Hedging capabilities of bitcoin is it the virtual gold?

Arbeitspapier

This paper sets out to explore the hedging capabilities of bitcoin by applying the asymmetric GARCH methodology used in investigation of gold. The results show that bitcoin can clearly be used as a hedge against stocks in the Financial Times Stock Exchange Index. Additionally bitcoin can be used as a hedge against the American dollar in the short-term. Bitcoin thereby possess some of the same hedging abilities as gold and can be included in the variety of tools available to market analysts to hedge market specific risk.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UCD Centre for Economic Research Working Paper Series ; No. WP15/21

Classification and Topics

• Classification: Wirtschaft
• Subject: Bitcoin ; Risk Management ; Gold ; Hedging

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dyhrberg, Anne Haubo
• Event: Veröffentlichung
• (who): University College Dublin, UCD School of Economics
• (where): Dublin
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129339
• Last update: 10.03.2025, 11:41 AM CET