The proposed project is on digital currency (e.g., Bitcoin). It contraststheoretical and empirical evaluation of digital currencies as asset class.The empirical data analysis will deal with real world data and datagenerated in economic experiments. Thus the risk and return characteristicsof this asset class will be uncovered. The project also tries to shed lighton the question if digital currencies have value as stabilizing factors inthe economy. This question and the related question of regulatory measuresin light of the rise of digital currencies will be discussed in the contextof the European monetary union.