Cryptocurrencies are currencies or digital assets which do not depend on governments or central banks (Kurihara and Fukushima, 2017). The cryptocurrency market is a market which is not regulated and operates 24 hours, 7 days a week. Thus, this market is different from stock markets.
The cryptocurrency market has currently over 1300 different coins and tokens (Coinmarketcap, 2017). Coins can be considered a currency while tokens are more similar to stocks or assets. Tokens run on a platform provided by a blockchain. Nevertheless, all coins and tokens are considered cryptocurrencies, and many investors do not differentiate between both but view them as equal investments.
Two years ago, many of the current cryptocurrencies did not yet exist. The most famous cryptocurrency is Bitcoin which distributed its first coin in 2009. Many other cryptocurrencies however only emerged during Initial Coin Offerings (ICO) this or last year.
The cryptocurrency market is evolving very fast and becomes more and more mainstream. Consequently, it is interesting to look closer at this market since there is a research gap for this relatively young market currently. Although the market is this young, it is already worth over 400billion US Dollars (Coinmarketcap, 2017).
This report was written during my MSc Data Science course at the City University.