I have been playing around
investing in cryptocurrencies for a while. I started with bitcoin (BTC) and
gradually expanded to include other coins. But with the rapid growth in their
prices, followed by a rapid fall, I’m wondering if I should just forget all the
other coins and just focus on BTC’s. I decided to look at the growth rates of
the top 25 coins by market cap to see if I could find some support for this
view.
I downloaded the prices history for each of the top 25 and
focused initially on the data for one year, the last 3 quarters of 2017 and the
1st quarter of 2018. I then wrote a program to do linear regression
of the closing price by day. This resulted in a slope co-efficient which
reflects the rate of growth over the period. I divided this by the average
closing price during the period and determined a growth rate percentage.
Following are two charts plotting the data with the regression line shown over
the daily closing prices. One is for bitcoin (BTC) and the other for Vechain
(VEN).
The actual data can be found in the following file;
https://drive.google.com/file/d/1O2vLagPFmKOkSjMspY9tZ3ydfPDE9YUP/view?usp=sharing
The growth rate for BTC was 0.55% while VEN’s was 1.09%. VEN
was chosen because it had 1 year of data and a high growth rate. Obviously that
rate is deceptive because VEN’s performance was very flat early on. I’ll look
more in depth in my next post.
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