The Value of Bitcoin in Enhancing the Efficiency of an Investor's Portfolio

• During recent years, bitcoin has emerged as the best-known and most widely used digital currency. With limited supply and a lack of central authority for its creation, its proponents laud its usefulness as an alternative currency that is free from the inflationary influence of stimulative monetary policy. • This study examines bitcoin’s role as a currency and its usefulness as an investment asset. • Results suggest that while bitcoin may be less useful as a currency, it can play an important role in enhancing the efficiency of an investor’s portfolio. Executive Summary Chen (Ken) Y. Wu, Ph.D., is an assistant professor