Bitcoin (BTC) has been the top performing digital asset over the last 10 years, according to Cointelegraph.
Mark Yusko, CEO of Morgan Creek Capital, said investment portfolios should have a Bitcoin share of at least 1 percent.
Over the past six years, many investors have taken advantage of Bitcoin’s large price movements due to its volatile nature.
Therefore, it has been proposed that a diversified crypto portfolio does not offer the advantages an investor would expect from conventional investments.
The extreme uncertainty in Bitcoin is often viewed as an unfair danger to mainstream investors, and it has been one of the key issues preventing investment firms from considering as a stable investment vehicle.
Nonetheless, fluctuation is one of the main reasons which make Bitcoin generate incredible returns for investors.
Cointelegraph has examined the diversification potential of traditional stock indices in comparison to investing only in Bitcoin to decide whether diversified crypto portfolios provide a return higher than the average provided by traditional markets.
When considering the period from January 2017 to December 2019, it was found that BTC has offered the highest return of 293 percent compared with the other investment options.
Bitcoin shows a 0.98 ratio from a risk-adjusted viewpoint, while Grayscale shows a 0.67 Form ratio. This indicates that investors take high risk for the return they get from investing in these assets.
Cryptolydian earlier reported that BTC has achieved a jaw-dropping increase in price by 62,500% after 10 wild years. While the first and still biggest cryptocurrency has had its ups and downs, and despite the overall downtrend since last July, Bitcoin seems to have a lot more to offer than we have seen.
Square Crypto the Bitcoin division of Twitter founder Jack Dorsey, said, “This decade was bitcoin just warming up”. The optimistic assessment is not a shoot for the moon. Bitcoin was named the best investment of the decade by Bank of America. It is attracting more miners as hashrate steadily and strongly increased since Jan 2018.
Going ahead, investors have the opportunity to benefit from high-gain assets such as BTC, and mitigate their risk exposure through investing in traditional stock indices.