Bachelor Thesis from the year 2017 in the subject Business economics - Investment and Finance, grade: 1,3, University of Tubingen (Fachbereich Wirtschaftswissenschaft), language: English, abstract: The remainder of this Bachelor Thesis is structured as follows. Firstly, Bitcoin and its characteristics as a cryptocurrency are presented, literature on Bitcoin is reviewed and the functioning of the Bitcoin market is explained. Secondly, the estimation model proposed by Roll (1984) is presented and one possible extension of this model is discussed. Thirdly, the two models are applied to data on Bitcoin, the USD/EUR exchange rate and two stocks respectively. Bitcoin is now in the centre of attention as growing transaction numbers show the rising popularity of the cryptocurrency. Media as well as bankers and financial institutions discuss Bitcoin's potential for changing the traditional landscape of financial markets. Recently, in October 2016, the European Central Bank demanded stricter regulatory rules for cryptocurrencies such as Bitcoin because a growing adoption of Bitcoin as a currency would dilute the Central Bank's control over the money supply in the Euro area. This Bachelor Thesis will deal with the question of whether Bitcoin shows the tipical characteristics of a currency or rather an investment asset such as stocks or commodities. The answer to this question is highly important for assessing the disruptive potential of Bitcoin and its influence on major currencies.