Why Academic Institutions are Investing in Bitcoin

BTC has a Better ROI that Any Other Investment. XAPO CEO Recommends Having at Least 1% of Any Portfolio in BTC

Bitcoin is one of the best investment opportunities for those willing to face the risk. The most popular and important crypto by total marketcap seems to be ending the bearish streak of 2018, sparking a wave of optimistic comments from analysts and investors around the world.

Recently, in an article entitled “The case for a small allocation to bitcoin,” Xapo CEO Wences Casares recommended that every investor should have at least 1% of their portfolio in Bitcoin. According to Mr. Casares, the potential benefits of such an investment far outweigh the risk associated with BTC hodling:

I suggest that a $10 million portfolio should invest at most $100,000 in Bitcoin (up to 1% but not more as the risk of losing this investment is high). If Bitcoin fails, this portfolio will lose at most $100,000 or 1% of its value over 3 to 5 years, which most portfolios can bear. But if Bitcoin succeeds, in 7 to 10 years those $100,000 may be worth more than $25 million, more than twice the value of the entire initial portfolio.

Xapo is one of the most important portfolios in the ecosystem. According to independent studies published a year ago, Xapo could hold more than 6.25% of the total BTC Supply.

Despite the strong bearish streak of 2018, BTC remains profitable today. A compilation of results published by Charlie ilello shows that BTC has generated an annual return superior to that of almost any other financial instrument, asset or commodity, except oil.

The bullish feeling about Bitcoin is shared by much of the community, even though there is still some danger of a correction. Arthur Hayes, CEO of BitMEX recently commented that BTC prices could “go higher if the world plays out the way I think it’s gonna play out.”

Hayes is known in the crypto-verse for being a cold person capable of changing his posture from bullish to bearish regarding market behavior.

Another bullish person who recently shared his opinion is Tom Lee, CEO of Fundstrat Global Advisors. The well-known expert stated that BTC could close the year with a price above 10k.