Correlative Analysis of Cryptocurrencies and Stocks from Asset and Investment Perspective

Abstract

Cryptocurrencies are relatively young phenomenon in the history of money being used as a basis for exchange of value. This phenomenon was in concept for many years, however, got mainstream traction when Bitcoin was introduced by pseudonymous developer Satoshi Nakamoto in 2008. Cryptocurrency is now perceived by mainstream investment community as a financial asset and thus forming an investment opportunity. This paper explores to validate this perspective of cryptocurrencies being young assets by correlating them against another matured type of security known as stocks. With this exploration, it offers a simplistic-yet-reliable view on the investment opportunity arising from cryptocurrencies against that of a well-established benchmark.