Bitcoin as a Safe-Haven Asset and a Medium of Exchange

【Author】 Yan, Yu; Lei, Yiming; Wang, Yiming

【Source】AXIOMS

【影响因子】1.824

【Abstract】A monetary model is established to introduce that bitcoin does have the characteristics of a price rise when the economic situation is terrible under high risk aversion. At this time, Bitcoin has the property of a safe-haven asset, and when economic conditions are good and risk aversion is low, Bitcoin has a pro-cyclical nature. At this time, Bitcoin has a stronger property as a medium of exchange. To show the movement law of the bitcoin price, we make a logarithmic linearization of the model and simulation, and the result is consistent with the theoretical analysis. To better understand the role of bitcoin in the real economy, several standard portfolio models are used to measure the similarities and differences between gold and bitcoin in an investment portfolio. After the outbreak of COVID-19, bitcoin has shown stronger safe-haven asset properties.

【Keywords】cryptocurrency; COVID-19; hedging asset; monetary value; China U.S. stock market

【发表时间】2022 AUG

【收录时间】2022-09-06

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-数字货币