A Systematic Analysis on Cryptocurrencies as a Financial Asset

Abstract

Cryptocurrencies are considered digital asset that is saved on a computerized database in a public ledger format using strong cryptography methods or blockchain to secure the transaction record. In recent times it has attracted a large number of holders. Cryptocurrencies are based on entirely new technology, whose prospects are still undiscovered and unknown, which in turn attracted considerable academic studies directed towards creating theoretical models of cryptocurrencies and their possible prospects. In this study, we have considered the topmost cryptocurrencies namely Bitcoin, Ethereum, Ripple, and Litecoin as they have a major part in the cryptocurrency market capitalization which is around 83.4% of the total market. The objective of the study is to understand whether there is a significant association between 4 cryptocurrency prices namely Bitcoin, Ethereum, Litecoin, Ripple, and understand whether there is a significant relationship between the Bitcoin cryptocurrency pricing concerning Ethereum, Litecoin Ripple cryptocurrency prices. Secondary and primary data from different websites and questionnaires have been used for the study. It has emerged from the study that there is a high correlation between these cryptocurrencies' prices. It has also been found that Bitcoin prices increases, if Ethereum and Litecoin prices increases. Bitcoin prices decrease, only if Ripple prices increase.