Project Report

on

‘A Comparative Study on Consumer Preferences towards

Cryptocurrency and Stock Market’
Submitted in partial fulfillment of the requirements
for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Mr. Pramod Pandey Vivek
08014201719

Jagannath International Management School, Vasant Kunj, New Delhi

Batch :2019-2022
 CERTIFICATE FROM COLLEGE

This is to Certify that Project Report (BBA-311) titled “A Study On Consumer Preferences on

Cryptocurrency and Stock Market’” done by VIVEK, Roll No.08014201719, is completed under my

guidance.

Signature of the Guide

Date:

Name of the Guide: DR. PRAMOD PANDEY

 Acknowledgement

I would like to express gratitude and thanks to Dr. Pramod Pandey for

giving me the guidance. I owe her everything, I gained ample knowledge

and experience from him, as without her timely support and encouragement

this project would not have been fruitful as it has been.

I also thank her, for constant encouragement and guidance at every stage

of this project, acting as my faculty guide. She hasbeen kind enough to

spare her valuable time and share her corporate experiences, which helped

me to approach the project in the right way.

Undertaking and being a part of this project has been an enjoyable

experience and I would definitely like to take up more such projects.

VIVEK

3
 Table of Contents

S No Topic Page No

1 Certificate 2

2 Acknowledgement 3

3 Table of Contents 4.

4 Chapter I: Introduction 5
 Introduction to topic 6
 Objectives of the study 25
26
 Review of Literature 36
 Research Methodology 40
 Limitations of the study

5 Chapter-2: Sustainable Development Goals 41

6 Chapter-3: Analysis and Interpretation of Data 52

7 Chapter-4: Conclusions and Recommendations 67

8 References/Bibliography 72

8 Annexures 74

4
 CHAPTER-1

INTRODUCTION
TO THE
PROJECT

5
1.1 Introduction

1.1.1 Meaning of the Cryptocurrency and Stock Market

Cryptocurrency

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists

digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a

central issuing or regulating authority, instead using a decentralized system to record transactions

and issue new units. Cryptocurrency is a digital payment system that doesn't rely on banks to verify

transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive

payments. Instead of being physical money carried around and exchanged in the real world,

cryptocurrency payments exist purely as digital entries to an online database describing specific

transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public

ledger. Cryptocurrency is stored in digital wallets.

Cryptocurrency received its name because it uses encryption to verify transactions. This means

advanced coding is involved in storing and transmitting cryptocurrency data between wallets and

to public ledgers. The aim of encryption is to provide security and safety.

The first cryptocurrency was Bitcoin, which was founded in 2009 and remains the best known

today. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times

driving prices skyward.

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions

updated and held by currency holders. Cryptocurrency Units of cryptocurrency are created through

a process called mining, which involves using computer power to solve complicated mathematical

problems that generate coins. Users can also buy the currencies from brokers, then store and spend

them using cryptographic wallets.

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If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows

you to move a record or a unit of measure from one person to another without a trusted third party.

Although Bitcoin has been around since 2009, cryptocurrencies and applications of blockchain

technology are still emerging in financial terms, and more uses are expected in the future.

Transactions including bonds, stocks, and other financial assets could eventually be traded using

the technology.

Stock Market

The stock market broadly refers to the collection of exchanges and other venues where the buying,

selling, and issuance of shares of publicly held companies take place. Such financial activities are

conducted through institutionalized formal exchanges (whether physical or electronic) or

via over-the-counter (OTC) marketplaces that operate under a defined set of regulations.

While both the terms “stock market” and “stock exchange” are often used interchangeably, the

latter term generally comprises a subset of the former. If one trades in the stock market, it means

that they buy or sell shares on one (or more) of the stock exchange(s) that are part of the overall

stock market. A given country or region may have one or more exchanges comprising their stock

market. The leading U.S. stock exchanges include the New York Stock Exchange (NYSE) and

the Nasdaq. These leading national exchanges, along with several other exchanges operating in

the country, form the stock market of the United States.

The stock market allows numerous buyers and sellers of securities to meet, interact, and transact.

Stock markets allow for price discovery for shares of corporations and serve as a barometer for

the overall economy. Since the number of stock market participants is huge, one can often be

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assured of a fair price and a high degree of liquidity as various market participants compete with

one another for the best price.

A stock market is a regulated and controlled environment. In the United States, the main

regulators include the Securities and Exchange Commission (SEC) and market participants under

the purview of the Financial Industry Regulatory Authority (FINRA). Since the stock market

brings together hundreds of thousands of market participants who wish to buy and sell shares, it

ensures fair pricing practices and transparency in transactions. While earlier stock markets used

to issue and deal in paper-based physical share certificates, the modern-day computerized stock

markets operate electronically.

1.1.2 Types of Cryptocurrency and Stocks

Cryptocurrency

There are thousands of cryptocurrencies. Some of the best known are

1. Bitcoin :- Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly

traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym

for an individual or group of people whose precise identity remains unknown.

2. Ethereum :- Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency,

called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

3. Litecoin :- This currency is most similar to bitcoin but has moved more quickly to develop new

innovations, including faster payments and processes to allow more transactions.

4. Ripple :- Ripple is a distributed ledger system that was founded in 2012. Ripple can be used to

track different kinds of transactions, not just cryptocurrency. The company behind it has worked

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 with various banks and financial institutions. Non-Bitcoin cryptocurrencies are collectively

known as “altcoins” to distinguish them from the original.

Stocks

Stocks can be classified into multiple categories on various parameters – size of the company,

dividend payment, industry, risk, volatility, as well as fundamentals.

 Stocks on the basis of ownership rules

This is the most basic parameter for classifying stocks. In this case, the issuing company decides

whether it will issue common, preferred or hybrid stocks.

 Preferred & common stocks

The key difference between common and preferred stocks is in the promised dividend payments.

Preferred stocks promise investors that a fixed amount will be paid as dividends every year. A

common stock does not come with this promise. For this reason, the price of a preferred stock is

not as volatile as that of a common stock. Another key difference between a common stock and a

preferred stock is that the latter enjoy greater priority when the company is distributing surplus

money. However, if the company is getting liquidated – its assets are being sold off to pay off

investors, then the claims of preferred shareholders rank below that of the company’s creditors,

and bond- or debenture-holders. Another distinction is that preferred shareholders may not have

voting rights unlike holders of common stocks.

 Hybrid stocks

Some companies also issue hybrid stocks. These are often preferred shares that come with an

option to be converted into a fixed number of common stocks at a specified time. These kinds of

stocks are called ‘convertible preferred shares’. Since these are hybrid stocks, they may or may

not have voting rights like common stocks.

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 Stocks with embedded-derivative options

Some stocks come with an embedded derivative option. This means it could be ‘callable’ or

‘putable’. A ‘callable’ stock is one which has the option to be bought back by the company at a

certain price or time. A ‘putable’ share gives the stockholder the option to sell it to the company

at a prescribed time or price. These kinds of stocks are not commonly available.

 Stocks on the basis of market capitalization

Stocks are also classified on the basis of the market value of the total shareholding of a company.

This is calculated using market capitalization, where you multiply the share price by the total

number of issued shares. There are three kinds of stocks on the basis of market capitalization:

 Small-cap stocks

‘Cap’ is the short form of ‘Capitalization’. As the name suggests, these are stocks with the

10
 smallest values in the market. They often represent small-size companies. Generally companies

that have a market capitalization in the range of up to Rs. 250 crore are small cap stocks.

These stocks are the best option for an investor who wishes to generate significant gains in the

long run; as long he does not require current dividends and can withstand price volatility. This is

because small companies have the potential to grow rapidly in the future. So, an investor may

profit by buying the stock when it is cheaply available in the company’s initial stage. However,

many of these companies are relatively new. So, it is difficult to predict how they will perform in

the market. Being small enterprises, growth spurts dramatically affect their values and revenues,

sending prices soaring. On the other hand, the stocks of these companies tend to be volatile and

may decline dramatically.

 Mid-cap stocks

Mid-cap stocks are typically stocks of medium-sized companies. Generally, companies that have

a market capitalization in the range of Rs.250 crore and Rs.4,000 crore are mid-cap stocks.

These are stocks of well-known companies, recognized as seasoned players in the market. They

offer you the twin advantages of acquiring stocks with good growth potential as well as the

stability of a larger company. Mid-cap stocks also include baby blue chips – companies that

show steady growth backed by a good track record. They are like blue-chip stocks (which are

large-cap stocks), but lack their size. These stocks tend to grow well over the long term.

 Large-cap stocks

Stock of the largest companies in the market such as Tata, Reliance, ICICI are classified as large-

cap stocks. They are often blue-chip firms. Being established enterprises, they have at their

disposal large reserves of cash to exploit new business opportunities. However, the sheer size of

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 large-cap stocks does not let them grow as rapidly as smaller capitalized companies and the

smaller stocks tend to outperform them over time.

Investors, however, gain the advantages of reaping relatively higher dividends compared to

small- and mid-cap stocks, while also ensuring the long-term preservation of their capital. Stocks

on the basis of dividend payments. Dividends are the primary source of income until the shares

are sold for a profit. Stocks can be classified on the basis of how much dividend the company

pays.

 Income stocks

These are stocks that distribute a higher dividend in relation to their share price. They are also

called dividend-yield or dog stocks. So, a higher dividend means larger income. This is why

these stocks are also called income stocks.

Income stocks usually represent stable companies that distribute consistent dividends. However,

these companies often are not high-growth companies. As a result, the stock’s price may not rise

much. Preferred stocks are also income stocks, since they promise regular dividend payments.

Income stocks are thus preferred by investors who are looking for a secondary source of income.

They are relatively low-risk stocks. Investors are not taxed for their dividend income. This is

another reason that long-term, relatively low-risk investors prefer income stocks. So how to find

such stocks? Use the dividend-yield measure to identify stocks that pay high dividends. The

dividend yield gives a measure of how much an investor is earning (per share) from the

investment by way of total dividends. It is calculated by dividing the dividend announced by the

share price, and then written in percentage format. For example, a stock with a price of Rs. 1000

offers a dividend of Rs.5 per share has a dividend yield is 0.5%.

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 Growth stocks

Not all stocks pay high dividends. This is because, companies prefer to reinvest their earnings for

company operations. This usually helps the company grow at a faster rate. As a result, such

stocks are often called growth stocks. Since the company grows at a faster rate, the value of the

shares also rises. This helps the investor earn a higher return when the stock is sold, although this

comes at the expense of lower income through dividends. For this reason, investors choose such

stocks for their long-term growth potential, and not for a secondary source of income. However,

if the company ceases to grow, it cannot be called a growth stock. This makes such stocks more

risky than income stocks.

 Stocks on the basis of fundamentals

Followers of value investing believe that a share price should equal the intrinsic value of the

company’s share. They, thus, compare recent share prices with per-share earnings, profits and

other financials to arrive at the intrinsic value per share.

 If a share price exceeds this intrinsic value, the stock is believed to be overvalued. In contrast, if

the price is lower than the intrinsic value, the stock is considered to be undervalued.

 Undervalued stocks are also called ‘value stocks’. They are preferred by value investors, as they

believe the share price will eventually rise in the future.

Stocks on the basis of risk:

Some stocks are riskier than others. This is because their share prices fluctuate more. However,

just because a stock is risky does not mean investors should avoid it. Risky stocks have the

potential to make you greater profits. Low-risk stocks, in contrast, give you lower returns.

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 Blue-chip stocks

These are stocks of well-established companies with stable earnings. These companies have

lower liabilities like debt. This helps the companies pay regular dividends. Blue-chip stocks are

thus considered safe and stabile. They are named after blue-colored chips in the game of poker,

as the chips are considered the most valuable.

 Beta stocks

Analysts measure risk – called beta – by calculating the volatility in its price. Beta values can

have positive or negative values. The sign merely denotes if the stock is likely to move in sync

with the market or against the market. What really matters is the absolute value of beta. Higher

the beta, greater the volatility and thus more the risk. A beta value over 1 means the stock is

more volatile than the market. Thus, high beta stocks are riskier. However, a smart investor can

use this to make greater profits.

Stocks on the basis of price trends:

Prices of stocks often move in tandem with company earnings. Stocks are thus classified into two

groups:

 Cyclical stocks

Some companies are more affected by economic trends. Their growth moderates in a slow

economy, or fastens in a booming economy. As a result, prices of such stocks tend to fluctuate

more as economic conditions change. They rise during economic booms, and fall as the economy

slows down. Stocks of automobile companies are the best example of cyclical stocks.

 Defensive stocks

Unlike cyclical stocks, defensive stocks are issued by companies relatively unmoved by

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 economic conditions. Best examples are stocks of companies in the food, beverages, drugs and

insurance sectors. Such stocks are typically preferred when economic conditions are poor, while

cyclical stocks are preferred when the economy is booming.

1.1.3 How To Buy Cryptocurrency And Stocks

Cryptocurrency

There are typically three steps involved in buying the Cryptocurrency :

Step 1 :- Choosing a platform

The first step is deciding which platform to use. Generally, you can choose between a traditional

broker or dedicated cryptocurrency exchange:

 Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as

well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower

trading costs but fewer crypto features.

 Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each

offering different cryptocurrencies, wallet storage, interest-bearing account options, and more.

Many exchanges charge asset-based fees.

When comparing different platforms, consider which cryptocurrencies are on offer, what fees they

charge, their security features, storage and withdrawal options, and any educational resources.

Step 2 :- Funding your account

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Once you have chosen your platform, the next step is to fund your account so you can begin trading

. Most crypto exchanges allow users to purchase crypto using fiat (i.e., government-issued)

currencies such as the US Dollar, the British Pound, or the Euro using their debit or credit cards –

although this varies by platform.

Crypto purchases with credit cards are considered risky, and some exchanges don't support them.

Some credit card companies don't allow crypto transactions either. This is because

cryptocurrencies are highly volatile, and it is not advisable to risk going into debt — or potentially

paying high credit card transaction fees — for certain assets.

Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods

and time taken for deposits or withdrawals differ per platform. Equally, the time taken for deposits

to clear varies by payment method.

An important factor to consider is fees. These include potential deposit and withdrawal transaction

fees plus trading fees. Fees will vary by payment method and platform, which is something to

research at the outset.

Step 3:- Placing an order

You can place an order via your broker's or exchange's web or mobile platform. If you are planning

to buy cryptocurrencies, you can do so by selecting "buy," choosing the order type, entering the

amount of cryptocurrencies you want to purchase, and confirming the order. The same process

applies to "sell" orders. There are also other ways to invest in crypto. These include payment

services like PayPal, Cash App, and Venmo, which allow users to buy, sell, or hold

cryptocurrencies. In addition, there are the following investment vehicles:

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 Bitcoin trusts: You can buy shares of Bitcoin trusts with a regular brokerage account. These

vehicles give retail investors exposure to crypto through the stock market.

 Bitcoin mutual funds: There are Bitcoin ETFs and Bitcoin mutual funds to choose from.

 Blockchain stocks or ETFs: You can also indirectly invest in crypto through blockchain

companies that specialize in the technology behind crypto and crypto transactions. Alternatively,

you can buy stocks or ETFs of companies that use blockchain technology.

STOCKS

Stocks can be classified into multiple categories on various parameters – size of the company,

dividend payment, industry, risk, volatility, as well as fundamentals.

Step 1 :- Open demat and trading accounts. Without these two accounts, you cannot trade in the

stock markets. Read how to open a demat account here, and a trading account here.

Step 2 :- First, analysis stocks and select ones that fit your investment profile. Read how to conduct

stock market analysis.

Step 3:- Once you have selected your stock, monitor it for a while. This is to ensure you buy at the

lowest price possible in the near-term. Understand how the stock price moves. First, analysis stocks

and select ones that fit your investment profile. Read how to conduct stock market analysis.

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Step 4 :- Decide when you want to place your order – during market times or after markets. This

depends on the share price you are targeting. If you want to buy a stock at a fixed price, and the

stock closed at that price, place the order after markets. If you feel you are likely to get a lower

price during market hours, place it when the market is open for trading.

Step 5 :- Decide the kind of order you want to place. There are three kinds of orders – a limit order,

a market order and a stop loss order, IOC (Immediate or cancel). A market order is the simplest of

the lot – you simply place an order without any other specifications. In a limit order, you set an

upper price limit. Suppose you have placed a limit order for 10 shares with a limit price of Rs.100

when the share price is Rs.99. You trade will be processed as long as shares are available at Rs.100

or below. So, if only 8 shares are available, only 8 out of the 10 requested will be purchased. This

ensures you don’t pay more than a specified amount.

Step 6 :- Once you have decided the specifics of your order, you either go online to your trading

account to place the order, or call your broker. Give your bank account details so that the purchase

money can be deducted from your account.

Step 7 :- Once you have decided the specifics of your order, you either go online to your trading

account to place the order, or call your broker. Give your bank account details so that the purchase

money can be deducted from your account.

1.1.4 Advantages and Disadvantages of Cryptocurrency and Stocks

Advantages of Investing in Cryptocurrency

1. Protection from inflation:- Inflation has caused many currencies to get their value declined

with time. Almost every cryptocurrency, at the time of its launch, is released with a fixed

amount. The source code specifies the amount of any coin; like, there are only 21 million

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 Bitcoins released in the world. So, as the demand increases, its value will increase which will

keep up with the market and, in the long run, prevent inflation.

2. Self-governed and managed:- Governance and maintenance of any currency is a major factor

for its development. The cryptocurrency transactions are stored by developers/miners on

their hardware, and they get the transaction fee as a reward for doing so. Since the miners

are getting paid for it, they keep transaction records accurate and up-to-date, keeping the

integrity of the cryptocurrency and the records decentralized.

3. Secure and private :- Privacy and security have always been a major concern for

cryptocurrencies. The blockchain ledger is based on different mathematical puzzles, which

are hard to decode. This makes a cryptocurrency more secure than ordinary electronic

transactions. Cryptocurrencies, for better security and privacy, use pseudonyms that are

unconnected to any user, account or stored data that could be linked to a profile.

4. Currency exchanges can be done easily :- Cryptocurrency can be bought using many

currencies like the US dollar, European euro, British pound, Indian rupee or Japanese yen.

With the help of different cryptocurrency wallets and exchanges, one currency can be

converted into the other by trading in cryptocurrency, across different wallets, and with

minimal transaction fees.

5. Decentralized :- A major pro of cryptocurrency is that they are mainly decentralized. A lot

of cryptocurrencies are controlled by the developers using it and the people who have a

significant amount of the coin, or by an organization to develop it before it is released into

the market. The decentralization helps keep the currency monopoly free and in check so that

no one organization can determine the flow and the value of the coin, which, in turn, will

keep it stable and secure, unlike fiat currencies which are controlled by the government.

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6. Cost-effective mode of transaction :- One of the major uses of cryptocurrencies is to send

money across borders. With the help of cryptocurrency, the transaction fees paid by a user is

reduced to a negligible or zero amount. It does so by eliminating the need for third parties,

like VISA or PayPal, to verify a transaction. This removes the need to pay any extra

transaction fees.

7. A fast way to transfer funds :- Cryptocurrencies have always kept itself as an optimal solution

for transactions. Transactions, whether international or domestic in cryptocurrencies, are

lightning-fast. This is because the verification requires very little time to process as there are

very few barriers to cross.

Disadvantages of Investing in Cryptocurrency :

1. Can be used for illegal transactions :- Since the privacy and security of cryptocurrency

transactions are high, it’s hard for the government to track down any user by their wallet

address or keep tabs on their data. Bitcoin has been used as a mode of exchanging money

in a lot of illegal deals in the past, such as buying drugs on the dark web. Cryptocurrencies

are also used by some to convert their illicitly obtained money through a clean

intermediary, to hide its source.

2. Data losses can cause financial losses :- The developers wanted to create virtually

untraceable source code, strong hacking defenses, and impenetrable authentication

protocols. This would make it safer to put money in cryptocurrencies than physical cash

or bank vaults. But if any user loses the private key to their wallet, there’s no getting it

back. The wallet will remain locked away along with the number of coins inside it. This

will result in the financial loss of the user.

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3. Decentralized but still operated by some organization:- The cryptocurrencies are known

for its feature of being decentralized. But, the flow and amount of some currencies in the

market are still controlled by their creators and some organizations. These holders can

manipulate the coin for large swings in its price. Even hugely traded coins are susceptible

to these manipulations like Bitcoin, whose value doubled several times in 2017.

4. Some coins not available in other fiat currencies :- Some cryptocurrencies can only be

traded in one or a few fiat currencies. This forces the user to convert these currencies into

one of the major currencies, like Bitcoin or Ethereum first and then through other

exchanges, to their desired currency. This applies to only a few cryptocurrencies. By

doing this, the extra transaction fees are added in the process, costing unnecessary money.

5. Adverse Effects of mining on the environment :- Mining cryptocurrencies require a lot

of computational power and electricity input, making it highly energy-intensive. The

biggest culprit in this is Bitcoin. Mining Bitcoin requires advanced computers and a lot

of energy. It cannot be done on ordinary computers. Major Bitcoin miners are in countries

like China that use coal to produce electricity. This has increased China’s carbon

footprint tremendously.

6. Susceptible to hacks :- Although cryptocurrencies are very secure, exchanges are not that

secure. Most exchanges store the wallet data of users to operate their user ID properly.

This data can be stolen by hackers, giving them access to a lot of accounts.

After getting access, these hackers can easily transfer funds from those accounts. Some

exchanges, like Bitfinex or Mt Gox, have been hacked in the past years and Bitcoin has

been stolen in thousands and millions of US dollars. Most exchanges are highly secure

nowadays, but there is always a potential for another hack.

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7. No refund or cancellation policy :- If there is a dispute between concerning parties, or if

someone mistakenly sends funds to a wrong wallet address, the coin cannot be retrieved

by the sender. This can be used by many people to cheat others out of their money. Since

there are no refunds, one can easily be created for a transaction whose product or services

they never received.

Advantages of Investing in Stocks

1. Takes advantage of a growing economy :- As the economy grows, so do corporate earnings.

That's because economic growth creates jobs, which creates income, which creates sales.

The fatter the paycheck, the greater the boost to consumer demand, which drives more

revenues into companies' cash registers. It helps to understand the phases of the business

cycle—expansion, peak, contraction, and trough.

2. Best way to stay ahead of inflation :- Historically, over the long term stocks have yielded

a generous annualized return. For example, as of January 31, 2022, the 10-year annualized

return for the S&P 500 was 15.43%. That's better than the average

annualized inflation rate. It does mean you must have a longer time horizon, however. That

way, you can buy and hold even if the value temporarily drops.

3. Easy to buy :- The stock market makes it easy to buy shares of companies. You can

purchase them through a broker or a financial planner, or online. Once you've set up an

account, you can buy stocks in minutes.

4. Don't need a lot of money to start stock investing :- Most retail brokers such as Charles

Schwab, let you buy and sell stocks commission-free. Some brokers such as Fidelity also

22
 don't require account minimums. If the stock you want to buy is too expensive, you can

also buy fractional shares if you broker allows for such investment.

5. Make money in two ways :- Most investors intend to buy low then sell high. They invest

in fast-growing companies that appreciate in value. That's attractive to both day traders and

buy-and-hold investors. The first group hopes to take advantage of short-term trends, while

the latter expect to see the company's earnings and stock price grow over time. They both

believe their stock-picking skills allow them to outperform the market. Other investors

prefer a regular stream of cash. They purchase stocks of companies that pay dividends.

Those companies grow at a moderate rate.

6. Liquidity :- The stock market allows you to sell your stock at any time. Economists use the

term "liquid" to mean that you can turn your shares into cash quickly and with low

transaction costs. That's important if you suddenly need your money. Since prices

are volatile, you run the risk of being forced to take a loss.

Disadvantages of Investing in Stocks

1. Risk :- You could lose your entire investment. If a company does poorly, investors will

sell, sending the stock price plummeting. When you sell, you will lose your initial

investment. If you can't afford to lose your initial investment, then you should buy bonds.

2. Common stockholders paid last :- Preferred stockholders and bondholders or creditors get

paid first if a company goes broke. But that happens only if a company goes bankrupt. A

well-diversified portfolio should keep you safe if any company goes under.

3. Time :- If you are buying stocks on your own, you must research each company to

determine how profitable you think it will be before you buy its stock. You must learn how

23
 to read financial statements and annual reports and follow your company's developments

in the news. You also have to monitor the stock market itself, as even the best company's

price will fall in a market correction, a market crash, or bear market.

4. Taxes :- If you sell your stock for a loss, you may be able to get a tax break. However, if

you sell your stock for a profit, you'd be liable to pay capital gains taxes.

5. Emotional roller coaster :- Stock prices rise and fall second by second. Individuals tend to

buy high out of greed, and sell low out of fear. The best thing to do is not constantly look

at the price fluctuations of stocks, and just check in on a regular basis.

6. Professional competition :- Institutional investors and professional traders have more time

and knowledge to invest. They also have sophisticated trading tools, financial models, and

computer systems at their disposal.

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1.2 Objectives

1. To Analyze the consumer preferences of investment in Cryptocurrency.

2. To Analyze the consumer preferences of investment in Stock Market.

3. To achieve a Comparative Analysis between the Cryptocurrency and Stock Market.

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1.3 REVIEW OF LITERATURE

Penkova, Korolev, Butenko, Glazkova, Eldarov (2018):The purpose of the study is to

determine the important direction of the international experience of state regulation regarding the

use of cryptocurrencies in the digital economy. The survey method is a dynamic analysis method

for determining the development trend of the international cryptocurrency market and a

comparative analysis for determining the general and different trends of national regulation of

cryptocurrency turnover in the financial systems of various countries. It consists of methods. As a

result of the investigation, certain conclusions were drawn. The essence and operating principle of

the ICO is determined. ICOs and IPOs are compared as financial products in the digital economy.

A comparative analysis of the experience of using cryptocurrencies in different countries is

performed. The key requirements for expanding the use of cryptocurrencies as a model financial

tool for the digital economy have been formulated. The factors behind the rapid growth of the RUB

/ cryptocurrency exchange rate have been shown. These include high demand from financial

institutions, the outflow of stock market players, an increase in positive images, and the creation

of new variations of cryptocurrencies based on existing technology. Issuance of futures related to

cryptocurrencies. Given the international experience in this area, recommendations have been

made to select directions for forming measures to control and monitor the issuance and rotation of

cryptocurrencies at the legislative level of Russia. I am. Virtual finance enables tools.

Semenkova (2019): In this article, abnormalities stated that the world's global historical "foam" is

in the form of a global history of the world's stock market. This phenomenon hurts most investors'

bags that do not fully understand the nature of the stock market. This issue is that investors can

earn money in all markets, so investors can run at the time of economic growth and recession, so

they are related at all stages of the economic cycle. We will consider analyzing past explicit

26
speculative examples: Tulipmanney, Panama Canal Scrap, Nankai Bubble, and also the behavior

of Twitter company will spread Bitcoin Kryptokreis. Taking the basic value of these assets, it

provides the most important multiplier and the most commonly used in the financial world. Defines

tools that facilitate the formation of speculative bubbles. Following the results of the analysis, we

will identify common characteristics of this anomaly and reach conclusions that will help investors

understand the mechanism of stock market functioning and the basic principles to follow when

choosing assets in a portfolio. And when you need it. By adhering to these principles, investors

emphasize that hedging speculative bubbles and significantly improving the quality of their

investments. Investors can invest in clear transactions and determine the fair price of future

transactions.

Ben, XIAOQIONG (2019): To summarize, we inspect the overall performance of ten

cryptocurrencies: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Stellar, Monero, IOTA, Ripple,

Cardano, and EOS and examine their overall performance with the important U.S. marketplace

indexes. We display significant version withinside the overall performance of cryptocurrencies.

For instance, month-to-month returns of the cryptocurrencies can exceed 50% or greater in any

given month, adversely it may additionally fall by the identical quantity the subsequent month. If

an investor is danger unfavorable than cryptocurrencies aren't appropriate investments due to the

feasible losses. However, if an investor is danger seeking, then the cryptocurrencies are excellent

investment, due to the capability gains. We additionally report that essential variables, such as

Consumer Price Index (CPI), Industrial Production Index, Real Personal Consumption

Expenditures, 10 Year T-invoice Rate, and Unemployment rate, are much less possibly to have an

effect on the returns of cryptocurrencies. Whereas the S&P 500 index and the trade charges among

27
U.S. Dollars and Euros are substantially related to the overall performance of cryptocurrencies.

Pirgaip, Dinçergök, Haşlak (2019): The motive of this examine is to research Bitcoin (BTC)

marketplace costs and to reply the query of whether or not there's a dating among BTC and

different asset costs, wherein different property consist of currencies, commodities, securities and

altcoins. In the empirical part, we compare the lead-lag relationships amongst every form of asset.

Consequently, we evaluate BTC with main currencies and inventory exchanges of the U.S., the

EU, the U.K. and Japan (USD-SPX, EUR-DAX, GBP-FTSE and JPY-NIK), with currencies and

inventory exchanges of the U.S., the U.K., Russia, Venezuela and China wherein BTC is actively

traded (USD-SPX, GBP-FTSE, RUB-MOEX, VEF-IBVC and YUAN- SSCE), with main

commodities (GOLD and OIL) and with main altcoins (ETH, XRP and LTC) on a every day

foundation for the duration spanning from 2010.07 to 2018.12. We appoint Johansen co-

integration, Granger causality, impulse reaction capabilities and forecast mistakess variance

decomposition analyses in our examine. Our consequences display that BTC does now no longer

have a long-run dating with any asset type, however that it has a short-run dating with gold and in

particular altcoins, that are each full-size and bidirectional. While BTC and altcoins are carefully

interrelated with every different, BTC charge version is normally borne via way of means of its

personal costs in all cases.

Dr. Drobyazko (2019) : Attribution of cryptocurrencies to e-commerce is inappropriate due to the

existence of such things. The main differences between these concepts: distributed nature, mining

methods, Extraction, anonymity, etc. Cryptocurrencies have advantages and disadvantages in

comparison. With physical and electronic money. All of this makes it a whole new asset, a new

economy Category. There are two main types of cryptocurrencies. Convertible and non-

convertible. Cryptocurrencies that cannot be converted are centralized. Convertibles can be

28
divided into two subtypes: Central and distributed. Cryptocurrency market is very saturated based

on Bitcoin Other currencies will emerge: Ethereum, Bitcoin Cash, Namecoin, Litecoin, PPCoin,

Novacoin, Dash, Monero, Zcash, Ripple. Cryptocurrency prices are not constant and are very

volatile. Lack of effective legal provisions causes considerable difficulty in remorse

Cryptocurrency transactions in financial accounting. We have cryptocurrencies

Specific features of forex settlement, not in the form of e-commerce Operations are also typical

of accounting for cyber currency transactions. When using Digital currency and cryptocurrency as

payment methods are one of the items of money. Therefore, in the accounting of cyber currencies

under the control of the central bank,The concepts of "exchange rate" and "exchange rate

difference" are certainly applicable.

Soloviev1, Yevtushenko (2019):Therefore, this paper has shown that monitoring and prediction

are possible. Significant changes in both the stock and crypto markets are of utmost importance

meaning. As we have shown, complex system theory is powerful. A toolkit of methods and

models for creating effective indicators that signal accidents and critical phenomena. In this article,

we explored the possibilities of use Random matrix theory measures complexity and

Complex time series. Showed that the measures used are completely possible You can effectively

detect abnormal phenomena in the time-series data used. As we have shown, econophysics has a

powerful set of methods and tools at your disposal. A model for creating effective indicators that

signal a crisis phenomenon. we have We have shown that the maximum eigenvalue λmax can be

effectively used to detect a crisis.Cryptocurrency time series phenomenon. But we Emphasize that

the most attractive property of λmax and PR is λmax. Due to the simplicity of the concept and the

computational efficiency. Fast, robust and convenient screener and detector for unusual patterns

of complex time series. Therefore, the results of this study confirm the essential definition of the

29
concept of early intervention. Diagnosis of crisis phenomena by calculating various complexity

measures Financial system.

P.Singh, R.Singh (2020):The empirical results of the survey show that the SSIC stock index does

not show any fluctuations. It does not affect fluctuations in Bitcoin price fluctuations. That's they

Independent of each other. There is no causal relationship between these two. To On the other

hand, Sensex has a big impact on Bitcoin's volatility. These results are important from the

investor's point of view. That means even more Time series order of movement of time series data

in the case of Sensex and Bitcoin. What is the one-way causal relationship between the Indian

Stock Exchange and Bitcoin? Fiscal and monetary economic policies are identified by policy

makers. The results of this study are consistent with previous studies (Dirican and Canoz, 2017;

Kurka, 2019; Corbet et al., 2018). Result is Opportunity for global portfolio diversification for

investors. This study suggests that investors can diversify their portfolio by investing in SSIC.

Bitcoin, because both are independent and one fluctuation does not generate anything Other

volatility. Investors need to be careful when it comes to the Indian stock market, While diversifying

investment by investing in Indian companies and Bitcoin Increased volatility in the Indian stock

market leads to increased Bitcoin volatility Price fluctuations. Therefore, global investors can

improve risk and reward diversification. A balanced approach to the portfolio while using

cryptocurrencies as part of the investment.A.Hachicha, F. Hachicha (2020): Bitcoin is an

innovative payment network, a new kind of money, a digital payment currency that uses

cryptocurrencies and peer-to-peer technology to create and manage monetary transactions. We

applied these MCMC methods to study various indexes and cryptocurrencies. The ARSVt model

was compared to the SVOL model by the JPR model (1994) using S & P, Down Jones, Nasdaq,

Nikkei, and STOXX. I wanted to investigate the behavior of this cryptocurrency and found that it

30
behaved like a stock index in various international markets exposed to various shocks (Efe Caglar

(2019). Empirical results show that the SVt model can describe some extreme values and is better

suited to consider outliers. First, the ARSVt model offers better compatibility than the MFSV

model, and second, positive and negative shocks do not have the same effect on volatility. Manabu

Asai (2008). Our results demonstrate the efficiency of sample Markov chains and the convergence

and stability of all parameters down to a certain level. Our results are consistent with the study by

Dyhrberg (2016), Bauretal. It is inconsistent with the study of. (2018a, b) Bitcoin claims to have

its own risk and reward characteristics and follow a different volatility process than other assets.

This view is supported by many researchers. Glaser et al. (2014) and Baek and Elbeck (2015a, b).

Cheng,Chieh (2020): This paper examines whether investor sentiment can affect trading

volumes. Volatility of major cryptocurrencies. Keep in mind that investor sentiment is generally

high.This will lead to an increase in the trading volume of Bitcoin and Ethereum. On the other

hand, A Low investor sentiment reduces the volatility of Bitcoin and Ethereum. Besides us, It

turns out that investor sentiment cannot affect Ripple and Litecoin. Control. This impact on

economic policy uncertainty, Bitcoin trading volume and volatility. It remains important. Overall,

investor sentiment in the stock market, It can affect investor behavior in the crypto market.

Jaroenwiriyakul, Tanomchat, Burapha (2020):This study examines the dynamic relationships

between the four major cryptocurrencies (Bitcoin, Ethereum, Ripple and Litecoin) and the

ASEAN5 stock market. The results initially showed that a long-term linkage test using the Engle

and Granger cointegration provided evidence of the relationship between the ASEAN5 stock

market except Malaysia and all cryptocurrencies. Second, using a dynamic conditional

correlation model, the results showed that a time-varying pattern of short-term correlation was

31
found in all relationships. In addition, the relationship between Litecoin and the ASEAN5 market

has changed significantly. In addition, the dynamic relationship between Bitcoin and the stock

market showed a very high correlation from 2013 to 2015 and then remained nearly stable until

January 2020. Finally, this paper tested the determinants that link cryptocurrencies to financial

market factors consisting of GOLD, CRUDE, FX and INT. Empirical results show that both

CRUDE and FX had an effect, but GOLD and INT did not affect the degree of linking to the stock

market or cryptocurrencies. With respect to recommendations and policy implications,

cryptocurrencies have shown a dynamic relationship with the stock market and have shown

extreme volatility, so the five countries have shown cryptocurrency policies or regularity for

investors or policy makers. Information needs to be created. Investors, on the other hand, need to

look at indicators such as exchange rates and crude oil prices before trading.

Titov, Uandykova, Kalmykova, Prosekov (2021): In this article, we explored the risks and

perspectives of cryptocurrencies in the global financial system. Presented a theoretical aspect of

the cryptocurrency concept, the development stage of the term itself and related technologies, an

analysis of the current digital currency market, and a comparative analysis of existing

cryptocurrencies with data on fiat currencies, assets and competition in the market. rice field.

Based on the results of the survey, we can conclude that it is difficult to define the term

cryptocurrency system due to the inadequate regulatory framework of this sector in most

developed countries. The most accurate explanation for this phenomenon is made possible thanks

to the science of cryptography, which studies methods of encrypting, transferring, and decrypting

information. Therefore, in the 90's of the last century, it was used to create blockchain technology

based on building a chain of interconnected cryptographic data, and its application was found in

the registration of transactions within cryptocurrency systems. I did. Cryptocurrencies are

32
becoming more common now: with the development and expansion of existing and new systems

and platforms, market capitalization has increased aggressively since the fall of 2018, with average

daily trading volume and market capacity. Increased. Based on the analysis, it was found that the

EOS platform can now compete with Visa, one of the leading companies in the field of payment

systems. With a processing speed of 50,000 transactions per second, the EOS platform can handle

most of the remittance needs of the large global market. In our opinion, a promising cryptocurrency

system should include the above characteristics for using digital currencies as the primary payment

method, but it also includes non-currency assets such as: There are: as an element of stability, or

gold for creating conditions that show the issuer's obligations when a digital currency is issued. In

such a system, the publisher's regulatory agency could possibly be a specific supranational large

independent company to ensure the security of the data and the partial confidentiality of network

users. To ensure that the tax and credit mechanism is maintained, smart contracts should be used.

This ensures stable automatic cash circulation between counterparties as it can be adapted to any

organization thanks to the openness of the EOS system code. As a result, the existing

cryptocurrency financial system was evaluated. With the potential for processing speeds of 50,000

transactions per second, the EOS-based cryptocurrency system can meet most remittance needs in

the large global market.using stochastic volatility models. Our results prove that this

cryptocurrency behaves like a stock market index, even though it is traded in the virtual market.

Observing the market, some investors have doubts about this cryptocurrency, but some

considerations justify themselves. Our results will help investors to more diversify their portfolio

by adding this cryptocurrency. This was clearly approved, especially after the "Covid 19" crisis,

where trading volumes in this type of market increased significantly.

Karim, Abdul , Rahman, Aisyah, Kadri, Norlina (2021): This paper focuses on cointegration and

33
supported Granger causality tests, cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin, Dash,

Stella) and ASEAN5 stock markets (Malaysia, Indonesia, Singapore, Thailand, Philippines)

considered market integration between August 2015 and October 2019. The results show that no

cointegration was found between cryptocurrencies, showing the potential long-term benefits of

portfolio diversification and hedging strategies. In addition, we have found evidence that the

opportunities for portfolio diversification that exist in the short term are enormous. Bitcoin's

influential role in other cryptocurrencies has been significantly reduced. This may be because other

cryptocurrencies are constantly competing with the market value of Bitcoin and are also popular

in the cryptocurrency market. In addition, Ethereum means the fact that it has the lowest correlation

with other cryptocurrencies and may be the best cryptocurrency for hedging asset classes and safe

haven products. In contrast, evidence of cointegration between cryptocurrencies and the ASEAN5

stock market was found. Although the market is co-integrated in the long run, the Granger

causality results can conclude that in the short run there is ample opportunity to diversify the

portfolio between cryptocurrencies and the ASEAN5 stock market. .. However, with the right

investment strategy and structure, investors and fund managers can benefit from portfolio

diversification and maximize the risk-reward trade-off. Cryptocurrencies have expanded the

variety of investment and risk management strategies available to investors.In addition, evidence

of the cointegration of cryptocurrencies and the ASEAN5 stock market shows that each variable

contains information about common probabilistic trends, so investors use information about other

variable prices. You can also check the profit of arbitrage. In addition, the results of this study

could impact crypto investors, international investors, and fund managers seeking to diversify their

investments in cryptocurrencies and the region. In the context of the ASEAN5 stock market,

evidence of joint integration between stock markets is also important in formulating monetary

34
policy for multinational companies and macroeconomic policy for the ASEAN stock market. This

study focuses only on six cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin, Stella, Dash)

and the ASEAN5 stock market. In addition, this study relies on cointegration and Granger causality

tests. Future research may compare other cryptocurrencies, other financial assets and commodities.

In addition, the literature on this subject can be enriched by examining the factors that lead to

common movements and other examples of countries with different regions and trade zones. In

addition, we recommend future research to investigate the potential effects of macroeconomic

variables on this market integration and threshold effects of global factors such as TED spreads,

VIX, and U.S. economic policy uncertainty (EPU).

35
1.4 RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the set of methods and procedures used in collecting and analyzing measures

of the variables specified in the research problem research. The design of a study defines the study

type (descriptive, correlational, semi-experimental, experimental, review, meta-analytic) and

subtype (e.g., descriptive-longitudinal case study), research problem, hypotheses, independent and

dependent variables, experimental design, and, if applicable, data collection methods and a

statistical analysis plan. Research design is the framework that has been created to find answers to

research questions. There are many ways to classify research designs, but sometimes the

distinction is artificial and other times different designs are combined. Nonetheless, the list below

offers a number of useful distinctions between possible research designs. A research design is an

arrangement of conditions or collections.

A research design is a systematic approach that a researcher uses to conduct a scientific study. It

is the overall synchronization of identified components and data resulting in a plausible outcome.

To conclusively come up with an authentic and accurate result, the research design should follow

a strategic methodology, in line with the type of research chosen. To have a better understanding

of which research paper topic, to begin with, it is imperative to first identify the types of research.

1.4.1 TYPES OF RESEARCH DESIGN

1. Exploratory Research

Exploratory research, as the name implies, intends merely to explore the research questions and

does not intend to offer final and conclusive solutions to existing problems. This type of research

is usually conducted to study a problem that has not been clearly defined yet.

36
2. Descriptive Research

Descriptive research can be explained as a statement of affairs as they are at present with the

researcher having no control over variable. Moreover, “descriptive studies may be characterised

as simply the attempt to determine, describe or identify what is, while analytical research attempts

to establish why it is that way or how it came to be”.

1.4.2 DATA COLLECTION

Data collection is the process of gathering and measuring information on variables of interest, in

an established systematic fashion that enables one to answer stated research questions, test

hypotheses, and evaluate outcomes. A formal data collection process is necessary as it ensures that

the data gathered are both defined and accurate and that subsequent decisions based on arguments

embodied in the findings are valid. The process provides both a baseline from which to measure

and in certain cases an indication of what to improve.

1.4.3 METHODS OF DATA COLLECTION

There are two types of data collection methods namely primary data collection and secondary data

collection.

 Primary data

Primary Data is the data which is originally collected by an investigator or agency for the first

time for specific purpose. The source from which the primary data is collected is called the

primary source. Such data is original in character as it is collected for the first time. It is first-

hand information. Primary Data once collected and published becomes Secondary Data. There

37
 are many methods to collect primary data and the main methods include:

 Questionnaires

 Interviews

 Focus group Interviews

 Observation

 Secondary data

The data which is not directly collected but rather obtained from the published or unpublished

sources is known as Secondary Data. It is also known as Second Hand Data. These are not

original data since the enumerators or investigators themselves do not collect these data. They

simply make use of the data collected by the others. Common sources of secondary data include:

 Large surveys

 Internet

 Journals

 Books

 News papers

1.4.4 TYPE OF DATA COLLECTED

RESEARCH PROCESS IN THIS PROJECT/STUDY

 RESEARCH TYPE: Descriptive Research Design

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A Survey was done with a sample population of 100 respondents to analyze the customer

preference while investing in Cryptocurrency and Stocks. Respondents included corporate people

from diverse fields and general public. They were asked to fill a questionnaire that mainly focused

on finding the key determining factors that help a consumer while investing. Various research

tools for the Analysis was used that includes Bar graphs, Pie charts, Ms excel etc. The final

analysis was presented in the form of the Pie chart and Bar graph with the interpretation that was

observed after analysing the responses from the respondents.

39
1.5 LIMITATIONS

Every attempt will be taken to obtain the error free and meaningful result but as nothing in this

world is 100% perfect, I believe that there will still the chance for error on account of following

limitation –

Limitations faced while working on this research paper are as follows:

(a). Restrictions due to COVID-19: The COVID-19 virus led to major limitations such as

restriction of movement, effect on mental health etc. Resources became limited during this period.

(b). Location Constraint: Due to the pandemic situation in the country, mobility to location was

not possible, thus, work from home was adopted.

(c). Monotony: Working from home, during a pandemic created a lot of monotony in the routine

which sometimes led to inefficiency in work.

(d). Limited Access to Information: As mentioned above due to the pandemic it was challenging

to travel, thus, acquiring information became restrictive.

40
CHAPTER-2

SUSTIANABLE

DEVELOPMENT

GOALS

41
2.1 Introduction

The 2030 agenda for sustainable development adopted by the Member States of All of the United

Nations in 2015 provides a general blueprint for people and planets peace and prosperity. In his

heart, 17 sustainable development goals (SDG), an emergency telephone from all countries

developed and developed in a global partnership, are urgent calls. They reduce all things while the

end of the strategy and other consumption improving health and education is being climate change,

and while our sea and forest conservation are taking place We have achieved the end of poverty

and other consumption to do. SDGS, June 1992, June 1992, June 1992, June 1992, Brazil, 178

countries, including agenda 21, the UN Economic Social Issues . He also adopted a

comprehensive plan to build a global partnership for sustainable development, improving human

life and protected the environment. In September 2000, the Millennium Summit in the Millennium

Summit in the Millennium Summit in the Millennium Summit in the Millennium Summit in New

York. The Summit brought about 8 Millennium Development Goals (MDGs) to reduce extreme

poverty by 2015. The Johannesburg declaration on sustainable development and implementation

plans adopted in the World Summit of South Africa in South Africa in South Africa has

reconfirmed that the issues of poverty and the environment and parliament and the agenda 21 and

the challenges of the Millennium declaration. Emphasis on multilateral partnerships. In June

2012's Sustainable Development (RIO + 20) UN Conference, in June 2012, member state has

decided to start the process for developing the process development process from SDG I covered

the future. MDGS builds a wide variety of policy forums of UN for sustainable development. The

results of RIO + 20 also contain other measures to carry out sustainable development, including

future development programs of development finance, and future development programs such as

Kojima. In 2013, the general assembly introduced a 30 square-open working group to develop

42
SDGS proposals. In January 2015, the General Assembly began with the Negotiation Process on

the development of POST 2015 Development Agenda. This process led to the subsequent adoption

of the 2030 Agenda for Sustainable Development, centered on the 17 SDGs, at the United Nations

Sustainable Development Summit in September 2015. 2015 was a crucial year for multilateralism

and international governance, with the adoption of several key goals. : Sendai Framework for

Disaster Risk Reduction (March 2015). Addis Ababa Agenda for Actions on Financing for

Development (July 2015). Transforming Our World: The 2030 Agenda for Sustainable

Development with 17 SDGs was adopted at the United Nations Sustainable Development Summit

in New York in September 2015. Paris Agreement (December 2015). The annual High-Level

Political Forum on Sustainable Development is currently functioning as a central United Nations

platform for follow-up and review of the SDGs.

2.2 Sustainable Development Goals(SDG’s) Explaination

Goal 1: No Poverty

High birth rates can plunge countries into poverty. The World Bank has warned that extreme

poverty will not decrease in 2021 as population growth eclipses economic growth in the poorest

countries. Large families and poverty often go hand in hand. People living in disadvantaged areas

are generally not given the right to choose the number of children they have and in some cases

feel the need to have many children to be able to support themselves in old age. When people are

poor and have many children, they cannot invest enough for each child, which often leads to

children not going to school and girls to get married. Women are also less likely to be financially

independent when they have more dependent children at home. Ensuring that everyone has the

right to choose small families is essential to poverty alleviation.

43
Goal 2: No Benefits

Feeding the world without destroying nature will become increasingly difficult and ultimately

impossible with sustained population growth. According to the World Resources Institute, the

caloric needs of a population of 10 billion are 56% higher than current agricultural output.

Agriculture has been and is one of the major causes of environmental degradation, and continuing

to convert land for agricultural purposes will have devastating consequences for our biodiversity

and climate. . A landmark 2019 report from the EATlancet Commission states that “healthy diets

from sustainable food systems are viable for up to 10 billion people, but are increasingly unlikely

to exceed the population threshold.” this number”. Our population is expected to exceed 10 billion

in the second half of this century. When population growth outpaces development, past gains are

quickly reversed and the number of hungry people has risen again over the past three years.

Experts have warned that vulnerable areas like the Sahel face catastrophe unless action is taken

to reduce fertility rates.

Goal 3: Health and Fun

Insufficient funding for health systems can cause them to falter under pressure from a growing

population. Lack of access to quality reproductive health care, including modern contraceptives

and medically safe abortions, leads to higher rates of unwanted pregnancy and maternal

mortality. highly preventable. Worldwide, nearly half of all pregnancies are unintended and more

than 800 women die every day from pregnancy-related complications. Due to population growth,

the number of women who are absolutely unresponsive to contraception continues to increase.

Very high population densities facilitate disease transmission and harm public health, especially

44
in areas where health services are already oversupplied. Investing in quality health care for all,

including easy access to family planning, helps slow population growth and improve lives.

Goal 4: Quality Education

Increased investment in quality education is essential to reducing poverty and ending population

growth. Due to gender inequality, girls are marginally affected by lack of access to education –

still one in four girls do not attend secondary school and in sub-Saharan Africa the number of

girls not attending school High schools have grown by 7 million since 2007 due to the region's

population growth. As a general rule, the more years a woman spends studying, the smaller her

family size becomes. As women are able to delay childbearing and have fewer children, it also

allows them to pursue educational opportunities, such as higher degrees, which would be difficult

or impossible for many dependents. .

Goal 5: Gender Equality

Empowering women and girls to take control of their bodies and lives is crucial to solving our

greatest social and environmental crises. Gender inequality is one of the main causes of high birth

rates. No country has ever achieved complete equality, and gender injustices and crimes continue

to be pervasive and pervasive. According to the UN, ending gender-based violence, harmful

practices (including early marriage and female genital mutilation), preventable maternal deaths

and the need for planning Unmet family facilitation is reasonable and within reach, but there is

still a serious lack of funding. Meanwhile, the number of women and girls who are subjected to

harmful practices is increasing due to the slow development process and population growth.

Goal 6: Clean Water and Sanitization

45
The combination of climate change and population growth is fueling a global water crisis. As

our numbers increase, aquifers are exposed, pollution increases, and our ability to safely dispose

of wastewater is increasingly compromised. Currently, 2.2 billion people around the world do

not have access to safe drinking water and 4.2 billion people do not have access to safe sanitation

services. In the UK, over-exploitation and drought could lead to severe water shortages by mid-

century. The UK population is expected to reach 73 million by 2041, with the fastest growth

occurring in areas already most water stressed. Experts estimate that by 2050, 5 billion people -

more than half of the world's population - will live in water-stressed areas.

Goal 7: Clean and Used Energy

The number of people using dirty fuels continues to grow due to population growth and slow

progress in renewable energy deployment. Global energy demand is expected to increase by 50%

over the next 30 years due to population growth and economic development. High-income

countries must lead the way in the transition to clean fuels, and help low-income countries do the

same. Stopping population growth would make the global transition to clean and affordable

energy much more possible.

Goal 8: Decent Works and Economic Growth

A large number of young dependents make economic prosperity almost unattainable and is also

a source of social unrest. "The large population puts a lot of pressure on our economy. As a

country, we have made great strides over the years, but the impact is not reflected in the economy.

our achievements because those achievements have been dissipated by the growth demographic."

- Goodall Gondwe, Minister of Finance, Malawi, 2017

46
In high-income countries, the pursuit of economic growth is in direct conflict with other SDGs,

particularly with regard to the environmental impact of Growth Infinite population and economy

can never be sustainable on a finite planet As a global community, we must strive for a healthy

and happy environment for all, not is endless development.

Goal 9: Industrial, Innovation and Infrastructure

The larger the population, the harder it is to provide everyone with access to modern infrastructure

and technology, and the more we destroy nature in the process. Human conversion of land to

infrastructure is a major cause of biodiversity loss, and construction is a major source of

greenhouse gases. For example, the widening of roads in South Asia is increasingly threatening

the survival of tigers. Today there are only 4,000 tigers left in the wild, and 40% of the tiger's

habitat has been lost in the past 15 years alone. In the UK, the controversial HS2 rail network is

said to be threatening more than 30 ancient forests.

Goal 10: Reduce Disequality

Huge disparities exist between the rich world and the Global South, and within the countries

themselves. A more equitable global system, in which resources are distributed more equitably, is

needed. While the number of new consumers must be limited everywhere, the choices made by a

small family have a particularly strong impact on the wealthiest of us.

Goal 11: Sustainable Cities And Communities

More than half of the world's population currently lives in urban areas. By 2050, this proportion

will reach 68%. Rapid urban population growth may outpace the delivery of infrastructure such as

47
clean water, sanitation, health care, employment and education. According to WWF, one of the

main causes of habitat loss is land for human habitation, with urban areas having doubled since

1992. Access to green space is important for physical health. physically and mentally, but natural

and semi-natural areas increasingly fall victim to housing. request. In the United Kingdom,

population growth is expected to result in a 7.6% reduction in available green space per person by

2040.

Goal 12: Responsible Consumption and Production

According to the United Nations, the material per capita ratio in high-income countries is 60%

higher than in upper-middle-income countries and 13 times higher than in low-income countries.

Responsible consumption and production of food and goods must go hand in hand with measures

to stem the growth of our population. The very high number of people escaping poverty is the main

reason why resource use per person in 2050 is projected to be 71% higher than today. We are

using resources 1.75 times faster than they can regenerate unless things change we will need three

Earths to meet our needs by 2050.

Goal 13 : Climate Action

Unsustainable consumption patterns in high-income countries are a major driver of the climate

crisis, but every extra person on our planet produces more emissions. Project Drawdown's

comprehensive review of available climate solutions shows that slowing population growth

through a combination of girls' education and family planning would be one of the most effective.

to reduce CO2 in the atmosphere by 2050. Scientists' warning of a 2019 climate emergency,

48
endorsed by more than 11,000 scientists, calls for ending population growth and ultimately

reversing it, among climate change actions to prevent the worst effects of climate change.

Goal 14: Live out of Water

Pollution (plastics and running water), overfishing, coral bleaching and destruction of coastal

ecosystems are all exacerbated by population growth. Two-thirds of marine areas have been

destroyed by human activity and one-third of sharks and rays and one-third of reef corals are

threatened with extinction. The fight against the loss of life underwater must include a commitment

to reducing population growth and rampant consumption. Family planning, education and

women's empowerment can also enable more women to participate in marine resource

management; improve food security and mitigate the effects of climate change.

Goal 15: Life on Earth

Human population growth is one of the main causes of biodiversity loss. According to WWF, we

have lost 60% of our total vertebrate populations since 1970. In that time, our population has more

than doubled. A landmark United Nations review in 2019 clearly noted that human population

growth is an indirect cause of biodiversity loss and stated: "it is not possible to achieve the changes

to the direct causes of natural degradation without a transformer simultaneously changing the

indirect motors". To be truly effective in the long term, conservation efforts must incorporate

population solutions.

Goal 16: Peace, Equality, and Powerful Organizations

49
In the absence of prosperity and strong institutions, population growth contributes to conflict over

resource scarcity. Educating and empowering women and communities, including ensuring access

to voluntary family planning services, can help support peace and stability goals by strengthening

foundations of stability. And where families can choose how and when to have children, women

can have more opportunities to participate in civil society and build peace.

Goal 17: Cooperation for Goals

Cross-industry partnerships recognize the important link between social and environmental issues

as key to a better future. COVID19 has presented unprecedented challenges, reversing decades of

development and triggering a deep global recession. There has never been a more important time

to strengthen the partnership and secure the next 10 years of cooperation for sustainable

development. The international community must promote recognition of the urgent need to end

human population growth as soon as ethically possible and promote increased investment in

empowering solutions.

50
2.3 SDG Selected for the Project

Goal 8: Decent Works and Economic Growth

When people are investing it means they are earning enough to cover their expenses and invest

from their extra saved income. More the people invest means more number of people in the

economy are able to earn more than their expenses. Which shows more economic growth. When

people invest in stocks or crypto they get returns which increases their income and hence results

in better quality of living which motivates them to work more and results in decent work. These

all will lead to economic growth.

Goal 9: Industrial, Innovation and Infrastructure

Since the past few years people are investing more. Be it in Stocks, asserts or Crypto. Crypto is a

latest trend in the market which is a new form of innovation for investing. As the financial

investment industry will grow, it will require more infrastructure for development. Platforms will

be required for taking their transactional place which will result in innovation. Same goes for the

goes as the industry will go up and develop the stocks of the various industries will tend to rise

and it will require more infrastructure and innovation as it will be ascending that time.

51
 Chapter-3

Analysis&

Interpretation Of

Data

52
A Survey was done with a sample population of 100 respondents a to customer preference

while investing in Cryptocurrency and Stocks. Respondents included corporate people from

diverse fields and general public. They were asked to fill a questionnaire that mainly focused

on finding the key determining factors that help a consumer while investing. Various research

tools for the Analysis was used that includes Bar graphs, Pie charts, Ms excel etc. The final

analysis was presented in the form of the Pie chart and Bar graph with the interpretation that

was observed after analyzing the responses from the respondents.

53
1. When did you start investing in Cryptocurrency/Stocks?

Figure No -3.1

INTERPRETATION

According to this Pie chart 34% respondents haven’t invested in Cryptocurrency as well as the

Stocks, while 28% are investing from last month, 20% from last year and 18% longer then the

time period mentioned in the question. This shows that the majority of the respondents are

investing while a minority of people are not investing.

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2. In which type of instrument have/are you invested?

Figure No -3.2

INTERPRETATION

According to this Pie chart 38% respondents are investing in the Stocks while 32% in other

mediums, 16% in crypto and 14% in Equity. This shows that people are still referring to invest in

stocks rather than crypto despite it’s a ongoing trend and currently popular in market for

investing.

55
3. What type of investment strategy you generally use to invest.

Figure No -3.3

INTERPRETATION

According to this Pie Chart 30% people are using the value investing strategy to invest while 28%

are preferring to use Growth investing, 24% are using some other strategies and 18% are using

passive and Active strategy, This shows that the respondents are more preferring to invest by the

value investing strategy than the other strategies available for them.

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4. Which factors do you consider before investing in Cryptocurrency.

Figure No -3.4

INTERPRETATION

According to this pie chart 38% respondents consider the Past performance of the Crypto before

investing while 22% consider the Risk tolerance and analytics of currency, 18% consider other

factors. This shows that majority of people consider only Past performance of the coin before

investing and rest depends on other factors.

57
5.Which factors do you consider before investing in Stocks.

Figure No -3.5

INTERPRETATION

According to this Pie chart 34% respondents consider Analytics of stock before investing in Stocks

while 30% consider Past performance and 18% consider Risk tolerance and other factors.This

shows majority of people considers only Analytics of stocks and only minority considers other

factors.

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 6.What are the benefits of investing in Cryptocurrency?

Figure No -3.6

INTERPRETATION

]According to this Pie chart 34% consider Higher returns of Crypto as the benefit of investing in

it while 32% consider Easy transactions as the benefit, 26% consider other factors and 8%

considers security of investing. This shoes majority of people invest in Cryptocurrency because of

the higher returns from it and others invest because of the other factors of benefits of it.

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7.What are the benefits of investing in Stocks ?

Figure No -3.7

INTERPRETATION

According to this Pie chart 34% respondents considers Easy transactions as a benefit of investing

in Stock while 24% consider Higher returns . 22% consider security when investing in it and 24%

considers other factors. This clearly shows that the people invests in the stocks because of the easy

method of investing in it and making transactions and rest considers other factors.

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8.What are the risks of investing in Cryptocurrency?

Figure No -3.8

INTERPRETATION

According to this Pie chart 34% respondents consider Fluctuation in prices as a risk of investing

in Cryptocurrency while 24% considers Inflation risk. 22% sees Legal issues and 20% considers

other factors. This shows Majority of people have risk of Fluctuation of prices as the risk and rest

have other factors of risks involved in it.

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9.What are the risks of investing in Stocks?

Figure No -3.9

INTERPRETATION

According to this Pie chart 34% respondents consider Fluctuation in prices as a risk of investing

in Cryptocurrency while 34% considers Inflation risk. 12% sees Legal issues and 20% considers

other factors. This shows Majority of people have risk of Fluctuation of prices as the risk and rest

have other factors of risks involved in it.

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10.What is your current investment objective.

Figure No -3.10

INTERPRETATION

According to this Pie chart 40% respondents have day to day returns as a objective investing

while 24% have other objectives. 22% have Short term goals and 14% considers long term

goals. This shows Majority of people have day to day returns as their objective and rest have

other objectives.

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11. What is the current Marketing situation of Cryptocurrency for investment

purpose.

Figure No -3.11

INTERPRETATION

According to this Pie chart 60% respondents cannot say anything about the current market situation

of the Crypto while 24% are saying that it is unfavourable right now and 16% are saying it is

Favourable right now. This clarifies that it’s not the right time for now to invest in Cryptocurrency.

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12.What is the current Marketing situation of Stocks for investment purpose.

Figure No -3.12

INTERPRETATION

According to this Pie chart 46% respondents cannot say anything about the current market situation

of the Stocks while 30% are saying that it is unfavourable right now and 24% are saying it is

Favourable right now. This clarifies that it’s not the right time for now to invest in Stocks.

65
13.Rate the following on the basis of their advantage of availability while investing

in Cryptocurrency or Stocks.

Figure No -3.13

INTERPRETATION

A comparison between the some aspects of the crypto and stock was done by using rating

method and according to the analytics of the Graph Majority of respondents consider Speed of

transaction, Central authority, Transaction fees, Inflation and International acceptance mostly as

the medium advantage while investing in Cryptocurrency or stocks and minority of respondents

considers them as low and high advantage.

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 CHAPTER-4

CONCLUSION

AND

RECOMMENDATIO

NS

67
4.1 Conclusion

The study was conducted of the risks and prospects of Cryptocurrencies and Stocks for the

consumers and their preferences. It was studied the theoretical aspects of the concept of

cryptocurrency, the stages of development of the term itself and the technologies associated with

it, the analysis of the current market of digital currencies, a comparative analysis of existing

cryptocurrencies with fiat money, assets, and presents data on competition in the market and of

the Stocks.

Based on the results of the study, it can be concluded that it is difficult to define the consumer

preference of cryptocurrency and stocks due to the insufficient regulatory framework for this sector

in most developed countries. Thus, it was used in the 90s of the last century to create a blockchain

technology based on the construction of a chain of interconnected encrypted data, which found its

application in registering transactions within cryptocurrency systems.

Now cryptocurrencies are becoming more common: Develop and expand existing and new

systems and platforms, after the fall of 2018 is actively growing the market capitalization increased

average daily trading volume and increased market capacity.

Based on the analysis, it was found that the EOS platform is currently able to compete with one of

the leading companies in the field of payment systems is Visa. With a processing speed of 50,000

transactions per second. In our opinion, a promising cryptocurrency system should include the

above features for using the digital currency as the main means of payment, but use an asset other

than the currency, such as gold, as a stability element, or create conditions for the Issuer’s

obligations to appear when issuing the digital currency.

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4.2 Recommendations

After the Research conducted some recommendations that you should consider there factors while

investing in Cryptocurrency and Stocks are.

Time horizon
Time horizon when you need the money from an investment is a key criteria. The shorter your

timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an

asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in

risky assets such as stocks need at least three years to ride out volatility.

Stocks

 Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are

more volatile than a portfolio of stocks, which tends to benefit from diversification.

 Stocks are better suited to investors who can leave their money alone and don’t need to access

it. Generally, the longer you can leave it invested, the better.

 Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate

much more than value stocks or dividend stocks.

 Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend

stocks) as they need to tap their money, such as when they approach retirement.

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Cryptocurrency

 While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021,

Bitcoin lost more than half its value in a few months and later gained 100 percent. Such

volatility makes crypto unsuited for short-term investors.

 Crypto is better suited to traders who can leave their money tied up and wait for it to recover.

Think years rather than weeks.

Portfolio management

As you’re thinking about constructing your portfolio, you don’t have to make an either or choice

between cryptocurrency and stocks or other kinds of asset such as bonds or funds, either. It’s all

about weighting your portfolio in a way that fits your risk and time horizon.

Cryptocurrency

 Given its inherent risks, cryptocurrency works better with a small allocation in your overall

portfolio. Think 5 percent or less.

 Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off.

Also, limiting to a small allocation protects you against a complete loss if crypto goes nowhere.

 If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your

money to stocks to lower your portfolio’s overall risk.

Stocks

 Given stocks’ strong long-term record, a diversified collection of stocks should make up the

majority of your portfolio, especially if you have decades until you need to tap it.

70
 If you’re investing in individual stocks, you’ll need to research your stocks carefully to

achieve good returns.

 If you’re investing in funds, you can buy a broadly diversified fund such as an S&P 500 index

fund without significant research and enjoy the potential for high returns.

Bottom line

Some cryptocurrencies have soared in price since being introduced over the past few years, but

investors need to understand what they’re investing in, instead of just rushing in because other

traders are. If you decide to take a stake in crypto, consider how it fits with your own risk

tolerance and financial needs. Investors can earn good returns without investing in

cryptocurrency, and some investors, including legends such as Warren Buffett, won’t touch

cryptocurrency.

71
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Annexures

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