Bitcoin is not an effective hedge against an uncertain economy or volatile stock market — despite what crypto evangelists vehemently insist. That’s the conclusion of a report that was just published in the Annals of Operations Research.
The paper is entitled “Market Risk and Bitcoin Returns,” and it was authored by Dimitrios Koutmos, an assistant finance professor at Worcester Polytechnic Institute in Massachusetts.
Koutmos says he’s sounding the alarm for investors, calling his report a “cautionary note” for the irrationally exuberant cryptocurrency superfan.
He says his research indicates that the bitcoin price is not as independent of external influences such as the general economy, stock market movements, and geopolitical uncertainty as its proponents claim.