Josh Varty, a co-op student from the University of Waterloo, through the entrepreneurial work term program with the Conrad Business, Entrepreneurship and Technology (CBET) Centre, founded a company with the goal of developing an automated Bitcoin trading agent. He discovered an unexploited niche market in the form of the e-currency Bitcoin by analyzing the economic landscape with the technological versatility of the engineering discipline. Josh intends to develop autonomous trading software to capitalize on his opportunity. However, the discovered market opportunity is underdeveloped, with no prior analytics to provide insight into possible market instability or investment strategy. To gauge the viability of any possible investments and reduce risk, ample investigation of Bitcoin and associated markets is required.
The teaching objectives of this case study are the introduction to cryptocurrency, understanding of some basic economic principles, their impact on real markets and a development of a viability analysis for market opportunities.