Empirical Evidences for the Impact of Cryptocurrency
Triveni P., Ankita Sinha
Progress in Machines and Systems, Vol. 10, No. 2, 2021.
DOI: https://doi.org/10.6025/pms/2021/10/2/39-54
Link: https://www.dline.info/pms/fulltext/v10n2/pmsv10n2_2.pdf
Abstract:
Todayâ€™s world is becoming globalized and its economy is mostly dependent on financial market. These financial markets have various instruments such as stocks, currencies, commodities, derivatives etc. of various country for trading. The recent introduction of another kind of investment instrument has witnessed more volatility than currency. It is cryptocurrency. Cryptocurrencies are a digital currency maintained by method of encryption, collaborative ledger
maintenance and public verification. Bitcoin is the first cryptocurrency. It is treated both as a currency and an asset. In this paper the relationship of Bitcoin has been compared with other selected asset classes such as EURO, Gold, Crude oil, S & P 500 in terms of price fluctuation shown by each of them over the period of 5 years i.e. from 1st April, 2013 to 31stMarch, 2018. The findings of this paper show that even though bitcoin shows very robust results investing in bitcoin comes with certain risk which are inherent to bitcoin characteristics and bitcoinâ€™s usage.