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Traditional Stock Market or Cryptocurrency?– Inspecting for a Better Risk-Minimising Investment Port

The financial market has been characterised by high volatility throughout its history, making it an area of speculative investment for investors. The two worries that this article focuses on, out of all the other concerns that investors have about risk minimisation, are (a) volatility in stock prices and (b) financial fraud crimes. When it comes to investing in cryptocurrency, the same considerations apply. Thus, based on the parameters (a) and (b) stated above, this paper attempts to draw a competitive analysis between Cryptocurrencies and Traditional Stocks, using Bitcoins and the S&P 500 Index Portfolio as representatives of cryptocurrencies and traditional stocks in the US Stock Market, respectively. In terms of the aforementioned factors, the result achieved using tools such as Value at Risk analysis, forensic accounting index, and an econometric model is that the S&P 500 Index Portfolio is a less dangerous possibility for investment in the US Stock Market than Bitcoins.




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