Analysts have long pointed to the lack of reliability of cryptocurrency Bitcoin as one of the main factors inhibiting its growth on the graph. Now, however, there is a rather surprising turn of events. Eminent economics professors at Yale University recommend that all investors add digital currencies to their portfolios.
Researchers point to factors such as the lack of correlation between crypto-currency and mainstream markets and the potential for huge and unprecedented returns.
Bitcoin should make up about 6% of your portfolio.
Choe today on the front charts of the cryptocurrencies we observe the Bessy, it is worth to look at their phenomenon more broadly. The price of BTC and the total capitalization of the digital currency market continues to grow in a macro perspective, and economists from Yale are now in favour of investors spending part of their money on crypto-currency.
In a recent article by economics professors Yale Yukun Liu and Ash Tsyvinsky entitled “Crypto Risk and Profits “, the duo notes that what happens in the space of this emerging asset class is completely unique and makes digital currencies a valuable addition to the professional investor’s portfolio.
Economists believe that the risks associated with cryptocurrencies such as Bitcoin, Ripple and Ethereum are different from those of stock markets, currencies and precious metals. They note that crypto-currency is not exposed to the most common stock exchange and macroeconomic factors. Therefore, they believe that BTC should “occupy 6% of each portfolio” of an investor.
Cryptocurrencies markets may bring further profits to investors
Liu and Tsyvinski also believe that crypto-currency can not only protect the investment portfolio from volatility in more traditional markets, but also stress that digital assets can gain in value in the long run. They claim that:
“Profits on crypto currencies can be predicted on the basis of two factors characteristic of this market – the momentum (a stock market indicator that shows the difference between the current price and the price in the past – bitcoin.pl) and investors’ attention.