Bitcoin is an Investment or Speculation
Bitcoin is defined as digital money within a decentralized peer-to-peer payment network. It is considered as a hybrid between precious metals with intrinsic value and fiat currency backed by a monetary authority. It is a cryptographic currency which has gone through lot of spectacular developments leading to lot of academic attention. This paper investigates to answer the question whether bitcoin is an investment asset which offers diversified benefits to the investors or it can also be stated as whether bitcoin possess hedge or safe haven properties. The study of recent literature shows that bitcoins are mainly used as an investment rather than as an alternative currency. It is found to be useful for risk management as portfolio optimization. Bitcoin is considered one of the reasons for 2017 to be the terrific year for the equity markets after 2008-2009. The demand for bitcoins increased drastically even if when investor cannot spend bitcoins at offline store or online. Overstock.com was the first big online retailer which starts accepting bitcoins in January 2014.
Blockchain (BC), is the technology behind the Bitcoin crypto-currency system, which is considered to be both alluring and critical for ensuring enhanced security and privacy for diverse applications in many other domains - including in the Internet of Things (IoT) eco-system. Intensive research is currently being conducted in both academia and industry applying the Blockchain technology in multifarious applications.
Keywords - Bitcoin; Block-chain; Cryptocurrecncy; Investment; Speculation.