New technologies and the role of cryptocurrency at the level on an investment portfolio

New technologies have a significant role in modern financial markets. The application of new technologies, application and software solutions has enabled financial institutions and individual and institutional investors to use mathematical-statistical and econometric models, which are based on analy...

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Main Authors: Živanović Vladimir, Vitomir Jelena
Format: Article
Language:English
Published: University Dzon Nezbit 2022-01-01
Series:Megatrend Revija
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2022/1820-31592201001Q.pdf
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author Živanović Vladimir
Vitomir Jelena
author_facet Živanović Vladimir
Vitomir Jelena
author_sort Živanović Vladimir
collection DOAJ
description New technologies have a significant role in modern financial markets. The application of new technologies, application and software solutions has enabled financial institutions and individual and institutional investors to use mathematical-statistical and econometric models, which are based on analysis and evaluation of investment portfolios, financial risk assessment and extrapolation, as well as predictability related to cyclical economic trends, which are directly reflected in the investment portfolio. Due to the impact of the financial crisis, and especially due to global negative economic trends caused by the COVID-19 pandemic, alternative forms of financial assets that are directly created by the application of new technologies are becoming increasingly important in the international financial market. These alternative forms of financial assets are presented as cryptocurrencies. Bitcoin is the first cryptocurrency in the global financial market, and Ethereum is the second cryptocurrency in terms of market turnover. In this regard, arises the question: "Do these two leading cryptocurrencies have a significant impact on the modern financial market, as well as on the decision of individual and institutional investors regarding a different structure of the investment portfolio?" Restructuring the investment portfolio by including cryptocurrencies, aims to achieve portfolio diversification in order to better manage market and financial risks. This paper will analyze the impact of cryptocurrencies, their volatility, turnover volume and the possibility of using them as alternative financial assets of an optimal investment portfolio.
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spelling doaj.art-d0cb3ff7e5034aee81305397cc82e7082022-12-22T02:31:58ZengUniversity Dzon NezbitMegatrend Revija1820-31592560-33292022-01-0119111610.5937/MegRev2201001Z1820-31592201001QNew technologies and the role of cryptocurrency at the level on an investment portfolioŽivanović Vladimir0Vitomir Jelena1https://orcid.org/0000-0001-6995-3297Megatrend Univerzitet Beograd, Fakultet za poslovne studije, SerbiaMegatrend Univerzitet Beograd, Fakultet za poslovne studije, SerbiaNew technologies have a significant role in modern financial markets. The application of new technologies, application and software solutions has enabled financial institutions and individual and institutional investors to use mathematical-statistical and econometric models, which are based on analysis and evaluation of investment portfolios, financial risk assessment and extrapolation, as well as predictability related to cyclical economic trends, which are directly reflected in the investment portfolio. Due to the impact of the financial crisis, and especially due to global negative economic trends caused by the COVID-19 pandemic, alternative forms of financial assets that are directly created by the application of new technologies are becoming increasingly important in the international financial market. These alternative forms of financial assets are presented as cryptocurrencies. Bitcoin is the first cryptocurrency in the global financial market, and Ethereum is the second cryptocurrency in terms of market turnover. In this regard, arises the question: "Do these two leading cryptocurrencies have a significant impact on the modern financial market, as well as on the decision of individual and institutional investors regarding a different structure of the investment portfolio?" Restructuring the investment portfolio by including cryptocurrencies, aims to achieve portfolio diversification in order to better manage market and financial risks. This paper will analyze the impact of cryptocurrencies, their volatility, turnover volume and the possibility of using them as alternative financial assets of an optimal investment portfolio.https://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2022/1820-31592201001Q.pdfnew technologiesinternational financial marketscryptocurrenciesinvestment portfolio
spellingShingle Živanović Vladimir
Vitomir Jelena
New technologies and the role of cryptocurrency at the level on an investment portfolio
Megatrend Revija
new technologies
international financial markets
cryptocurrencies
investment portfolio
title New technologies and the role of cryptocurrency at the level on an investment portfolio
title_full New technologies and the role of cryptocurrency at the level on an investment portfolio
title_fullStr New technologies and the role of cryptocurrency at the level on an investment portfolio
title_full_unstemmed New technologies and the role of cryptocurrency at the level on an investment portfolio
title_short New technologies and the role of cryptocurrency at the level on an investment portfolio
title_sort new technologies and the role of cryptocurrency at the level on an investment portfolio
topic new technologies
international financial markets
cryptocurrencies
investment portfolio
url https://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2022/1820-31592201001Q.pdf
work_keys_str_mv AT zivanovicvladimir newtechnologiesandtheroleofcryptocurrencyatthelevelonaninvestmentportfolio
AT vitomirjelena newtechnologiesandtheroleofcryptocurrencyatthelevelonaninvestmentportfolio