Which will serve better as a hedge or diversifier Gold or Bitcoin?

Hossain, Moazzem; Ismail, Mohd Tahir; Akter, Sharmin; Hossain, Mohammad Raquibul

doi:10.1109/dasa51403.2020.9317116

Cited by 1 publication

(1 citation statement)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Nevertheless, USD-pegged stablecoins perform better than gold-pegged stablecoins in extreme risk reductions (Wang et al 2020). Thus, both gold and Bitcoin have attractive features of risk management and portfolio risk (Hossain et al 2020) and their role in the market is yet to be revisited (Jiang et al 2021).…”

Section: Bitcoin and Traditional Assets As A Hedge Toolmentioning

confidence: 99%

Bitcoin as an Investment and Hedge Alternative. A DCC MGARCH Model Analysis

Rudolf¹,

Zein

Lansdowne³

2021

Risks

View full text Add to dashboard Cite

Volatility and investor sentiment have been factors for the slow adoption rate of Bitcoin (BTC) that was first recognized in 2008 as a potential store of value, investment vehicle and a hedge alternative to gold during a recession. The purpose of this applied mathematics study will use a multivariate DCC GARCH model. Bitcoin holds its ground in volatility. This study examines Bitcoin as an investment and hedge alternative to gold as well as the major stock index. To perform the research to explore the viability of Bitcoin as an investment and hedge alternative to gold, the authors conducted a DCC GARCH model analysis. The findings of this research paper confirm Bitcoin’s cyclical performance between volatility and adoption. The findings give a strong ground for Bitcoin as the new digital currency, store of value, medium of exchange, and a unit of account and incentivize further research by theorists, scholars and examiners. The significance of this applied mathematics research and analysis will allow an unstoppable, incorruptible, and uncontrollable store of value, and investment vehicle, without governmental or institutional intervention. This study contributes by comparing and contrasting volatility stability based on the return levels of each Bitcoin on major indexes traded with BTC (based on fiat currencies) and gold.

show abstract

Section: Bitcoin and Traditional Assets As A Hedge Toolmentioning

confidence: 99%