Cardano as an Alternative to Cryptocurrency Investment

Abstract

Cardano becomes the first cryptocurrency designed and built on scientific philosophy and academic research reviewed by peers. Market participants can assess the potential of Cardano to use it for cryptocurrency investment alternative which can be done through comparing Cardano with traditional financial asset particularly stock and gold. Purpose of the research is to know the difference between Cardano performance to stock and gold. This research used quantitative methods with a comparative and descriptive approach. Performance of each asset measured by Sharpe, Treynor and Jensen indexes from October 2017 to April 2019. Result of the research is Cardano shows good performance in comparison to other assets. It concluded that Cardano shows a significant difference in performance with LQ45 index using Sharpe, Treynor and Jensen indices. While Cardano in comparison to ANTAM gold shows that there is a significant difference in performance using the Sharpe index but no significant difference using Treynor and Jensen indeces.

Keywords: cryptocurrency; Cardano; portfolio performance; Sharpe index; Treynor index; Jensen Index

DOI: 10.7176/RJFA/11-16-10

Publication date:August 31^st 2020