Scholarly Research Excellence

Digital Open Science Index

Commenced in January 2007 Frequency: Monthly Edition: International Publications Count: 29122


Select areas to restrict search in scientific publication database:
10006245
Analyzing the Effects of Adding Bitcoin to Portfolio
Abstract:
This paper analyses the effect of adding Bitcoin, to the portfolio (stocks, bonds, Baltic index, MXEF, gold, real estate and crude oil) of an international investor by using daily data available from 2nd of July, 2010 to 2nd of August, 2016. We conclude that adding Bitcoin to portfolio, over the course of the considered period, always yielded a higher Sharpe ratio. This means that Bitcoin’s returns offset its high volatility. This paper, recognizing the fact that Bitcoin is a relatively new asset class, gives the readers a basic idea about the working of the virtual currency, the increasing number developments in the financial industry revolving around it, its unique features and the detailed look into its continuously growing acceptance across different fronts (Banks, Merchants and Countries) globally. We also construct optimal portfolios to reflect the highly lucrative and largely unexplored opportunities associated with investment in Bitcoin.
Digital Object Identifier (DOI):

References:

[1] Satoshi Nakamoto, Bitcoin: A Peer-to-Peer Electronic Cash System, 2008 Available at https://Bitcoin.org/Bitcoin.pdf
[2] Nirupama Devi Bhaskar, Lam Pak Nian, David LEE Kuo Chuen, Chapter 27 – Bitcoin IPO, ETF, and Crowdfunding.
[3] Lam Pak Nian, David LEE Kuo Chuen Sim Kee Boon, Introduction to Bitcoin, Institute for Financial Economics, Singapore Management University, Singapore.
[4] Nirupama Devi Bhaskar, David LEE Kuo Chuen, Chapter 3 – Bitcoin Mining Technology.
[5] Blockchain charts. “Blockchain Charts The most trusted source for data on the Bitcoin blockchain.” https://blockchain.info/charts/total-Bitcoins
[6] CME group, “CME Group and Crypto Facilities Announce Launch of Bitcoin Reference Rate and Real-Time Index.” http://investor. cmegroup.com/investor-relations/releasedetail.cfm?ReleaseID=968356
[7] Cieśla Kacper. https://Bitcoinity.org/markets/list?currency=ALL&span=6m
[8] Ajibola Adetilewa Ogunbadewa, The ‘Bitcoin’ Virtual Currency: A Safe Haven for Money Launderers?
[9] Master Thesis Matthias Herrmann, Detailed Analysis “Implementation, evaluation and detection of a double spend-attack on Bitcoin April 2.
[10] Seth, Shobhit. “Bitcoin ETFs: How Do They Work?” http://www.investopedia.com/articles/investing/073015/Bitcoin-etfs-how-do-they-work.asp
[11] Tradewave, Inc. “Build your own automated Bitcoin trading strategy.” https://tradewave.net/
[12] Biller, David. “IMF Sees Venezuela Inflation Rocketing to 720 Percent in 2016.” http://www.bloomberg.com/news/articles/2016-01-22/imf-sees-venezuela-inflation-rocketing-to-720-percent-in-2016
[13] CBC News. “Bitcoins aren't tax exempt, Revenue Canada says.” http://www.cbc.ca/news/business/Bitcoins-aren-t-tax-exempt-revenue-canada-says-1.1395075
[14] Singh, Sony, and Alberto Vega. “Why Latin American economies are turning to bitcoin.” https://techcrunch.com/2016/03/16/why-latin-american-economies-are-turning-to-Bitcoin/
[15] bitValor. “Relatórios Mensais do Mercado Brasileiro de Bitcoin.” http://bitvalor.com/relatorios
[16] Campbell, Rebecca.” Code to Inspire: Bitcoin Gives Afghan Women Financial Freedom.” https://Bitcoinmagazine.com/articles/code-to-inspire-Bitcoin-gives-afghan-women-financial-freedom-1460652348
[17] Camdir, John. “Caricoin Launches Bitcoin Wallet for the Financially Underserved in the Caribbean.” https://Bitcoinmagazine.com/articles/ caricoin-launches-Bitcoin-wallet-for-the-financially-underserved-in-the-caribbean-1466435907
[18] World Bank website. “Massive Drop in Number of Unbanked, says New Report.” http://www.worldbank.org/en/news/press-release/ 2015/04/15/massive-drop-in-number-of-unbanked-says-new-report
[19] Coinfox. “A concise history of the bitcoin ban in Russia.” http://www.coinfox.info/news/legislation/5982-a-concise-history-of-the-bitcoin-ban-in-russia
[20] HassOnline Software.” Haasbot Trade Bots.”
[21] Bitcoin Analytics. “X-arbitrage tab.” http://Bitcoin-analytics.com/
[22] Blockchain Charts. “Blockchain Charts The most trusted source for data on the Bitcoin blockchain.” https://blockchain.info/charts
[23] Coindesk Price and Data “Bitcoin Legality - Map of Regulatory Landscape.” http://www.coindesk.com/Bitcoin-legal-map/
[24] Bajpai, Prableen. “Countries Where Bitcoin Is Legal & Illegal (DISH, OTSK).” http://www.investopedia.com/articles/forex/041515/countries-where-Bitcoin-legal-illegal.asp#ixzz4GfkEerfy
[25] Bitcoin Charts. “Exchange volume distribution-by currency.” http://Bitcoincharts.com/charts/volumepie/
[26] Giftoff Gift Cards. https://giftoff.com/digital-currencies
[27] Bitcoin spending across the world and merchants. http://bitcoin.travel/categories/
[28] “Where to Spend Bitcoins UK.” http://www.wheretospendBitcoins.co.uk/
[29] Coinfox News, “BitPay transaction volume increases 110% globally, 1747% in Latin America.” http://www.coinfox.info/news/4565-bitpay-transaction-volume-increases-110-globally-1747-in-latin-america
[30] Jain, Paras,” Bitcoin: A Peer-to-Peer Electronic Cash System”, http://www.slideshare.net/beingjainparas/bitcoin-seminar-32542561
[31] Coinbase.com, “Buy/Sell/Deposit & Withdraw fees”, https://support.coinbase.com/customer/portal/articles/2109597-buy-sell-bank-transfer-fees
[32] Coinbase.com, “Buy and Sell Digital Currency.” https://www.coinbase.com/?locale=en
[33] BitcoinIRA, “Average fee”, Bitcoinira.com https://www.coinbase.com/?locale=en
[34] Coindesk Price and Data “Bitcoin Legality - Map of Regulatory Landscape.” http://www.coindesk.com/Bitcoin-legal-map/
[35] Worldbank Reports“Massive Drop in Number of Unbanked, says New Report”, Worldbank.org, http://www.worldbank.org/en/news/press-release/2015/04/15/massive-drop-in-number-of-unbanked-says-new-report
[36] Demirguc-Kunt, Asli, Leora Klapper, Dorothe Singer, Peter Van Oudheusden “ Global Findex Database”, Worldbank.org http://documents.worldbank.org/curated/en/187761468179367706/pdf/WPS7255.pdf
[37] Wong, Ian Joon,“Goldman Sachs Report Says Bitcoin Could Shape 'Future of Finance”, CoinDesk.com http://www.coindesk.com/goldman-sachs-report-says-bitcoin-could-shape-future-of-finance/
[38] Horlacher, Jonathan,“Bitcoins – Money Without Physical Form”, Credit Suisse.com, https://www.credit-suisse.com/us/en/articles/articles/news-and-expertise/2015/03/en/bitcoins-money-without-physical-form.html
[39] Cryptocoins News, “400 European Banks Accept Bitcoin Purchase Agreement” cryptocoinsnews.com https://www.cryptocoinsnews.com/400-european-banks-accept-bitcoin-purchase-agreement/

Vol:12 No:12 2018Vol:12 No:11 2018Vol:12 No:10 2018Vol:12 No:09 2018Vol:12 No:08 2018Vol:12 No:07 2018Vol:12 No:06 2018Vol:12 No:05 2018Vol:12 No:04 2018Vol:12 No:03 2018Vol:12 No:02 2018Vol:12 No:01 2018
Vol:11 No:12 2017Vol:11 No:11 2017Vol:11 No:10 2017Vol:11 No:09 2017Vol:11 No:08 2017Vol:11 No:07 2017Vol:11 No:06 2017Vol:11 No:05 2017Vol:11 No:04 2017Vol:11 No:03 2017Vol:11 No:02 2017Vol:11 No:01 2017
Vol:10 No:12 2016Vol:10 No:11 2016Vol:10 No:10 2016Vol:10 No:09 2016Vol:10 No:08 2016Vol:10 No:07 2016Vol:10 No:06 2016Vol:10 No:05 2016Vol:10 No:04 2016Vol:10 No:03 2016Vol:10 No:02 2016Vol:10 No:01 2016
Vol:9 No:12 2015Vol:9 No:11 2015Vol:9 No:10 2015Vol:9 No:09 2015Vol:9 No:08 2015Vol:9 No:07 2015Vol:9 No:06 2015Vol:9 No:05 2015Vol:9 No:04 2015Vol:9 No:03 2015Vol:9 No:02 2015Vol:9 No:01 2015
Vol:8 No:12 2014Vol:8 No:11 2014Vol:8 No:10 2014Vol:8 No:09 2014Vol:8 No:08 2014Vol:8 No:07 2014Vol:8 No:06 2014Vol:8 No:05 2014Vol:8 No:04 2014Vol:8 No:03 2014Vol:8 No:02 2014Vol:8 No:01 2014
Vol:7 No:12 2013Vol:7 No:11 2013Vol:7 No:10 2013Vol:7 No:09 2013Vol:7 No:08 2013Vol:7 No:07 2013Vol:7 No:06 2013Vol:7 No:05 2013Vol:7 No:04 2013Vol:7 No:03 2013Vol:7 No:02 2013Vol:7 No:01 2013
Vol:6 No:12 2012Vol:6 No:11 2012Vol:6 No:10 2012Vol:6 No:09 2012Vol:6 No:08 2012Vol:6 No:07 2012Vol:6 No:06 2012Vol:6 No:05 2012Vol:6 No:04 2012Vol:6 No:03 2012Vol:6 No:02 2012Vol:6 No:01 2012
Vol:5 No:12 2011Vol:5 No:11 2011Vol:5 No:10 2011Vol:5 No:09 2011Vol:5 No:08 2011Vol:5 No:07 2011Vol:5 No:06 2011Vol:5 No:05 2011Vol:5 No:04 2011Vol:5 No:03 2011Vol:5 No:02 2011Vol:5 No:01 2011
Vol:4 No:12 2010Vol:4 No:11 2010Vol:4 No:10 2010Vol:4 No:09 2010Vol:4 No:08 2010Vol:4 No:07 2010Vol:4 No:06 2010Vol:4 No:05 2010Vol:4 No:04 2010Vol:4 No:03 2010Vol:4 No:02 2010Vol:4 No:01 2010
Vol:3 No:12 2009Vol:3 No:11 2009Vol:3 No:10 2009Vol:3 No:09 2009Vol:3 No:08 2009Vol:3 No:07 2009Vol:3 No:06 2009Vol:3 No:05 2009Vol:3 No:04 2009Vol:3 No:03 2009Vol:3 No:02 2009Vol:3 No:01 2009
Vol:2 No:12 2008Vol:2 No:11 2008Vol:2 No:10 2008Vol:2 No:09 2008Vol:2 No:08 2008Vol:2 No:07 2008Vol:2 No:06 2008Vol:2 No:05 2008Vol:2 No:04 2008Vol:2 No:03 2008Vol:2 No:02 2008Vol:2 No:01 2008
Vol:1 No:12 2007Vol:1 No:11 2007Vol:1 No:10 2007Vol:1 No:09 2007Vol:1 No:08 2007Vol:1 No:07 2007Vol:1 No:06 2007Vol:1 No:05 2007Vol:1 No:04 2007Vol:1 No:03 2007Vol:1 No:02 2007Vol:1 No:01 2007