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Hedging Capabilities of Bitcoin. Is it the virtual gold?
Author(s)
Date Issued
2015-10-07
Date Available
2015-10-20T09:28:56Z
Abstract
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.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Start Page
1
End Page
11
Series
UCD Centre for Economic Research Working Paper Series
WP2015/21
Copyright (Published Version)
2015 the author
Classification
G1
G11
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
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Name
WP15_21.pdf
Size
340.48 KB
Format
Adobe PDF
Checksum (MD5)
666559b3b4388afecbed4bd6ad60e1a3
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