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Contribution Details

Type Bachelor's Thesis
Scope Discipline-based scholarship
Title Cryptocurrency as Investment Opportunity
Organization Unit
Authors
  • Dominik Zuber
Supervisors
  • Thomas Puschmann
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 58
Date 2020
Abstract Text The accelerating global dissemination and adoption of cryptocurrency and blockchain technology is undisputed. Retail as well as institutional investors show an increasing interest in cryptocurrency and do not want to miss the opportunity of what could be the next big thing. However, the majority of them is still unaware of the fundamentals and basics about cryptocurrency and especially does not understand the technology behind it. This comes certainly from the fact that there is only little literature about this new and complicated asset class, and it is mostly only focused on specific fields and does not provide a comprehensive overview, which could help to understand the contexts. For this reason, this thesis gives an in-depth insight into the space of cryptocurrencies and decentralized blockchain technology in order to educate investors about it. Besides the analysis of the characteristics and the demonstration of the potential cryptocurrencies have, limitations and risks are pointed out. For one thing, the revolutionary decentralized blockchain technology is able to improve weaknesses in the current financial system as well as in several other sectors. On the other hand, regulatory challenges, the involvement in criminal activities and environmental concerns scare investors away. Nevertheless, an investment in Bitcoin, Ethereum or other cryptocurrencies helps to improve the diversification of a portfolio consisting of conventional assets and should therefore be considered. Keywords: Cryptocurrency, Bitcoin, Blockchain, Decentralization, ICO.
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