Is Bitcoin A New Asset Class?

The astonishing bull market (bubble?) in Bitcoin has drawn attention to the cryptocurrency from all corners. One of the questions that’s reasonating: Should Bitcoin be treated as an asset class, on par with stocks, bonds, real estate and commodities?

A Forbes article last year, citing a study by ARK Investment Management, offered “4 Reasons Why Bitcoin Represents A New Asset Class.” The firm, which Forbes labeled as the first public fund manager to invest in Bitcoin, argues that the low correlation is a key variable for the decision.

“If an investor who holds bonds and equities swapped a percentage of their prior holdings into bitcoin, because of bitcoin’s low correlation and superior absolute performance, they could have decreased the volatility of the portfolio while simultaneously increasing absolute returns,” opined Chris Burniske, an analyst at ARK and co-author of “Bitcoin: Ringing the Bell for a New Asset Class.” The low correlation, he asserts, “is the golden bullet of an asset class.”

()

Article HERE

I appreciate you being here! Have a nice day to all!

If you found this post helpful on Steemit, would you please upvote it and follow me @martinst