# kaal:claim:2998033-024

**Claim.** Even though crypto investments can be as volatile as or more volatile than traditional investments, digital currencies may still serve as a hedge against traditional investments because they are not tied to equity market movements.

**Type.** mechanism  **Support.** argued

**Holds when.**

- holds to the extent crypto returns are uncorrelated with traditional stock and equity markets

**Source quote.**

> Although crypto investments can to be just as and more volatile than traditional investments, digital currencies might be used to hedge against traditional investments.

**From.** Wulf A. Kaal, *Blockchain Innovation for Private Investment Funds* (2017), IV.1. Diversification, page 22

**Cite as.** Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

**Verify.** sha256 of source PDF `aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Innovation%20for%20Private%20Investment%20Funds.pdf

**Topics.** systemic-risk

**Keywords.** diversification, hedging, volatility, digital-currencies, correlation

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3409548-029

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.