create account

"Every portfolio should have a 4% allocation to Bitcoin (at least)" by jrcornel

View this thread on: hive.blog |  peakd.com |  ecency.com
bitcoin · @jrcornel ·
$18.56
"Every portfolio should have a 4% allocation to Bitcoin (at least)"
https://i.postimg.cc/hjxqvk6d/shutterstock-192516929.jpg

# A professor at Yale University thinks everyone needs to own bitcoin.

According to an article released a few months back, professor Aleh Tsyvinski thinks that the perfect risk adjusted portfolio needs to include an allocation to bitcoin.

This is coming on the heels of my post yesterday where I said that at some point just about all the big macro funds will hold at least a little bit of bitcoin.

That can be seen here:

https://steemit.com/bitcoin/@jrcornel/at-some-point-big-macro-funds-will-have-a-1-position-in-bitcoin

# Why should everyone hold bitcoin?

According to Tsyvinksi, he did some research modeling some portfolios holding different assets and different asset classes...

His findings were that due to the asymmetrical potential for returns with bitcoin, it needs to be owned.

His findings showed that a 4% allocation was ideal, though for those that were slightly less risk averse, a 6% allocation could be practical as well.

More about his findings can be found here:

https://bitcoinist.com/new-yale-study-every-portfolio-must-include-at-least-6-bitcoin/

So, basically his thesis is due to the large percentage gains bitcoin has enjoined since its inception.

# Novogratz agrees on the allocation, but for a different reason.

As I mentioned in my post yesterday, Novogratz thinks that bitcoin is a perfect gold proxy.

It should be owned in place of, or along with, gold as a portfolio hedge against market uncertainty at an allocation of at least 1%.

Novogratz used to manage a very large macro fund on Wall Street and likely still has many contacts/friends in the industry...

Which means, him saying that he thinks many funds will start an allocation to bitcoin carries more weight than most who would say this...

There you have it folks, bitcoin needs to be owned anywhere from 1%-6% due to the potential for asymmetrical returns as well as it's properties as digital gold.

Eventually this is going to catch on with many of the major funds.

Stay informed my friends.

Image Source:

https://bitcoinist.com/new-yale-study-every-portfolio-must-include-at-least-6-bitcoin/

Follow me: @jrcornel
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 220 others
properties (23)
authorjrcornel
permlinkevery-portfolio-should-have-a-4-allocation-to-bitcoin-at-least
categorybitcoin
json_metadata{"community":"busy","app":"busy/2.5.6","format":"markdown","tags":["bitcoin","crypto","busy","news","blog"],"users":["jrcornel"],"links":["https://steemit.com/bitcoin/@jrcornel/at-some-point-big-macro-funds-will-have-a-1-position-in-bitcoin","https://bitcoinist.com/new-yale-study-every-portfolio-must-include-at-least-6-bitcoin/","https://bitcoinist.com/new-yale-study-every-portfolio-must-include-at-least-6-bitcoin/","/@jrcornel"],"image":["https://i.postimg.cc/hjxqvk6d/shutterstock-192516929.jpg"]}
created2019-02-12 20:53:51
last_update2019-02-12 20:53:51
depth0
children19
last_payout2019-02-19 20:53:51
cashout_time1969-12-31 23:59:59
total_payout_value14.345 HBD
curator_payout_value4.213 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length2,185
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,785,319
net_rshares37,849,555,422,455
author_curate_reward""
vote details (284)
@lucylin · 
..my portfolio currently stands a 485 steem., and zero anything else - how much BTC do I need to buy? lol
properties (22)
authorlucylin
permlinkre-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t014803014z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 01:48:09
last_update2019-02-13 01:48:09
depth1
children2
last_payout2019-02-20 01:48:09
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length105
author_reputation185,811,362,824,733
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,794,736
net_rshares0
@jrcornel ·
$0.88
This is mainly talking about a well diversified portfolio. IE one that holds stocks, commodities, bonds, precious metals, annuities, real-estate, etc etc.
👍  , , , , , ,
properties (23)
authorjrcornel
permlinkre-lucylin-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184340720z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:43:39
last_update2019-02-13 18:43:39
depth2
children0
last_payout2019-02-20 18:43:39
cashout_time1969-12-31 23:59:59
total_payout_value0.667 HBD
curator_payout_value0.215 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length154
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,827,100
net_rshares1,727,051,002,306
author_curate_reward""
vote details (7)
@mtl1979 · 
Enough that you can buy more Steem when the exchange rate is favorable... Then sell some of the Steem when the exchange rate is high enough. That's how I do it...
properties (22)
authormtl1979
permlinkre-lucylin-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t100136048z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 10:01:24
last_update2019-02-13 10:01:24
depth2
children0
last_payout2019-02-20 10:01:24
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length162
author_reputation901,077,179,728
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,807,987
net_rshares0
@newageinv · 
Wait until the fiat currencies they hold start to devalue due to the debt bubble!  Then we will see the flock towards store of value like bitcoin!

Posted using [Partiko iOS](https://steemit.com/@partiko-ios)
properties (22)
authornewageinv
permlinknewageinv-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t133559029z
categorybitcoin
json_metadata"{\"app\":\"partiko\",\"client\":\"ios\"}"
created2019-02-13 13:36:00
last_update2019-02-13 13:36:00
depth1
children4
last_payout2019-02-20 13:36:00
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length208
author_reputation263,357,421,663,723
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,815,049
net_rshares0
@ecreditcoin · (edited)
$0.55
Yeah. Thats when Bitcoin will exit the bear market into full bull market. :)
👍  , , , , , , , , , ,
properties (23)
authorecreditcoin
permlinkre-newageinv-newageinv-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t172343098z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 17:22:15
last_update2019-02-13 17:22:36
depth2
children1
last_payout2019-02-20 17:22:15
cashout_time1969-12-31 23:59:59
total_payout_value0.416 HBD
curator_payout_value0.137 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length76
author_reputation571,526,146,004
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,824,338
net_rshares1,077,837,540,775
author_curate_reward""
vote details (11)
@jrcornel ·
$0.85
If that is what we are waiting on, it's going to be a long wait...
👍  , , , , , , , , ,
properties (23)
authorjrcornel
permlinkre-ecreditcoin-re-newageinv-newageinv-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184531808z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:45:30
last_update2019-02-13 18:45:30
depth3
children0
last_payout2019-02-20 18:45:30
cashout_time1969-12-31 23:59:59
total_payout_value0.643 HBD
curator_payout_value0.206 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length66
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,827,156
net_rshares1,662,975,138,749
author_curate_reward""
vote details (10)
@jrcornel ·
$0.87
What is going to cause that debt bubble to collapse? With the dollar being the world's reserve currency and the fact that the US has given money to so many countries, part of me doesn't think the debt bubble is really as big of a deal as people make it out to be. They may just wipe the slate at some point and tell everyone else to deal with it.
👍  , , , , , , , , , ,
properties (23)
authorjrcornel
permlinkre-newageinv-newageinv-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184514859z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:45:15
last_update2019-02-13 18:45:15
depth2
children1
last_payout2019-02-20 18:45:15
cashout_time1969-12-31 23:59:59
total_payout_value0.656 HBD
curator_payout_value0.210 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length346
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,827,148
net_rshares1,697,252,886,522
author_curate_reward""
vote details (11)
@newageinv · 
I think when the growing economic population start to have more buying power and realize how it will be manipulated based on a currency not in their control.  The likes of China, India and Brazil are key examples that could set the tone to pressure the debt by no longer buying it or even selling it for other assets.

Posted using [Partiko iOS](https://steemit.com/@partiko-ios)
properties (22)
authornewageinv
permlinknewageinv-re-jrcornel-re-newageinv-newageinv-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t185326976z
categorybitcoin
json_metadata"{\"app\":\"partiko\",\"client\":\"ios\"}"
created2019-02-13 18:53:27
last_update2019-02-13 18:53:27
depth3
children0
last_payout2019-02-20 18:53:27
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length379
author_reputation263,357,421,663,723
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,827,414
net_rshares0
@steemitboard · 
Congratulations @jrcornel! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

<table><tr><td>https://steemitimages.com/60x70/http://steemitboard.com/@jrcornel/commented.png?201902121627</td><td>You got more than 8250 replies. Your next target is to reach 8500 replies.</td></tr>
</table>

<sub>_[Click here to view your Board](https://steemitboard.com/@jrcornel)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>



> Support [SteemitBoard's project](https://steemit.com/@steemitboard)! **[Vote for its witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1)** and **get one more award**!
properties (22)
authorsteemitboard
permlinksteemitboard-notify-jrcornel-20190212t212047000z
categorybitcoin
json_metadata{"image":["https://steemitboard.com/img/notify.png"]}
created2019-02-12 21:20:45
last_update2019-02-12 21:20:45
depth1
children0
last_payout2019-02-19 21:20:45
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length750
author_reputation38,975,615,169,260
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,786,242
net_rshares0
@teutonium · 
Going to send him a mail saying my portfolio is only cryptos xD Owning stocks is harder than owning cryptos, a lot of boreucratic BS with stocks, while with cryptos there is none of the BS, no taxes in my country! Nothing!

I might diversify in the future, but only after the market crashes hard (which should happen in the next 5 years), probably student loans defaulting
👍  
properties (23)
authorteutonium
permlinkre-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190212t230513663z
categorybitcoin
json_metadata{"community":"busy","app":"busy/2.5.6","format":"markdown","tags":["bitcoin"],"users":[],"links":[],"image":[]}
created2019-02-12 23:05:18
last_update2019-02-12 23:05:18
depth1
children3
last_payout2019-02-19 23:05:18
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length372
author_reputation26,461,519,991,043
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,789,673
net_rshares5,024,811,568
author_curate_reward""
vote details (1)
@ecreditcoin ·
$0.32
Pretty much the same case here. Currently, cryptocurrencies are the only type of investments I'm involved in.  I agree, traditional stocks involve too much bureaucracy, and generally need to act through some broker, who may probably not be working in my best interests.
👍  , , , , , , , , , , ,
properties (23)
authorecreditcoin
permlinkre-teutonium-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t172107997z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 17:19:39
last_update2019-02-13 17:19:39
depth2
children1
last_payout2019-02-20 17:19:39
cashout_time1969-12-31 23:59:59
total_payout_value0.241 HBD
curator_payout_value0.078 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length269
author_reputation571,526,146,004
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,824,250
net_rshares626,860,513,163
author_curate_reward""
vote details (12)
@jrcornel ·
$1.24
Not investing in stocks (though usually done through a fund as opposed to stock picking) has been a huge mistake by people for the last 100 years. That may change going forward, but they still make a lot of sense in retirement portfolios.
👍  , , , , , , , , , , , , , , , ,
properties (23)
authorjrcornel
permlinkre-ecreditcoin-re-teutonium-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184146214z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:41:45
last_update2019-02-13 18:41:45
depth3
children0
last_payout2019-02-20 18:41:45
cashout_time1969-12-31 23:59:59
total_payout_value0.935 HBD
curator_payout_value0.303 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length238
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,827,027
net_rshares2,419,325,261,013
author_curate_reward""
vote details (17)
@jrcornel ·
$0.94
When they say portfolio, they are not just talking stocks. They are talking any investment you might hold. Stocks, mutual funds, gold/precious metals, commodities, bonds, annuities all might make up an investing portfolio...
👍  , , , , , ,
properties (23)
authorjrcornel
permlinkre-teutonium-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184023732z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:40:24
last_update2019-02-13 18:40:24
depth2
children0
last_payout2019-02-20 18:40:24
cashout_time1969-12-31 23:59:59
total_payout_value0.709 HBD
curator_payout_value0.229 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length224
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,826,982
net_rshares1,834,397,549,043
author_curate_reward""
vote details (7)
@thedamus · 
Tick, tick, tick...
properties (22)
authorthedamus
permlinkre-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t010752785z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 01:07:57
last_update2019-02-13 01:07:57
depth1
children4
last_payout2019-02-20 01:07:57
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length19
author_reputation248,664,778,788,851
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,793,560
net_rshares0
@jrcornel ·
$0.93
Once we start going back up again, they will probably jump in.
👍  , , , , , , ,
properties (23)
authorjrcornel
permlinkre-thedamus-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t184221353z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 18:42:21
last_update2019-02-13 18:42:21
depth2
children3
last_payout2019-02-20 18:42:21
cashout_time1969-12-31 23:59:59
total_payout_value0.703 HBD
curator_payout_value0.227 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length62
author_reputation2,133,450,396,741,846
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd0
post_id79,827,045
net_rshares1,818,517,848,886
author_curate_reward""
vote details (8)
@thedamus · 
I await enthusiastically 😎👍
properties (22)
authorthedamus
permlinkre-jrcornel-re-thedamus-re-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190213t203056615z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-13 20:30:57
last_update2019-02-13 20:30:57
depth3
children2
last_payout2019-02-20 20:30:57
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length27
author_reputation248,664,778,788,851
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,830,569
net_rshares0
@truce · 
I def agree, gotta stay in that top percentile lol We are still so early. Great article.
properties (22)
authortruce
permlinkre-jrcornel-every-portfolio-should-have-a-4-allocation-to-bitcoin-at-least-20190214t050222469z
categorybitcoin
json_metadata{"tags":["bitcoin"],"app":"steemit/0.1"}
created2019-02-14 05:02:24
last_update2019-02-14 05:02:24
depth1
children0
last_payout2019-02-21 05:02:24
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length88
author_reputation313,080,347,684,274
root_title""Every portfolio should have a 4% allocation to Bitcoin (at least)""
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id79,844,973
net_rshares0
Help/Feedback