Altcoin News: Grayscale Recommends Considering Bitcoin for Long-Term Investment Portfolios

August 9, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Digital asset management company Grayscale Investments has presented a new research paper that describes how Bitcoin can be used to protect against financial instability in the world.

As an example of a situation in which this may be necessary, the authors pointed to a trade war between the United States and China.

According to them, the potential of the means of accumulation, payment characteristics and growth opportunities make Bitcoin an asset that has a unique opportunity to demonstrate strong performance both during normal economic cycles and during the liquidity crisis.

Thus, Grayscale recommends considering Bitcoin for inclusion in long-term investment portfolios:

“With continued adoption, Bitcoin represents a transparent, immutable, and global form of liquidity that can provide both wealth preservation and growth opportunities. As a result, we believe it deserves a steady strategic position within many long-term investment portfolios. While Bitcoin may not be appropriate for all investors based on their investment mandate or market microstructure limitations, some may see the benefit of adding an allocation to their portfolios.”

Analysts note that the price of Bitcoin is growing during the aggravation of economic uncertainty, which should reinforce their theoretical arguments.

“ While the risk asset drawdown is still in its very early stages, Bitcoin is on the rise as these risks are just beginning to show up in other asset and currency prices,” they add.

Recently, an alternative point of view was made by the leading strategist of the investment bank BMO Capital Markets, Brian Belsky, who believes that it is too early to call Bitcoin a safe asset.

Author: Marko Vidrih