Bitcoin acts more sort of a tech startup stock rather than the digital gold – with investors reaping big rewards if it works but potentially losing everything if the digital asset fails somehow.
In line with an earlier report from digital asset manager CoinShares titled ‘A Little Bitcoin Goes A Long Way’. In it authors James Butterfill & Christopher Bendiksen argue that the very fact Bitcoin [BTC] “starting its life at a price of zero” gave it a stellar reputation.
“If it reaches its potential, the worth might be immense,” the report added.
“At the same time, there’s a non-zero chance that it fails entirely, leaving the price of Bitcoin on the brink of zero.”
Unlike many experts who suggest setting aside 1% of a portfolio for crypto assets, CoinShares suggested investors allocate “just under 4%” for Bitcoin alone.
The firm tested Bitcoin as a reliable store useful by seeing how the cryptocurrency performed as a part of a balanced 60/40 portfolio. It’s analysis indicated that the token enhanced annualised returns by 9.7% ranging from 2015, almost double comparable assets.
Bitcoin Vs Other Tech Stocks
Behaving sort of a tech stock is not any bad thing. Since the crypto bloodbath earlier in March, tech stocks have gained enormous ground. The worth of the Amazon rose 70.7% to $3,170, Apple rose 63.3% to $450, Facebook 54.5% to $263, and Google 23.6% to $1,496.
The report comes after a period of volatility with Bitcoin [BTC] breaking the $12k threshold for the primary time since the last year.