Why Bitcoin is Not a Currency But a Speculative Real Asset

8 Pages Posted: 12 Jan 2018 Last revised: 20 Jan 2018

See all articles by Dietmar Peetz

Dietmar Peetz

IFARA (Institute for Applied Risk Management)

Gregory Mall

Credit Suisse Asset Management

Date Written: September 9, 2017

Abstract

Bitcoin’s price has seen a meteoric rise over the last years. Bitcoin is a real asset but what is not real is the value assigned to it. We argue that Bitcoin has reached bubble territory and will ultimately correct. However, we believe that in the intermediate term, the bubble can become even bigger in the process of financialization. It is to bear in mind that Bitcoin is not for the faint hearted but for speculative investors with very high risk tolerance.

(The content of this article reflects the authors' personal view on this topic.)

Keywords: economics, finance, cryptocurrencies, Bitcoin, financial bubbles

JEL Classification: G01

Suggested Citation

Peetz, Dietmar and Mall, Gregory, Why Bitcoin is Not a Currency But a Speculative Real Asset (September 9, 2017). Available at SSRN: https://ssrn.com/abstract=3098765 or http://dx.doi.org/10.2139/ssrn.3098765

Dietmar Peetz (Contact Author)

IFARA (Institute for Applied Risk Management) ( email )

Zurich
Switzerland

Gregory Mall

Credit Suisse Asset Management ( email )

Kalandergasse 4
Zurich, 8045
Switzerland

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