Post
Topic
Board Bitcoin Discussion
Re: BlackRock: “The optimal BTC allocation is a large 84.9%”
by
Mauser
on 29/07/2023, 06:32:15 UTC
"Starting with 60-40 equity-bond portfolio, which is produced with a risk aversion of gamma=1.5, the optimal BTC allocation is a large 84.9%"


I don't understand, how do you add crypto currencies to a 60/40 stocks/bond portfolio? Isn't it already at a 100, where do we get the 84.9% for Bitcoins from? To me this number seems really high. Blackrock is the largest ETF company in the world and the main selling point of ETFs is to buy the index as it's cheap and offers a high level of diversification. Putting now almost everything into one investment seems very risky. And how do you come up with a fixed investment in Bitcoin of 2-3 BTC? Shouldn't the number be a percentage based on our total portfolio or net worth? The more money I have the more I would also put in bitcoins. Nothing wrong with owning 10 BTC if you are a millionaire.