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ORIGINAL ARTICLE
RISK OF INVESTMENT IN CRYPTOCURRENCIES
1
Instytut Ekonomii i Finansów, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie, Polska
2
Wydział Ekonomiczny, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie, Polska
Submission date: 2021-06-24
Final revision date: 2021-09-08
Acceptance date: 2021-09-09
Online publication date: 2021-09-30
Publication date: 2021-09-30
Corresponding author
Sylwester Kozak
Instytut Ekonomii i Finansów, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie, Polska
Instytut Ekonomii i Finansów, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie, Polska
Economic and Regional Studies 2021;14(3):294–304
KEYWORDS
TOPICS
ABSTRACT
Subject and purpose of work: Cryptocurrencies are a phenomenon that has been strengthening
its place in the world of finance for over ten years and which is becoming a frequent investment tool.
The aim of this study is to compare the level of risk measures of investments in the cryptocurrency
market with investments in global capital markets in 2011-2020. Materials and methods: The study used the quotations of the analysed instruments. The level
of risk was estimated using standard deviation and semi-standard deviation of daily logarithmic
rates of return. Results: Investment in cryptocurrencies is more risky than in shares of the largest international
companies. The level of risk decreases with the duration of the cryptocurrency presence on the market. Conclusions: Achieving extraordinary rates of return generates an increased demand and
volatility of cryptocurrencies’ quotations. The level of risk of investing in cryptocurrencies is much higher than in the indexes of global capital exchanges.
PEER REVIEW INFORMATION
Article has been screened for originality
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