Bitcoin [BTC] should make at least 6% of investment portfolio: US think tank
The study "Risks and Returns of Cryptocurrency" was conducted by Yale University professor and economist Aleh Tsyvinski and published by National Bureau of Economic Research (NBER), a US-based think tank.
The research paper states it should be part of investors' portfolio even if they are skeptic about the cryptocurrency.
"Even if the investor believes Bitcoin will only have half of its historical performance going forward, she should still hold about 3.1 percent share of Bitcoin in her portfolio."
The study suggests investors should hold a minimum of 1 percent of their portfolio in Bitcoin, for the sake of diversification.
Bitcoinist.com writes the NBER study resonates with the observations made by Arizona State University professor Dragan Boscovic. He said:
"Institutional investors are recognizing this new asset as a valued investment opportunity; this will encourage individual investors. It will also encourage consumers and small shops to start trading in cryptocurrency."
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