The correlation between Bitcoin and conventional currencies

In today's technology-oriented world, electronic devices are becoming increasingly important for everyone. Because of this, the emergence of cryptocurrency seems natural. Thus, there is an urgent need to understand the impact brought by cryptocurrency to the world financial system. As a type of currency, how will the cryptocurrency influence the other types of traditional currency? We use data related to Bitcoin to illustrate the connection between those two types of currency. By applying machine learning to the data, we found out that there is scarcely any correlation between Bitcoin value and conventional currency value, with the exception of the USD. With this result, we hope to contribute to the establishment of a better currency system and therefore, provide the world with a healthier economic environment. At the same time, the economic society may get a clearer understanding of the interrelationship between the new currency---Bitcoin and several typical examples of conventional currency. Meanwhile, throughout the research, we can acknowledge the main difference on investing strategies between conventional currencies and cryptocurrencies, which will therefore, help us make a wiser decision when it comes to the purchases of money power.