Crypto Currency: What Do We Know About Investment Performance and Risk?

  • Sarah SwammyEmail author
  • Richard Thompson
  • Marvin Loh


Crypto currency originated in Nakamoto (Bitcoin: a peer-to-peer electronic cash system., which described a digital payment system that did not require a third party, but instead a network of participants. The underlying technology, known as blockchain, has allowed for the growth of crypto currency. Bitcoin and more recently other crypto currencies serve as tokens used in blockchain systems.

Although bitcoin has been traded 24 hours per day, 7 days per week, since 2010, rival crypto currencies started to appear in 2014. Since 2015, there have been competing coins, including ethereum, which operates on the ethereum network. Ethereum has a current market capitalization of $47.8 billion as of July 24, 2018, which is exceeded only by bitcoin’s $140.1 billion market capitalization on July 24, 2018 (These statistics were obtained from on July 24, 2018, at 10:59 AM EDT).


Ethereum Blockchain technology Digital payment system Financial performance Financial markets 


  1. Alvarez-Ramirez, J., E. Rodriguez and C. Ibara-Valdez. 2018. “Long-Range Correlations and Asymmetry in the Bitcoin Market,” Physica A 492: 948–966.CrossRefGoogle Scholar
  2. Bouri, Elie, Peter Molnr, Georges Azzi, David Roubaud and Lars Ivar Hagfors. 2017. “On the Hedge and Safe Haven Properties of Bitcoin: Is It Really More than a Diversifier?” Finance Research Letters, 20:192–198.CrossRefGoogle Scholar
  3. Cheah, Eng-Tuck and John Fry. 2016. “Speculative Bubbles in Bitcoin markets? An Empirical Investigation into the Fundamental Value of Bitcoin,” Economics Letters 130: 32–36.CrossRefGoogle Scholar
  4. Corbett, Shaen, Andrew Meegan, Charles Larkin, Brian Lucey and Larisa Yarovaya. 2018. “Exploring the Dynamic Relationships between Cryptocurrencies and other Financial Assets,” Economics Letters, forthcoming.Google Scholar
  5. Demir, Ender, Giray Gozgor, Chi K.M. Lao and Samuel A. Vigne. 2018. “Does Economic Policy Uncertainty Predict the Bitcoin returns? An Empirical Investigation,” Finance Research Letters, forthcoming.Google Scholar
  6. Dyhrberg, Anne H. 2016. “Bitcoin, Gold and the Dollar – a GARCH Volatility Analysis,” Finance Research Letters 16: 85–92.CrossRefGoogle Scholar
  7. Gandal, Neil, J.T. Hamrick, Tyler Moore and Tali Oberman. 2017. In 16th Workshop on the Economics of Information Security (WEIS).Google Scholar
  8. Griffin, John and Amin Shams. 2018. “Is Bitcoin Really Untethered?”
  9. Harvey, Campbell. 2016. “Cryptofinance,”
  10. Nadarajah, Saralees and Jeffrey, Chu. 2017. “On the Inefficiency of Bitcoin,” Economic Letters 150: 6–9.CrossRefGoogle Scholar
  11. Nakamoto, Satoshi. 2008. “Bitcoin: A Peer-to-Peer Electronic Cash System,”
  12. Rooney, Kate. 2018. “Bitwise joins the race to launch SEC-regulated cryptocurrency ETF”.
  13. Urquhart, Andrew. 2016. “The Inefficiency of Bitcoin,” Economics Letters 148:80–82.CrossRefGoogle Scholar
  14. Vigna, Paul. 2014. “5 Things About Mt. Gox’s Crisis”. The Wall Street Journal. April 25.Google Scholar
  15. Weiczner, Jennifer 2017. “What the SEC Bitcoin ETF Decision Means for the Future of Cryptocurrency”. Fortune March 10.
  16. Weiczner, Jennifer 2018. “Coinbase Eyes Bitcoin ETF With New Cryptocurrency Index Fund”. Fortune March 6.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.State Street Global Market, LLCNew YorkUSA
  2. 2.Digital Air TechnologiesNew YorkUSA
  3. 3.Bank of New York MellonNew YorkUSA

Personalised recommendations