Having been involved in crypto's for a while now I know this is somewhat controversial topic among investors, similar to investing in precious metals. But seeing the sentiment from the beginning of the year go from everyone hating Bitcoin and other crypto's and wanting them banned, to seeing an endless amount of the biggest banks, hedge funds and investors enter the crypto space, with governments around the world reacting surprisingly positive and now on the verge of approving ETF's, (not to mention all the developments within the crypto space itself) I thought this new Yale study might prove some interesting food for thought on this sub. Although it'll probably be downvoted into oblivion :D Some might find it an interesting and a well balanced perspective.
https://news.yale.edu/2018/08/06/assessing-cryptocurrency-yale-economist-aleh-tsyvinski
TLDR:
Keep in mind that we’re not offering investment advice, but it is a very basic question that one would ask about any asset class, and we approach the question at the end of our study. When you invest in your retirement, Vanguard or whatever platform you use will suggest how to best allocate your portfolio. We did the same for cryptocurrency. If you as an investor believe that Bitcoin will perform as well as it has historically, then you should hold 6% of your portfolio in Bitcoin. If you believe that it will do half as well, you should hold 4%. In all other circumstances, if you think it will do much worse, then you should still hold 1%. Of course, one has to remember that, as with any other assets, past performance is not a guarantee of future returns. Maybe cryptocurrency will completely change its behavior, but currently the market does not think it will.
Yale economist Aleh Tsyvinski
Submitted August 10, 2018 at 12:03PM by SilverHoard https://ift.tt/2B00thq
