According to Odaily Planet Daily, Bitwise Chief Investment Officer Matt Hougan said in an article on X that historically, Bitcoin and gold have had very different impacts on investment portfolios. Bitcoin has increased returns without increasing risk, while gold has reduced risk without reducing returns.
He pointed out that this is not investment advice, but only a historical study. Past performance does not guarantee future returns. The best way to understand the impact of Bitcoin and gold on a portfolio is to look at what has happened historically when you add more and more of these two assets to the portfolio.
According to the simulation, a 2.5% allocation to Bitcoin would increase the portfolio's return from 98% to 148%, while the standard deviation would only increase by 33 basis points. In contrast, a 2.5% allocation to gold would only increase the portfolio's return by 1%, but would reduce volatility.
Each asset has its own trade-offs, and there is no guarantee that these features will continue to exist in the future. But as government stimulus programs around the world take hold, it’s important to remember that Bitcoin and gold play different roles in a portfolio.
