The economics contribution of cryptocurrencies : a portfolio analysis in cameroon

Abstract EN

This paper investigates the economic contribution of cryptocurrencies, notably bitcoins, in ameliorating the portfolio of a Cameroonian investor in international assets.

The methods used are simple correlation, the dynamic conditional correlation of the MGARCH family as well as comparative analysis of portfolios based on the Markowitz modern portfolio theory.

The results show that cryptomonaries/bitcoins remain good diversification tools, as their inclusion tends to improve the efficiency of a portfolio's border due to their very low correlation with other financial assets.