Analysis of Risk Diversification --Based on Bitcoin

DOI

10.2991/assehr.k.211209.187How to use a DOI?

Keywords

Bitcoin; cryptocurrency; MPT; risk

Abstract

Bitcoin is an essential component in the cryptocurrency system and plays a vital role in the economic system. This paper uses analytical methods to conduct in-depth research on Bitcoin. I will explain their opinions about its ability to invest and risk diversification, and then we try to verify some conclusions of the MPT model. First, my research shows that based on the modern portfolio theory, the risks of bitcoin could be diversified with some trading assets on the actual market. Second, two essential risks of Bitcoin are the legality and the cyber risk. On the one hand, the research in this article provides a theoretical speech on Bitcoin. On the other hand, it provides theoretical suggestions for the application and development of Bitcoin.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Junchao Xia
PY  - 2021
DA  - 2021/12/15
TI  - Analysis of Risk Diversification --Based on Bitcoin
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1151
EP  - 1157
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.187
DO  - 10.2991/assehr.k.211209.187
ID  - Xia2021
ER  -