Introduction to Gold Backed Cryptocurrencies

The modern financial markets are constantly evolving and giving rise to new asset types, Gold backed cryptocurrencies (GBCs) are one such asset class. Recent studies try to deploy a comparative analysis between Gold and GBCs. However, do GBCs independently stabalize a volatile market?

Research Methodology

This study addresses this question by creating dummy portfolios to replicate the economies of USA, EU and China. A DCC-MGARCH analysis is then employed on the log returns of the five major assets chosen in the portfolio.

Additional Insights

In addition to this, the book also tries to find out whether the information on volatility of GBCs provide any predictions on the volatility of equities.