Problem Description: The blockchain is a decentralized ledger of all transactions across a peer-to-peer network.

Problem Description:

The blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority (or a middle man). According to some, replacing the middle man with a revolutionary technology that is faster, cheaper and as secure will greatly improve market efficiency.

One application of blockchain technology in finance is the "cryptocurrencies", with the best known example being "Bitcoin". Some believe that such a secure, global, and digital currency represents the future of finance, while some are not optimistic about the future of Bitcoin and cryptocurrencies in general.

Useful links on blockchain and cryptocurrencies:

https://www.data61.csiro.au/en/our-work/safety-and-security/secure-systems-and-platforms/blockchain

https://www.pwc.com/us/en/industries/financial-services/fintech/bitcoin-blockchain-cryptocurrency.html

Your task is to evaluate recent prices of Bitcoin and based on this evidence whether individuals should invest in Bitcoin. There are two parts to this assignment, each of which is described in detail:

Part A (Group Work: 2 + 2 + 2 + 2 + 4 + 3 + 3 + 4 = 22 marks; professional report = 8 marks)

Locate the data file (Assignment Bus Stats.xls) on CANVAS.

1. Using the most appropriate type of graph to present weekly closing price of the Bitcoin and provide a general description. Hint: What are the main features of this graph, is there a trend? [Topic 1]

2. Calculate the weekly return and construct a histogram. Does the data appear normally distributed? Is there evidence of outliers? Hint: the formula for a return is (Current Price - Previous price)/Previous price multiplied by 100 [Topics 1-3]