine filtered using three different measures. First, Pearson correlations increased later our sample. Second, based on dynamic time-warping method that allows lags leads relations, similarities with have been even since 2016. Third, check whether cumulative sum errors predict cryptocurrency prices, assuming stable relations comparators' returns, does not exceeds bounds implied by Black-Scholes model. This test, other words, reject efficient market hypothesis.