Hedging Capabilities of Bitcoin. Is it the virtual gold?

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Title: Hedging Capabilities of Bitcoin. Is it the virtual gold?
Authors: Dyhrberg, Anne Haubo
Permanent link: http://hdl.handle.net/10197/7169
Date: 7-Oct-2015
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
Copyright (published version): 2015 the author
Keywords: BitcoinRisk ManagementGoldHedging
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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