July 8, 2019
If you are wondering whether or not cryptocurrencies should be considered when building a diversified investment portfolio, you may find it helpful to consider what some prominent investors are saying about the space. See below for various quotes from technologists, investors, and other investment professionals.
Short Summary: Investors below think at least 1% of net worth should be invested in cryptocurrencies.
Chamath Palihapitiya, founder and CEO of Social Capital, suggests “there’s an asymmetric upside to crypto investments”. An asymmetric payoff (also called an asymmetric return) is the set of possible results of an investment strategy where the upside potential is greater than the downside risk. Chamath also believes that 1% of net worth should be invested in cryptocurrencies. For more info on Chamath’s views, watch his interview on CNBC here.
In a Forbes article a number of investment professionals gave their views on crypto asset allocation:
David Martin, CIO at Blockforce capital, suggested "a 3-5% allocation of crypto is appropriate" for a "young professional".
Joe DiPasquale, CEO of BitBull Capital suggested young investors should consider allocating “anywhere between 0% - 5% of the[ir] portfolio", with annual portfolio balancing.
Marouane Garcon, MD of Amulet, suggested that "anywhere around 5-10%" of one's entire portfolio is reasonable.
Mati Greenspan, senior market analyst at eToro, said "depending on the size and makeup of the portfolio as well as the tolerance for risk," an investor could put "between 6 and 18%" into cryptocurrencies.
Scott Weatherill, chief risk manager of B2C2 Japan, said that "I think 20% is very reasonable, however I would also add that it's best just to buy BTC and ONLY BTC.
James Turk of Goldmoney, suggests that investors will continue to pivot away from assets with counterparty risks into haven commodities like gold and Bitcoin.
Disclaimer: The above content shall not be construed as financial, investment or legal advice, nor should this guide be interpreted as endorsing any specific products, services or digital assets. Please obtain your own advice from legal and financial experts, perform your own due diligence, and consult the relevant regulations prior to buying or selling cryptocurrency.