THE IMPACT OF MACROECONOMIC INDICATORS ON BITCOIN: A CASE STUDY ON PAKISTAN

Abstract

Modern-day revolution is brought on by cryptocurrencies. Both the terms cryptocurrency & currency describe means of exchanging goods & services. In system that uses cryptocurrencies, every transaction is preprogrammed. Underlying blockchain technology governs transactions by using consensus mechanisms, hash algorithms, and public and private key encryption, doing away with the need for user to have faith in the counterparty. In this study, impact of macro-factors on bitcoin in Pakistan was examined. The relevance of this study is that the majority of people are ignorant of bitcoin to spread awareness of bitcoin and how to use them among the general audience. The macroeconomic indicators (GDP, INF, Exchange, & Gold) were monitored on a quarterly basis between JAN 2016 and DEC 2021. The E-view program and numerous tests on secondary data were also used in this inquiry. In Pakistan, there is no long-term link. Bitcoin's short-term relationships with Pakistan's GDP, INF, ER, and gold. In short term, there is a link between bitcoin and the exchange rate.