Bitcoin as a Safe Haven: Is It Even Worth Considering?

21 Pages Posted: 22 Jul 2018 Last revised: 27 Oct 2020

See all articles by Lee A. Smales

Lee A. Smales

University of Western Australia

Date Written: June 28, 2018


Research in cryptofinance has continued to consider whether Bitcoin possesses a safe haven property as traditionally defined by its correlation with other assets during times of market stress. However, this neglects other attributes of assets that are important to investors during periods of crisis. Bitcoin is more volatile, less liquid, and costlier to transact (in terms of time and fees) than other assets (including the traditional safe haven of gold) even in normal market conditions. Until the market matures, it is therefore unlikely to be worth considering Bitcoin as a safe haven.

Keywords: Bitcoin, Safe Haven, Gold, Cryptofinance, Cryptocurrency

JEL Classification: G00, G01, G1, G11

Suggested Citation

Smales, Lee A., Bitcoin as a Safe Haven: Is It Even Worth Considering? (June 28, 2018). Finance Research Letters, Vol. 30, 2019, Available at SSRN: or

Lee A. Smales (Contact Author)

University of Western Australia ( email )

UWA Business School
35 Stirling Highway
Perth, Western Australia 6009

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