Narrow Results

In several countries in the world, Bitcoin and P2P lending have been accepted and developed strongly. This study aims to evaluate the suitability, pros, and cons of Bitcoin, Fintech, P2P lending, and its platform in emerging markets such as Vietnam. The research used qualitative analysis combined with data collection method published, statistics, analysis, synthesis, comparison, to generate qualitative comments and discussion; evaluate results, the article analyzed and evaluated the impacts of Fintech, P2P lending, and Bitcoin and virtual currency on society of Vietnam, both positive and negative sides. It was found that we need to improve regulations on Fintech and shadow banking to overcome the weaknesses of commercial banks, to reduce risks as many nations in the world accept it. Experiences of other countries such as the United States, Japan, China, or the developed countries of the European Union and consequences for the economy became a lesson for well as developing countries. Hence, we need to implement risk management plans to reduce technological and IT risks. Proper solutions and development orientation as well as risk management for Bitcoin and cryptocurrencies are suggested. Last but not least, the research was limited to the case of Vietnam; hence, we can expand research to other Asian countries or other emerging markets.

This research discusses the role of cryptocurrencies in portfolio investment and observes the timing within which the cryptos provide benefit to investors in a traditional financial market. We first use a mean-variance spanning test to check for any improvement that cryptos bring to a well-diversified portfolio and find a significant difference between port-folios with and without cryptos. Second, we analyze the weight dynamics of cryptos in the minimum-variance portfolio and the tangent portfolio to examine if cryptos present a hedging property in the mean-variance viewpoint. The finding shows that the optimal weights of cryptos increase distinctly in a market distress period, which shows their hedging property in a mean-variance view. Finally, we include cryptos in a well-diversified portfolio composed of common assets to check their weight dynamics in both tangent portfolio and minimum-variance portfolio. Consequently, we found that the cryptos take more weights in the tangent portfolio rather than in the minimum-variance portfolio, while the weights of cryptos increased in both portfolios during the COVID-19 pandemic; we thus conclude that cryptocurrencies can bring some hedging effect even in a portfolio with very common traditional assets. We also compare gold and cryptos and find that they have a similar pattern of weight dynamics, although gold has a slightly better effect in eliminating the downside risk of a minimum-variance portfolio.