Bitcoin as a safe haven: Is it even worth considering?
By L. Smales. Finance Research Letters, 2019
348 citations recorded by the source corpus.
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.
Subfields: Economics and Econometrics, Information Systems
View Paper: https://www.semanticscholar.org/paper/6ecdf555d586ca43a9f903ebf5b04ac9dff71727
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Citations in the corpus
- Are Bitcoin and Ethereum safe-havens for stocks during the COVID-19 pandemic? (2020, neutral): “We are mindful that incorporating coins into a portfolio may not be easy due to the high transaction cost and illiquidity (Smales, 2019).”
- Searching for safe-haven assets during the COVID-19 pandemic (2020, neutral): “Smales (2019) suggests that bitcoin should not even be considered as a potential safe asset.”
- A crypto safe haven against Bitcoin (2020, result): “Similar results are observed more recently by Corbet, Lucey, Peat, and Vigne (2018) and Smales (2019).”
- How stable are stablecoins? (2021, neutral): “More recent studies that mention or analyze this issue are Harvey (2014), Baur, Hong, and Lee (2018), Corbet et al. (2018), Corbet et al. (2019), Smales (2019) and Shen, Urquhart, and Wang (2020) among others.”
- Safe haven or risky hazard? Bitcoin during the Covid-19 bear market (2020, positive): “3 In recent years, the growing popularity of cryptocurrencies has inspired numerous studies of their diversification, hedging and safe haven properties (Urquhart and Zhang, 2019; Smales, 2019; Shahzad et al., 2019; Kliber et al., 2019; Guesmi et al., 2019; Aysan et al., 2019; Corbet et al., 2018b; B”