University of Pretoria study: Bitcoin has joined the ranks of safe-haven assets

According to Forbes, the Department of Economics of the University of Pretoria in South Africa recently published a paper "Is Bitcoin the New Digital Gold? Evidence of extreme price fluctuations in financial markets. The paper validates the claim that "Bitcoin has joined the ranks of safe-haven assets." These assets are where investors invest cash as global uncertainty rises as they flee high-risk assets such as stocks. The authors of the paper, Gkillas Konstantinos and Francois Longin, said, "By combining the stock market with Bitcoin, we have found that the correlation between extreme returns has plummeted during periods of market prosperity and collapse, suggesting that during periods of turbulence, Bitcoin can provide Diversity gains people crave. " Therefore, Bitcoin is a hedging tool for dealing with turbulent times.