Bitcoin: An Investment Management Tool-Comparison between risk and average returns of different financial assets with BTC

Abstract

The paper provides a detailed understanding about what exactly Bitcoin (BTC) is. It also answers the question about where and how to use bitcoin as a consumer. The paper elaborates about how bitcoin can be earned and generated along with an ease to understand explanation about its technology. The objective of the paper is to identify whether BTC is still a feasible asset to make an investment in as compared with other existing securities and assets for both short term and long-term investors in the global market. The purpose is to figure out if bitcoin has potential in 2020 and coming years and will it yield high returns even after it has seen a price drop in 2019. Bitcoin became popular when its price peaked to almost $20000 in 2017. Global investors not only look at BTC in short term speculative prospective but also as a long-term investment asset hence it is called as the Digital Gold. BTC is also considered to be highly volatile in nature which is why studying the risk factor involved in investing in it becomes very important. Both mean variance approach and correlation approaches are used to evaluate the risk involved in BTC as an asset and comparison is made with other popular global assets to see if investing in Bitcoin is an ideal option or not.