Cryptocurrency

Abstract

Cryptocurrencies started gaining popularity in 2017 because of the exponential returns despite their introduction in the year 2009. Cryptocurrency is now also seen as an investment opportunity by many especially after various cryptocurrencies have given unimaginable returns. Favourite investment avenues for investors were mutual funds, stock market, bonds, fixed deposits, etc., but cryptocurrencies have made their presence felt in recent times as an investment option and have seen a lot of inflow. Various start-ups are facilitating the investment in cryptocurrencies, making it feasible and reachable for every household to invest in in the hope of high returns. This chapter tries to analyse the returns that various cryptocurrencies have given since inception and compare the same with global benchmarks like NASDAQ, Nikkei, Sensex, etc. It is observed that despite very high volatility, cryptocurrencies were able to achieve very high returns as compared to stocks. The study also found a high positive correlation between the returns given by global indices and cryptocurrencies.