CoinMarketCap

Cryptocurrencies such as Bitcoin are digital currencies not backed by real assets or tangible securities. They are traded between consenting parties with no broker and tracked on digital ledgers.

Just like precious stones, Bitcoin is a store of value and, more precisely, an investment asset . According to industry definition, an investment asset include both tangible and intangible instruments which investors buy and sell for the purposes of generating additional income.

These assets include US equities, precious metals, commodities, energy, bonds and currencies . For the analysis of Bitcoin users, we use Bitcoin transaction data from Kondor et al. (2014) as available on their website. 3 The data are actual transactions originating from the public Bitcoin ledger.

You can easily trade bitcoin for cash or assets like gold instantly with incredibly low fees. The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit . Digital currencies may also be a long-term investment due to their high market demand.