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What Will 2024 Bring for Bitcoin?

FYI - For Your Innovation

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Managing Risk and Portfolio Performance with Bitcoin Allocation

In this chapter, they discuss the importance of managing risk when investing in Bitcoin and the common mistake of not adjusting position sizes according to the volatility. They compare the performance of a portfolio with a 2% allocation of Bitcoin and 98% cash to a portfolio with a 100% allocation to the S&P 500 over any four-year period. The results show that the performance of the portfolio with the Bitcoin allocation is better, regardless of the chosen four-year period.

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