# kaal:claim:3409548-029

**Claim.** Digital currencies can serve as a hedge against traditional investments even though crypto investments can be as volatile as or more volatile than traditional ones, because they are not tied to the vicissitudes of the equity markets.

**Type.** condition  **Support.** argued

**Holds when.**

- portfolios seeking diversification away from traditional equity markets

**Source quote.**

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

**From.** Kaal, *Financial Technology and Hedge Funds* (2019), III.3 Diversification, page 26

**Cite as.** Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548

**Verify.** sha256 of source PDF `74227ab2656b06bfe4a29c942fc2ba26df9f476917e0a9f85ec038b8c3402c40` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Financial%20Technology%20and%20Hedge%20Funds.pdf

**Topics.** systemic-risk

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

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2998033-024

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