According to Professor of Economics at Yale University Oleg Sivinskogo, Bitcoin needs to be an integral part of your financial portfolio, regardless of whether You are a enthusiast of cryptocurrency or not.
For optimal construction of crypto-currency portfolio, according to the economist, the share of Bitcoin should have not less than 6%. Those who are less enthusiastic about the most popular cryptocurrency in the world and still have to have 4 percent.
In any case, regardless of your position on this issue, Bitcoin should be at least 1 percent of your financial portfolio, for the sole purpose of diversification.
The study seems consistent with the observations of another scientist — Professor Dragan Boskovice from Arizona state University. Speaking about the cryptocurrency, he said:
“Institutional investors recognize this new asset valuable investment opportunity; this will encourage private investors. It also will encourage consumers and small stores to start trading cryptocurrency”
A study entitled “Risks and profits of cryptocurrency” notes a very positive feature of the cryptocurrency compared to traditional stocks and bonds.
Using the Sharpe ratio, Tsyvinski proves that cryptocurrencies have a higher potential investment returns, despite increased volatility. The research focused on the Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP).
Observation Sivinskogo and his colleagues contradict another well — known economist and Nobel prize winner Robert Schiller, who earlier in may called Bitcoin a failed experiment and “another example of a deceptive human behavior.”