Chapter 1 Introduction

Cryptocurrencies such as Bitcoin, Ethereum, and even Dogecoin have evolved significantly from mere curiosity to a punchline to viable investment, making them nearly impossible to ignore. These cryptocurrencies are powered by the underlying technology of blockchains, which register every transaction and cannot be altered. Different blockchains support different kinds of cryptocurrencies: Bitcoin, for instance, lives on the bitcoin blockchain; ether exists on the ethereum blockchain.

Many leading investors hate cryptocurrency; Warren Buffett has called bitcoin “rat poison squared.” Others, including hedge-fund manager Paul Tudor Jones, have climbed aboard.

It’s challenging for a casual observer or a “normie” to disentangle the hype from any true potential. Yet, it’s also difficult to shake that feeling: Are digital tokens worthy of a spot in my portfolio? Is it even possible for them to be a viable asset class?

We wanted to find out - what is driving this massive momentum in cryptocurrencies now and how does it compare to the global markets?

The purpose of this project is to conduct an exploratory analysis of cryptocurrency price trends, trading volume, and the influence of social media and cryptocurrency-related conversations on the market capitalization of these prices. Additionally, we wish to compare cryptocurrency as an asset class to the global stock, bond, and gold markets.