Modelling Bitcoin Price Volatility and The Bitcoin Mining Dilemma on Global Health

Abstract

In the digital age, Bitcoin remains the first and most notable cryptocurrency. Over the years, its value has increased, making it a desirable digital asset with millions of enthusiasts who trade and invest daily. Bitcoin is highly volatile in comparison with traditional assets and in absolute terms. Understanding its volatility history helps investors decide whether to buy, sell, or hold. A mathematical model that accounts for volatility is essential for these decisions. Unfortunately, Bitcoin’s vast profit potential for investors comes with the dilemma of its negative impact on global environmental health, which needs serious attention. This study aims to model Bitcoin’s return volatility that can support investment decisions and, on the other hand, the negative impact of Bitcoin mining and outline the actions necessary to mitigate it.