Contemporary Economy (Sep 2015)

ANALYSIS OF THE INVESTMENT RISK IN CRYPTOCURRENCY BITCOIN

  • Kinga Kądziołka

Journal volume & issue
Vol. 6, no. 3
pp. 1 – 8

Abstract

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The aim of the article was to evaluate the risks of investing in Bitcoin cryptocurrency. Particular attention was paid to the risk of investment on the Polish exchanges: Bitcurex, BitBay, BitMarket.pl and LocalBitcoins. To evaluate the risk there was used VaR measure. There were compared the risk of investing in Bitcoin cryptocurrency and the risk of investing in the selected "traditional" currencies. There was also paid attention to the effect of day of the week on the Bitcoin’s exchanges. The investment in cryptocurrency was characterized by higher risk than investing in “traditional” currencies. The Polish Bitcoin exchange LocalBitcoins was characterized by the highest risk and highest average daily rate of return.

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