In Which Distributed Ledger Do We Trust? A Comparative Analysis Of Cryptocurrencies
نویسندگان
چکیده
This study provides a comparative financial and statistical analysis between the largest and most traded cryptocurrencies. In particular, the exchange rates of Bitcoin, Litecoin, Ripple and Ethereum were collected from August 2010 until May 2017. The raw annualized volatility of cryptocurrencies is compared as well as to fiat currencies and major exchange rates. The results show that Bitcoin is the least volatile cryptocurrency with low correlations with the altcoins, providing possible diversification benefits to cryptocurrency investing. In addition, our results indicate that Bitcoin is the only cryptocurrency that has causality effects on the other cryptocurrencies.
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