Are Gold and Bitcoin a Safe Haven for European Indices?

Abstract

Numerous turbulent events in the recent past have raised the issue of an asset that could play the role of safe haven. Although for many years it was considered that gold has the role of a safe haven, an increasing number of recent works challenge such a point of view. The emergence of cryptocurrencies after the Global financial crisis has opened up numerous questions, one of them being whether cryptocurrencies, as an asset (money) independent of governments, can play the role of safe haven. Therefore, the paper examines whether gold and bitcoin, the latter as the best representative of crypto-currencies, can play the role of safe haven in relation to European indices. In the paper, this hypothesis was confirmed for gold and rejected for bitcoin.

Cryptocurrencies, Tax Ignorance and Tax Noncompliance in Direct Taxation: Spanish Empirical Evidence

“…First, almost 50% of respondents admit to having low or very low knowledge about cryptocurrencies, which creates a barrier and an increased risk of tax non-compliance when dealing with them, aligning with the findings of studies such as Arli et al (2020) or Smutny et al (2021). Moreover, 89.3% of respondents claim to have no or very low knowledge of cryptocurrency taxation, despite actively engaging in cryptocurrency transactions (Fabris 2019;Fabris and Ješić 2023). As a result, 49.5% of respondents did not declare any of their cryptocurrency investments in the previous tax year, a result similar to that reported in the study by Hoopes et al (2022).…”

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

“…Other authors, such as Phillips et al (2013), while not conducting research on cryptocurrencies, adopted a similar approach to examine the evolution of the price of a financial asset compared to the behavior of other assets in previous bubbles. On the other hand, Bitcoin was adopted in this study as a representative currency of the cryptocurrency market, as other authors, such as Fabris and Ješić (2023), have recently done. It is the leading cryptocurrency and possesses the highest market capitalization.…”

Volatility Spillover: Garch Analysis of S&P 500’s Influence on Precious Metals

“…The financial markets and institutions have changed and developed rapidly in recent decades due to general trends of deregulation, liberalization, globalization and breakthroughs in computer technology (Fabris, 2019;Milojevic & Redzepagic, 2021). In times of instability, policymakers focus on maintaining price stability and amortizing external shocks that threaten to jeopardize the achievement of price stability (Fabris & Lazic, 2022;Ozer, Grubisic & Küçüksakarya, 2023), while investors focus on preserving capital value (Pazner & Razin, 1975;Fabris & Jesic, 2023;Kamıslı, Ozer, Sayılır, & Diallo, 2023). This dual focus on price stability and capital preservation is crucial for ensuring economic stability.…”