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dc.contributor.authorStensås, Anders
dc.contributor.authorNygaard, Magnus Frostholm
dc.contributor.authorKyaw, Khine
dc.contributor.authorTreepongkaruna, Sirimon
dc.identifier.citationCogent Economics & Finance. 2019, 7 (1), 1-17.nb_NO
dc.description.abstractThis paper investigates whether Bitcoin acts as a diversifier, hedge or safe haven tool for investors in major developed and developing markets, as well as for commodities. This paper employs the GARCH Dynamic Conditional Correlation (DCC) model. The sample covers seven developed and six developing countries, five regional indices and 10 commodity series. The results show that Bitcoin acts as a hedge for investors in most of the developing countries such as Brazil, Russia, India and South Korea, but only as a diversifier for investors in developed countries and for commodities. Moreover, Bitcoin acts as a diversifier for all the 10 commodities studied here. During the US election in 2016, Brexit referendum in 2016, and the burst of Chinese market bubble in 2015, Bitcoin acted as a safe haven asset for both the US and non-US investors. Understanding the role of Bitcoin is important for financial market participants who seek protection against market turmoil and downward movements. Furthermore, our findings would be of interests to regulators and governments to engage in more discussion of the role of Bitcoin in financial markets. This paper contributes to the ongoing debate on the usefulness of Bitcoin for investments. Furthermore, it distinguishes the benefits of Bitcoin as a diversifier, hedge and safe haven to investors in the developed versus developing markets.nb_NO
dc.publisherCogent OAnb_NO
dc.rightsNavngivelse 4.0 Internasjonal*
dc.titleCan Bitcoin be a diversifier, hedge or safe haven tool?nb_NO
dc.typeJournal articlenb_NO
dc.typePeer reviewednb_NO
dc.source.journalCogent Economics & Financenb_NO
dc.description.localcode© 2019 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.nb_NO
cristin.unitnameNTNU Handelshøyskolen

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Navngivelse 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Navngivelse 4.0 Internasjonal