CoinShares advises traditional investors to allocate 4% of assets to Bitcoin

The digital asset management firm CoinShares has proposed that traditional investors allocate 4% of their investment portfolio to Bitcoin.

en Report a Little Bitcoin Goes a Long Way by ForkLog on Scribd

Experts compare the first cryptocurrency to a successful startup that has delivered impressive results from scratch. In their view, the risks of investing in BTC are comparable to those of investing in technology companies.

“If Bitcoin unlocks its potential, its value could be enormous. At the same time there is a possibility of a total crash, which would bring this metric close to zero,” the report says.

Risks are diminishing as the cryptocurrency develops, CoinShares notes. Bitcoin’s reliability as a store of value is becoming increasingly evident.

In a traditional 60/40 (stocks/bonds) portfolio, the optimal allocation to Bitcoin can reach 4%, the experts say.

In May, trader and founder of the Tudor Investment Corporation Paul Tudor Jones confirmed that he holds 1-2% of his assets in digital gold. His fortune is estimated at $5.1 billion.

Earlier he told his fund’s clients that he is considering trading Bitcoin futures as a hedge against inflation.

This week Nasdaq-listed MicroStrategy announced a $250 million purchase of BTC. The firm’s chief executive views Bitcoin as a more reliable alternative to the U.S. dollar.

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