Comparative Financial Performance and Market Efficiency of Cryptocurrencies Versus Traditional Assets: Evidence from India
Main Article Content
Abstract
This study compares the financial performance and market efficiency of cryptocurrencies and traditional assets in India. The rapid growth of digital currencies (e.g., Bitcoin, Ethereum, Tether [USDT], and Binance Coin) has attracted substantial investor interest. Using secondary data, the study evaluates return, volatility, and risk–return trade-offs for selected leading cryptocurrencies and traditional assets (e.g., equities, gold, bank deposits, fixed-income instruments such as post-office fixed-deposit schemes, mutual funds, and real estate).
In addition, 25 semi-structured interviews with Indian retail investors were used to document investment preferences and participation across asset classes. Results suggest that cryptocurrencies offer comparatively higher return potential but exhibit substantially greater volatility than traditional investments, which tend to demonstrate more stable and predictable performance. The study also discusses market efficiency and investor behavior in the Indian financial context, with particular attention to regulatory developments and market maturity.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
References
Bariviera, A. F., & Merediz-Solá, I. (2020). Cryptocurrencies and their relationship with traditional financial assets: A literature review. Journal of Risk and Financial Management, 13(1), 1–17.
Chopra, M., & Mehta, C. (2022). Bitcoin as a hedge and safe haven: Evidence from financial markets. Cogent Economics & Finance, 10(1), 1–15.
Fang, F., Ventre, C., Basios, M., Kanthan, L., Martinez Rego, D., Wu, F., & Li, L. (2022). Cryptocurrency trading: A comprehensive survey. Financial Innovation, 6(1), 1–29.
Ghosh, K., & Das, P. K. (2025). Cryptocurrency investment and regulation in India. Asian Journal of Economics and Banking, 9(2), 101–118.
Milunovich, G. (2018). Cryptocurrencies and traditional asset classes: A portfolio analysis. Economic Papers, 37(2), 81–94.
Sharma, G. D., Yadav, A., & Chopra, R. (2019). Bitcoin as an investment alternative: A systematic review. Journal of Financial Economic Policy, 11(4), 1–18.
Singh, V. V., Sharma, R., & Patel, H. (2024). Comparative performance of Bitcoin and Indian stock market indices. Vision: The Journal of Business Perspective, 28(1), 45–58.