Dynamic Interactions between Gold-Backed and Conventional Cryptocurrencies A QVAR Network Approach
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This study investigates the volatility and interconnectedness of gold-backed cryptocurrencies—HelloGold (Hello), Bitcoin, X8X, and PaxGold—within the framework of sustainable finance and its alignment with the Sustainable Development Goals (SDGs). Utilizing quantile vector-autoregressive (QVAR) approach, the research analyzes the contributions of both short-run and long-run volatility in pairwise comparisons among these assets. The findings reveal that Bitcoin demonstrates significantly higher volatility compared to the other cryptocurrencies, especially when paired with HelloGold and PaxGold, where short-term fluctuations are particularly pronounced. In contrast, X8X exhibits greater stability, maintaining consistently low volatility across all its pairings and showing minimal contributions from both the short- and long-term horizons. These results suggest that while Bitcoin remains a highly volatile option in the cryptocurrency market, X8X and PaxGold offer more stable investment alternatives, making them potentially safer choices for portfolio diversification. Ultimately, this study provides valuable insights into the varying volatility characteristics of these digital assets, assisting investors in optimizing their portfolios amid market uncertainty.
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