Despite Bitcoin’s Price Drop In 2018 Analysts Believe It’s Fine To Hold BTC As Store Of Value

Despite Bitcoin’s Price Drop In 2018 Analysts Believe It’s Fine To Hold BTC

Bitcoin (BTC) did not have a good 2018 in terms of price action. The most popular digital currency in the market did not perform well. Since December 2017 until December 2018, Bitcoin lost more than 82% of its value.

Because of this, there were several individuals that believed that Bitcoin was not going to be growing anytime soon.

This is why, Anthony Pompliano, the founder of Morgan Creek Digital, retweeted the Twitter user planB saying that a portfolio of 1% Bitcoin and 99% cash outperformed the S&P 500 over the last ten years. This is a low risk, a higher return and included three Bitcoin crashes of more than 80%.

According to what Pompliano wrote on Twitter, crypto will be outperforming stocks for the next ten years as well.

One of the planB followers mentioned that even a portfolio with a 2% allocation into Bitcoin that is rebalanced every year makes sense. Thus, it makes sense for companies, institutions, hedge funds, venture groups, and other mainstream investors to enter the crypto market.

According to Hedge Fund Research and Bloomberg, funds’ annual returns have wanted. During the last decade, the average hedge fund posted 6.4% a year.

Plan B believes that institutions are looking at this data trying to improve their returns through diversification. Regarding this issue, Pompliano wrote in a blog post that hedge funds should have a look at Bitcoin to improve their profits in the future.

There are several individuals and experts that believe that Bitcoin could grow and reach similar levels to gold. Bitcoin’s market capitalization could reach new highs in the future. One of these analysts and Bitcoin bullish is John McAfee, who predicted that Bitcoin could reach $1,000,000 in the next years.

At the moment, Bitcoin is being traded around $3662 and it has a market capitalization of $64.20 billion.

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