Following last night's election results, Bitcoin rose sharply in value, in line with gold, while other digital currencies largely failed to provide a safe haven against the extreme spike in markets volatility.
In a recent project, our students @MIIS have looked at the relative valuation of Bitcoin and Ether (cryptocurrency backing Ethereum blockchain platform) highlighting
- Fundamental supply and demand drivers for both currencies; and
- Assessing both currencies in terms of their hedging and safe haven properties
The conclusion of the case study was squarely in line with Bitcoin and Ether behaviour observed today: Bitcoin outperforms Ether as both a hedge and a safe haven, and has stronger risk-adjusted returns potential over the next 5 years.
See the case here: http://www.economist.com/whichmba/mba-case-studies/investment-case-study-competition-2016/middlebury-institute-international-studies and please, give your vote to the team of our students.