Should your fund invest in Bitcoin?

📖 Background

You work as an analyst at an investment fund in New York. Your CFO wants to explore if it is a good idea to invest some of the fund’s assets in Bitcoin. You have to prepare a report on this asset and how it compares to the stock market in general.

💾 The data

Bitcoin daily data in US dollars

  • “date” - date from September 17, 2014 to November 17, 2021
  • “open” - the price at the beginning of the trading day
  • “high” - the highest price reached that day
  • “low” - the lowest price reached that day
  • “close” - the price at the closing of the trading day
  • “volume” - how many Bitcoin were traded that day
## Rows: 2,615
## Columns: 6
## $ date   <date> 2014-09-17, 2014-09-18, 2014-09-19, 2014-09-20, 2014-09-21, 20~
## $ open   <dbl> 465.864, 456.860, 424.103, 394.673, 408.085, 399.100, 402.092, ~
## $ high   <dbl> 468.174, 456.860, 427.835, 423.296, 412.426, 406.916, 441.557, ~
## $ low    <dbl> 452.422, 413.104, 384.532, 389.883, 393.181, 397.130, 396.197, ~
## $ close  <dbl> 457.334, 424.440, 394.796, 408.904, 398.821, 402.152, 435.791, ~
## $ volume <dbl> 21056800, 34483200, 37919700, 36863600, 26580100, 24127600, 450~

S&P 500 daily data

  • “date” - date from September 17, 2014 to November 17, 2021
  • “open” - the index level at the beginning of the trading day
  • “high” - the highest level reached that day
  • “low” - the lowest level reached that day
  • “close” - the level at the closing of the trading day
  • “volume” - how many shares in the companies that make up the index were traded that day
## Rows: 1,805
## Columns: 6
## $ date   <date> 2014-09-17, 2014-09-18, 2014-09-19, 2014-09-22, 2014-09-23, 20~
## $ open   <dbl> 1999.30, 2003.07, 2012.74, 2009.08, 1992.78, 1983.34, 1997.32, ~
## $ high   <dbl> 2010.74, 2012.34, 2019.26, 2009.08, 1995.41, 1999.79, 1997.32, ~
## $ low    <dbl> 1993.29, 2003.07, 2006.59, 1991.01, 1982.77, 1978.63, 1965.99, ~
## $ close  <dbl> 2001.57, 2011.36, 2010.40, 1994.29, 1982.77, 1998.30, 1965.99, ~
## $ volume <dbl> 3209420000, 3235340000, 4880220000, 3349670000, 3279350000, 331~

Inflation and gold as monthly data

  • “date” - date from September, 2014 to November, 2021
  • “gold_usd” - price in usd of gold for that month
  • “cpi_us” - the inflation index for the US for that month (cpi = consumer price index)

CPI data from the U.S. Bureau of Labor Statistics (https://www.bls.gov/cpi/). Publicly available information.

## Rows: 87
## Columns: 3
## $ date     <date> 2014-09-01, 2014-10-01, 2014-11-01, 2014-12-01, 2015-01-01, ~
## $ gold_usd <dbl> 1241.330, 1223.565, 1176.413, 1200.440, 1249.333, 1231.100, 1~
## $ cpi_us   <dbl> 237.852, 238.031, 237.433, 236.151, 234.812, 233.707, 234.722~

Overall growth per week & total percent increase since September 2014

Everything goes up, makes sense to put your life savings into Bitcoin ASAP.

Go big or go home.

Bitcoin runs the world.

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