GOLD AND BITCOIN AS SAFE-HAVEN ASSETS

Abstract

Risk and expectations are set to be the essetials factors investors should analyzed when investing. Investors trade stocks and assets hoping to make a profit out on their investment by anticipating future returns. But since future is unpredictable, ups and downs in the stock markets might happend and the known safe-haven assets appear to be used as a hedge during contraction periods. Since the beginning of time, gold has been used as a medium of exchange or a store of value. Even gorvernments and central Banks used to back up their money supply with gold reserves in order to provide trust on their demand. In contrast to a historical store of value like gold, we have Bitcoin, a cryptocurrency that has gained significant relevance in recent years due to its exceptional profitability. Its attributes include features similar to those of gold, such as limited supply and a price that is solely determined by supply and demand. But the focus of these papers is not only to study the behaviour of gold as a safe-have asset, also to compare and study the behaviour of Bitcoin during contraction economic periods, and to get to the conclussion if Bitcoin can be considered a safe-have asset.