Abstract
This study analyses the functions of Bitcoin as a medium of exchange, speculative asset, or store of value through an empirical demand model. We disentangle the short-run and long-run trends using the ARDL Bounds testing methodology developed by Pesaran, Shin, and Smith (2001). We conclude that in the short run, the demand for Bitcoin stems from its use as a speculative asset. In the long run, we find that Bitcoin functions both as a speculative asset and medium of exchange. In the short and long run, Bitcoin is not used as a store of value.