Bitcoin Should be Added to an Investment Portfolio Finds Study

bitcoin performace equity up to 2019

After analyzing a portfolio with and without bitcoin, a study says the “robustness check confirms the findings and also advocates for the cryptocurrency to be added to the portfolio.” The study by economists at Warsaw University says “we want to verify if an inclusion of Bitcoin into the portfolio consisting of different market assets moves the efficient frontier… We check if Bitcoin is able to gain some substantial weight and improves the risk-return profile of the whole portfolio.” They say “the empirical analysis is based on the comparison of the portfolios with and without Bitcoin in the context of two Markowitz criteria of optimization. We track the behavior of the portfolio consisting of 10 traditional assets(representing equity, fixed income, money market, commodities, real estate markets) over a certain period of time. Then we add to it Bitcoin and look at the performance measures… The historical observations cover the period from…

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