Investment decisions: Comparative analysis of the performance of cryptocurrencies Bitcoin, Gold and Stocks

Abstract

The purpose of the study is to compare the performance between bitcoin Cryptocurrency, S&P500 stocks and Gold which can be a consideration for investors in determining investment decisions. . This research is quantitative research using comparative methods. The population and sample used in this study are the monthly closing prices of the three investment instruments that are the subject of research with saturated sampling in the period 01 January 2019 – 31 December 2022 as many as 144 data. In this study, the type of data used is secondary data in the form of historical data of instruments. Then researchers used a non-parametric statistical test, the Kruskal-Wallis’s test. The results show that there is no significant difference between Treynor and Jensen’s returns from Bitcoin, Gold and S&P500. While the risk and Sharpe Ratio show that there is a significant difference. The best investment instrument in 2019-2022 is bitcoin because when viewed from the average return bitcoin is able to have the highest percentage compared to other instruments. Gold is an asset that is often considered a refuge in situations of economic uncertainty. Meanwhile, stocks in that period experienced a huge price decline, this was caused by the COVID-19 pandemic.