Description:

I wrote this paper on bitcoin for a finance class. I can't guarantee accuracy or even correctness, and my citations aren't formatted correctly. I did get a (very) good grade though. This paper seeks to estimate the beta of bitcoin against five different portfolios. Two of the portfolios are to see if any insight can be made into bitcoin pricing through a Capital Asset Pricing Model analysis. Three of the portfolios are to see if any empirical data can be used to develop insight into the classification debate surrounding bitcoin. The paper begins with a discussion of bitcoin, bitcoin price history, and the bitcoin classification debate, then discusses beta, how beta is calculated, and beta adjustments for asynchronous data, followed by a discussion on purpose and methodology, then the results in detail, and finally a summary of the results and their implications.