HIGHER RETURNS LOWER RISK
Since 2013 more than $1.8 Billion has been allocated by venture capitalists into equity investments involving Bitcoin technology. In 2015 Bitcoins were the fastest growing area of VC funding, and to this day the Bitcoin sector generates the most excitement and passion from investors.
Whilst much of this excitement is based on an expectation of high capital returns, Bitcoin’s are also, increasingly, being seen as a safe haven, and an asset class that could play an important role in portfolio diversification. A report from the US Based Financial Planning Association® states that:
“Trading and investing in a virtual currency, such as Bitcoins, is readily accessible to individual investors. Uncertainty regarding taxation of Bitcoin transactions has been ameliorated with new IRS tax guidance. Given these observations, and the conclusions from the empirical analysis, individual investors can benefit from holding a small amount of Bitcoins in a diversified portfolio.”
The report continues that:
“Comparing [the data] also demonstrates that portfolio returns are higher, and the risk (probability) of incurring a loss is much lower, when Bitcoins are added to an investment portfolio with every portfolio optimization measure examined. Hence, the analysis demonstrates that adding Bitcoins to an investor’s portfolio does enhance efficiency.”
As the world’s longest established Bitcoin brokerage, we are experts at dealing with private clients and can provide a bespoke service for Wealth Managers, IFA’s and Family Offices.
Schedule some time with one of our specialists to discuss your specific needs. Send us an email at email@example.com to get started.