Investments in the cryptocurrency market or the commodity exchange. Which is more efficient?
Cryptocurrencies have become an essential element of the global financial system, and in recent years also a frequent investment tool. The aim of the study is to check whether investments in cryptocurrencies are more effective than in commodities on commodity exchanges. The study was conducted based...
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| Format: | Article |
| Language: | English |
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Malopolska School of Economics in Tarnow, Poland
2021-09-01
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| Series: | Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie |
| Subjects: | |
| Online Access: | https://zn.mwse.edu.pl/index.php/zn/article/view/807 |
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| author | Sylwester Kozak Seweryn Gajdek |
| author_facet | Sylwester Kozak Seweryn Gajdek |
| author_sort | Sylwester Kozak |
| collection | DOAJ |
| description | Cryptocurrencies have become an essential element of the global financial system, and in recent years also a frequent investment tool. The aim of the study is to check whether investments in cryptocurrencies are more effective than in commodities on commodity exchanges. The study was conducted based on the daily quotations of the analyzed instruments in 2011–2020. The investment efficiency level was estimated using Sharpe’s and Sortino’s indicators. The research results showed that, on average, over the entire period under study, investments in cryptocurrencies were burdened with the highest risk, but at the same time achieved the highest daily rates of return. As a result, they were much more effective investment tools than gold, silver and WTI. The advantage of cryptocurrencies could be due to the long-term persistence of ultra-low interest rates and the reduced attractiveness of investment in debt securities. Bitcoin and etherum with the largest shares in cryptocurrency market capitalization have proven to be the most effective investment tools. |
| first_indexed | 2024-12-14T07:48:25Z |
| format | Article |
| id | doaj.art-5dda92b46eb943329e47a97c63d63f0d |
| institution | Directory Open Access Journal |
| issn | 1506-2635 2658-1817 |
| language | English |
| last_indexed | 2024-12-14T07:48:25Z |
| publishDate | 2021-09-01 |
| publisher | Malopolska School of Economics in Tarnow, Poland |
| record_format | Article |
| series | Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie |
| spelling | doaj.art-5dda92b46eb943329e47a97c63d63f0d2022-12-21T23:10:48ZengMalopolska School of Economics in Tarnow, PolandZeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie1506-26352658-18172021-09-01513617110.25944/znmwse.2021.03.6171807Investments in the cryptocurrency market or the commodity exchange. Which is more efficient?Sylwester Kozak0Seweryn Gajdek1Warsaw University of Life Sciences - SGGW, PolandWarsaw University of Life Sciences - SGGW, PolandCryptocurrencies have become an essential element of the global financial system, and in recent years also a frequent investment tool. The aim of the study is to check whether investments in cryptocurrencies are more effective than in commodities on commodity exchanges. The study was conducted based on the daily quotations of the analyzed instruments in 2011–2020. The investment efficiency level was estimated using Sharpe’s and Sortino’s indicators. The research results showed that, on average, over the entire period under study, investments in cryptocurrencies were burdened with the highest risk, but at the same time achieved the highest daily rates of return. As a result, they were much more effective investment tools than gold, silver and WTI. The advantage of cryptocurrencies could be due to the long-term persistence of ultra-low interest rates and the reduced attractiveness of investment in debt securities. Bitcoin and etherum with the largest shares in cryptocurrency market capitalization have proven to be the most effective investment tools.https://zn.mwse.edu.pl/index.php/zn/article/view/807cryptocurrenciesinvestmentscommodity exchangesinvestment efficiency |
| spellingShingle | Sylwester Kozak Seweryn Gajdek Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie cryptocurrencies investments commodity exchanges investment efficiency |
| title | Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? |
| title_full | Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? |
| title_fullStr | Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? |
| title_full_unstemmed | Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? |
| title_short | Investments in the cryptocurrency market or the commodity exchange. Which is more efficient? |
| title_sort | investments in the cryptocurrency market or the commodity exchange which is more efficient |
| topic | cryptocurrencies investments commodity exchanges investment efficiency |
| url | https://zn.mwse.edu.pl/index.php/zn/article/view/807 |
| work_keys_str_mv | AT sylwesterkozak investmentsinthecryptocurrencymarketorthecommodityexchangewhichismoreefficient AT seweryngajdek investmentsinthecryptocurrencymarketorthecommodityexchangewhichismoreefficient |