Abstract:
At first, an American programmer bought two pizzas with 10,000 bitcoins in 2010. By the beginning of 2018, the price of bitcoins soared to more than 10,000 dollars. But now, at the end of this year, the price of bitcoin drops dramatically to about 4,500 dollars, which sets the lowest record in 2018. The price of cryptocurrency represented by bitcoin fluctuates sharply, which is in line with the expectations of some investors. However, more people are full of doubts and puzzles. In this report, we firstly review the development of cryptocurrency, including cryptocurrency market performance, cryptocurrency exchange volume and bitcoin futures. Secondly, taking bitcoin as an example, this paper analyzes the potential risks of investing in cryptocurrency, and tests the risk exposure of bitcoin returns to stock, currencies and precious metals. And then we study the bitcoin time-series momentum. Finally, this paper summarizes the academic on cryptocurrency in 2018.
