Hermann Elendner, Ph.D.: Crypto-Currencies as Investment Assets

While the original design goal of Bitcoin was decentralised, digital money - a peer-to-peer means for payments - a decade later cryptocurrencies have established themselves as alternative investment assets. However, just as law and regulation are still struggling with their censorship resistance, so is standard asset-pricing theory with their high returns, high volatilities and low correlations. This Fellow Talk will address the longer-run perspective of crypto-asset investments: the tension between economic theory and empirical properties, the momentum in cryptocurrency prices, and how to incorporate the asset class of "cryptos" in portfolio and risk management.