Bitcoin, the most well-known cryptocurrency, presently has the highest market capitalization and is considered a model cryptocurrency. However, there is no agreement on Bitcoin's nature.

Our article's goal is to assess if Bitcoin constitutes a new asset class. Three important asset class characteristics are discussed: Investability, Use case, and risk-reward profile. We believe that Bitcoin can be seen as a separate alternative investment and as an asset class. There are substantial investment possibilities with unique use cases and using Sharpe Ratios, it is demonstrated that Bitcoin outperforms most asset classes in terms of risk-adjusted returns.

Our study aims to offer a normative inquiry into the asset class character of Bitcoin; as a result, the goal is not to reach positivist generalizable conclusions. Other than Bitcoin, this article does not cover other cryptocurrencies.

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