Calculation of Betas for Bitcoin

This paper seeks to estimate the Beta of Bitcoin with respect to three different portfolios and answer the question whether we should include bitcoin as part of our investment portfolio using Markowitz Portfolio Optimization. It begins with a brief introduction to Bitcoin and challenges of investing in Bitcoin followed by a concise description of Beta calculation using the CAPM theory, results from calculation of Betas with respect to three portfolios and lastly, the efficient frontier obtained from including Bitcoin to an existing portfolio of twenty-one randomly selected stocks.