Bitcoin Investment – Evaluating Bitcoin and Traditional Assets as Investment Options for Indian Investors

Adnan Khan

Diplomová práce

Abstract:

This study examines the performance of Bitcoin (BTC) in comparison with gold, the NIFTY 50 index, and the USD/INR exchange rate within the Indian market by analyzing their return behavior, volatility, and long-term adjustments. Using monthly data transformed into logarithmic returns, the study applies statistical tests, risk measures, and time-series techniques to assess how these assets behave in both short- and long-term horizons. The findings indicate that BTC exhibits substantially higher price volatility than traditional assets while also delivering higher average returns, making it an attractive yet challenging option for investors who must manage sudden drawdowns. Stationarity tests confirm that return series behave predictably despite fluctuations in price levels, enabling reliable modeling. Regression results reveal mild positive effects from gold and equities and a significant negative effect from the exchange rate, suggesting that market sentiment and currency conditions shape BTC behavior in INR terms. The Engle–Granger test indicates that BTC adjusts to other assets in the long run, implying that despite sharp short-term movements, its trajectory does not fully diverge over time. The study concludes that BTC occupies a unique position in the Indian financial landscape: it has the potential to enhance returns, is susceptible to sudden stress, and responds to broader market signals, making it suitable only as part of a structured and well-balanced portfolio.

Keywords

Bitcoin, blockchain investment, Indian financial market, NIFTY 50, return analysis, risk analysis, Sharpe ratio, portfolio diversification, time-series analysis

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 22. 12. 2025

Obhajoba závěrečné práce

• Obhajoba proběhla 5. 2. 2026
• Vedoucí: prof. Ing. Petr Procházka, MSc Ph.D.
• Oponent: Hana Hönigová, externi

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
Economics and Management