Analysis of Bitcoin and Other Shares

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Business Statistics
Assessment 2: Individual/Group Assessment
With Dr Pratima Srivastava
ECON 1030
Created by
- Suleman Gjoshi
S3668296 - Michael Ross Zappia
- Mrityunjay Kumar

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................3
Part A.........................................................................................................................................3
Conclusion................................................................................................................................11
Reference..................................................................................................................................12
Appendices...............................................................................................................................13

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Executive Summary
Bitcoin is a payment network which is a very well-known as a cryptocurrency that uses the
blockchain technology. It is considered a secure, global and digital currency that could
represent the future of finance; however, some people are not so optimistic about it.
Statistical analysis is needed to judge whether it is recommendable or not to invest in Bitcoin.
Data on the closing price and the return of Bitcoin on a weekly basis can be used to get the
best results from the analysis. The trend and the statistics can suggest the better option
between investing and not investing on Bitcoins.

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Introduction
Cryptocurrency is an application of blockchain technology. Cryptocurrency uses the
encryption techniques to secure and regulate the financial transaction, generation of
additional units and confirm the relocation of assets. A very well-known example of
cryptocurrency is Bitcoin. Bitcoin is a new kind of payment network and it uses the
technology to control without banks, manage transactions and issue the Bitcoins collectively
using the network (Easley, O'Hara and Basu 2019). The reasons for being optimistic about
the future of Bitcoin and other cryptocurrencies are market stability, Scalability of
mainstream use, adoption, favourable regulatory decisions, successful platform launches and
strong economies.
Part A
The future of Bitcoin isn’t a sure thing and some worry that the supply of Bitcoin is fixed in
the long-run. Now, even if it follows the constant Friedman growth rule it would not be
possible to solve the problem.
Figure 1: Scatterplot: Weekly closing price of Bitcoin over the year