Is Cryptocurrency Risky as An Investment Instrument? Analysis of Return and Risk with A Comparison of Sharia Stocks

Hanif Ahmadi

Abstract


Cryptocurrency instruments show an increase in the number of investors in Indonesia, the increase in cryptocurrency investors is even bigger than the number of stock investors in the Indonesian capital market, even though stock investors also increase. The increase in stock and cryptocurrency investors is an indication that the investment climate in Indonesia is starting to improve, this must be accompanied by increased financial literacy regarding the returns and risks of an investment instrument, this research is important considering that understanding the returns and risks of an investment instrument is crucial in the decision making. The test in this study uses a descriptive statistics and independent sample t-test, if the sample does not meet the requirements of the parametric statistical test, it will use the nonparametric statistical test Mann Whitney Test, which aims to determine whether there is a difference in return and risk of cryptocurrencies and sharia stock prices for the period January 2015 to October 2021. This study finds that there are significant differences in the returns and risk of cryptocurrencies and Sharia Stocks. Based on descriptive statistics, the standard deviation of cryptocurrency returns is greater than the standard deviation of Sharia stocks, indicating that cryptocurrency risks are higher than Sharia Stocks.

Keywords


investment; cryptocurrencies; stock markets; return and risk

Full Text:

PDF

References


Aves, A. (2018). How to Get Started in Cryptocurrency. Quoine Liquid.

Bakry, W., Rashid, A., Al-Mohamad, S., & El-Kanj, N. (2021). Bitcoin and Portfolio Diversification: A Portfolio Optimization Approach. Journal of Risk and Financial Management, 14(7), 282. https://doi.org/10.3390/jrfm14070282

Becket, M. (2021). How the Stock Market Works A beginner’s guide to investment (Seventh Ed). Kogan Page Limited.

Corbet, S., Urquhart, A., & Eds, L. Y. (2020). Cryptocurrency and Blockchain Technology. In Cryptocurrency and Blockchain Technology. Walter de Gruyter GmbH. https://doi.org/10.1515/9783110660807

Cudd, M., Ritterbush, K., Eduardo, M., Smith, C., Cudd, M.,

Ritterbush, K., Eduardo, M., & Smith, C. (2018). Cryptocurrency Returns. Blockchain and Cryptocurrencies. https://doi.org/10.5772/INTECHOPEN.80397

Danial, K. (2019). Cryptocurrency Investing for Dummies. John Wiley & Sons, Inc. https://www.dummies.com/personal-finance/investing/cryptocurrency-investing-for-dummies-cheat-sheet/

Dasman, S. (2021). Analysis of Return and Risk of Cryptocurrency Bitcoin Asset as Investment Instrument. Accounting and Finance Innovations. https://doi.org/10.5772/INTECHOPEN.99910

Dirgantara, H. (2021). Mendag: Transaksi uang kripto di Indonesia tembus Rp 370 triliun. https://investasi.kontan.co.id/news/mendag-tranasaksi-uang-kripto-di-indonesia-tembus-rp-370-triliun

Ghozali, I. (2011). Aplikasi Analisis Multivariate dengan Program SPSS. Badan Penerbit Universitas Diponegoro.

Huda, N., & Hambali, R. (2020). Risiko dan Tingkat Keuntungan Investasi Cryptocurrency. Jurnal Manajemen Dan Bisnis (Performa), 17(1), 72–84. https://doi.org/10.29313/performa.v17i1.7236

Ilham. (2022). Pandangan Majelis Tarjih Terkait Mata Uang Kripto - Muhammadiyah. https://muhammadiyah.or.id/pandangan-majelis-tarjih-terkait-mata-uang-kripto/

Inci, A. C., & Lagasse, R. (2019). Cryptocurrencies: applications and investment opportunities. Journal of Capital Markets Studies, 3(2), 98–112. https://doi.org/10.1108/jcms-05-2019-0032

Jogiyanto. (2014). Teori Portofolio dan Analisis Investasi. BPFE-UGM.

Jones, C. P. (2016). Investments Analysis and Management. Wiley.

Jufridar, J., Nur Ilham, R., & Sinurat, M. (2021). Analisis Potensi dan Risiko Investasi pada Instrumen Keuangan dan Aset Digital Cryptocurrency di Indonesia. Jurnal EMT KITA, 5(1), 91–98. https://doi.org/10.35870/EMT.V5I1.425

Karthikeyan. (2020). Introduction To Stock Market. Independently Published.

Khan, S. N. (2022). The legality of cryptocurrency from an Islamic perspective: a research note. Journal of Islamic Accounting and Business Research, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JIABR-02-2022-0041/FULL/XML

Liu, Y., & Tsyvinski, A. (2021). Risks and returns of cryptocurrency. Review of Financial Studies, 34(6), 2689–2727. https://doi.org/10.1093/rfs/hhaa113

MUI. (2021). Keputusan Fatwa Hukum Uang Kripto atau Cryptocurrency - Majelis Ulama Indonesia. https://mui.or.id/berita/32209/keputusan-fatwa-hukum-uang-kripto-atau-cryptocurrency/

Pho, K. H., Ly, S., Lu, R., Hoang, T. H. Van, & Wong, W. K. (2021). Is Bitcoin a better portfolio diversifier than gold? A copula and sectoral analysis for China. International Review of Financial Analysis, 74, 101674. https://doi.org/10.1016/J.IRFA.2021.101674

Rufino, C. (2019). An analysis of the risk-return profile of the daily Bitcoin prices using different variants of the GARCH Model. July, 9.

Saksonova, S., & Kuzmina-Merlino, I. (2019). Cryptocurrency as an investment instrument in a modern financial market. ВеÑтник Санкт-ПетербургÑкого УниверÑитета. Экономика, 35(2), 269–282. https://doi.org/10.21638/SPBU05.2019.205

Santoso, S. (2014). Statistik Parametrik Edisi Revisi. Elex Media Komputindo.

Setiawan, E. P. (2020). Analisis Potensi dan Risiko Investasi Cryptocurrency di Indonesia. Jurnal Manajemen Teknologi, 19(2), 130–144. https://doi.org/10.12695/jmt.2020.19.2.2

Troster, V., Tiwari, A. K., Shahbaz, M., & Macedo, D. N. (2019). Bitcoin returns and risk: A general GARCH and GAS analysis. Finance Research Letters, 30, 187–193. https://doi.org/10.1016/J.FRL.2018.09.014

Wartoyo, & Septian Haerisma, A. (2022). Cryptocurrency in The Perspective of Maqasid Al-Shariah. Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies, 18(1), 110–139. https://doi.org/10.18196/AFKARUNA.V18I1.14164




DOI: http://dx.doi.org/10.30659/ijibe.8.1.40-53

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

IJIBE (International Journal of Islamic Business Ethics) has been Indexed by

Journal Terindex di Google ScholarJournal Terindex di Portal GarudaJournal Terindex di SintaJournal Terindex di Crossref
IJIBE (nternational Journal of Islamic Business Ethics) 
   

Published by

Economic Faculty, Unversitas Islam Sultan Agung

IJIBE is licensed under Creative Commons Attribution-ShareAlike 4.0 International License 

Jalan Kaligawe Raya KM.4, Terboyo Kulon, Genuk,
 
 
Semarang, Central Java, Indonesia, 50112 Creative Commons License