Bitcoin as a safe haven: Is it even worth considering?

Research output: Contribution to journalArticle

7 Citations (Scopus)

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.

Original languageEnglish
JournalFinance Research Letters
DOIs
Publication statusAccepted/In press - 2019

Fingerprint

Safe haven
Assets
Neglect
Market conditions
Investors
Fees

Cite this

@article{c318523b4929427dbc89aed76baf0867,
title = "Bitcoin as a safe haven: Is it even worth considering?",
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.",
keywords = "Bitcoin, Cryptofinance, Gold, Safe-haven",
author = "Smales, {L. A.}",
year = "2019",
doi = "10.1016/j.frl.2018.11.002",
language = "English",
journal = "Finance Research Letters",
issn = "1544-6123",
publisher = "Elsevier",

}

Bitcoin as a safe haven : Is it even worth considering? / Smales, L. A.

In: Finance Research Letters, 2019.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Bitcoin as a safe haven

T2 - Is it even worth considering?

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 -