By CCN: Bitcoin is not a powerful hedge towards an unsure economic system or unstable stock marketplace — regardless of what crypto evangelists vehemently insist. That’s the conclusion of a file that has just been posted within the Annals of Operations Research.
The paper is entitled “Market Risk and Bitcoin Returns,” It was authored by Dimitrios Koutmos, an assistant finance professor at Worcester Polytechnic Institute in Massachusetts.
Report Touts Itself as a ‘Cautionary Note’
Koutmos says he sounds the alarm for buyers, calling his report a “cautionary word” for the irrationally exuberant cryptocurrency superfan. He says his research shows that the bitcoin charge isn’t as independent of outside influences, which include the overall economy, stock marketplace moves, and geopolitical uncertainty, as its proponents claim.
So as the worldwide financial system slows down, buying crypto as a hedge towards a recession is not recommended, Koutmos says.
By CCN: Bitcoin is not a powerful hedge towards an uncertain economy or risky stock marketplace — notwithstanding what crypto evangelists insist. That’s the belief of a file that is posted inside the Annals of Operations Research.
The paper is entitled “Market Risk and Bitcoin Returns,” It was authored by Dimitrios Koutmos, an assistant finance professor at Worcester Polytechnic Institute in Massachusetts.
Report Touts Itself as a ‘Cautionary Note’
Koutmos says he sounds the alarm for investors, calling his record a “cautionary word” for the irrationally exuberant cryptocurrency superfan. His research suggests that the bitcoin charge isn’t always as independent of external impacts, such as the general economic system, inventory marketplace actions, and geopolitical uncertainty, as its proponents declare. So as the worldwide financial system slows down, shopping for crypto as a hedge against a recession is not recommended, Koutmos says.
