Bitcoin Should Be In Every Portfolio Says Yale Professor

· 01 Sep 2018 in Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Bitcoin Should Be In Every Portfolio Says Yale Professor

According to a recent study by Yale professor Aleh Tsyvinski, Bitcoin should be part of a good investment portfolio. And yes, even skeptics should adopt the famous virtual currency.

Yale Professor Says Bitcoin is Important

According to Mr. Tsyvinski, Bitcoin should be in every single investor’s portfolio. In a report he conducted, he says that the famous virtual currency is an indispensable part of a portfolio. And this does not distinguish between crypto lovers and skeptics.

As per the report, those Bitcoin supporters should invest over 6% of their funds in cryptos. Instead, those who do not believe in virtual currencies and their future potential should invest 4% of their portfolio in digital assets.

However, he mentioned that the minimum invested in crypto is one percent.  In this way, users will be able to have a diversified portfolio. In the study,  virtual currencies included coins like Bitcoin (BTC), Ethereum (ETH) and XRP. Additionally, the study informed that these digital assets cannot be classified either as traditional currencies or equities.

Tsyvinski reported on the matter:

“Our results cast doubt on popular tales that cryptocurrencies derive their value either from a unit of account, such as the usual currencies or as a means of preserving value, such as precious metals.”

He has also explained that digital assets can disrupt different markets. Bitcoin, for instance, could create a positive change in the healthcare and consumer goods industries.

In sum, virtual currencies are very important for investors and to diversify portfolios. One of the positive aspects is that they have a high yield potential compared to other assets. If there is a portfolio with no gains, a small percentage in cryptos can make the difference.

Tsyvinski’s conclusion is similar to the one that Professor Dragan Boscovic, from Arizona State University, has.

In a study performed, he explained that investors recognize virtual currencies as a valuable investment opportunity. Moreover, he said that this will encourage small businesses and consumers to start trading cryptos.

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