Abstract
Research in cryptofinance has continued to consider whether Bitcoin possesses a safe haven property as traditionally defined by its correlation with other assets during times of market stress. However, this neglects other attributes of assets that are important to investors during periods of crisis. Bitcoin is more volatile, less liquid, and costlier to transact (in terms of time and fees) than other assets (including gold - the traditional safe haven) even in normal market conditions. Until the market matures, it is therefore unlikely to be worthwhile considering Bitcoin as a safe haven.
| Language | English |
|---|---|
| Journal | Finance Research Letters |
| DOIs | |
| Publication status | Accepted/In press - 2019 |
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Bitcoin as a safe haven : Is it even worth considering? / Smales, L. A.
In: Finance Research Letters, 2019.Research output: Contribution to journal › Article
TY - JOUR
T1 - Bitcoin as a safe haven
T2 - Finance Research Letters
AU - Smales, L. A.
PY - 2019
Y1 - 2019
N2 - Research in cryptofinance has continued to consider whether Bitcoin possesses a safe haven property as traditionally defined by its correlation with other assets during times of market stress. However, this neglects other attributes of assets that are important to investors during periods of crisis. Bitcoin is more volatile, less liquid, and costlier to transact (in terms of time and fees) than other assets (including gold - the traditional safe haven) even in normal market conditions. Until the market matures, it is therefore unlikely to be worthwhile considering Bitcoin as a safe haven.
AB - Research in cryptofinance has continued to consider whether Bitcoin possesses a safe haven property as traditionally defined by its correlation with other assets during times of market stress. However, this neglects other attributes of assets that are important to investors during periods of crisis. Bitcoin is more volatile, less liquid, and costlier to transact (in terms of time and fees) than other assets (including gold - the traditional safe haven) even in normal market conditions. Until the market matures, it is therefore unlikely to be worthwhile considering Bitcoin as a safe haven.
KW - Bitcoin
KW - Cryptofinance
KW - Gold
KW - Safe-haven
UR - http://www.scopus.com/inward/record.url?scp=85056999751&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2018.11.002
DO - 10.1016/j.frl.2018.11.002
M3 - Article
JO - Finance Research Letters
JF - Finance Research Letters
SN - 1544-6123
ER -