CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,472.00
  • ethereum
    ETH$1,678.90
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » VanEck Report: Holding 3% Bitcoin In Your Portfolio Improves Performance Substantially

    VanEck Report: Holding 3% Bitcoin In Your Portfolio Improves Performance Substantially

    Author: Jordan Lyanchev

    Last Updated Feb 9, 2020 @ 10:07

    VanEck, New York-based investment management company, recently published a report regarding Bitcoin and its role in the market. By outlining the digital asset’s benefits, the paper showcases its potential to serve as an investment instrument and as a store of value.

    Even 1% Bitcoin Can Raise The Portfolio

    Founded in 1955, VanEck is a global investment firm that offers investment options in ETFs, Mutual Fund Management, hard assets, precious metals, and more. Recently, the company published a report that compares how different sorts of institutional investment portfolios performed from early 2012 to the end of 2019.

    Out of six possible scenarios, three include a small portion of Bitcoin. In fact, the best performing portfolio contains 58.5% equity, 38.5% bonds, and only 3% of the largest cryptocurrency. According to the report, it produced a cumulative return (CR) of over 200 points and an annualized return (AR) of 15.13%.

    However, if BTC is extracted, the results would be dramatically less – CR of 110 and AR of less than 10%.

    Bitcoin Compared With Investment Portfolios. Source: vaneck.com
    Bitcoin Compared With Investment Portfolios. Source: vaneck.com

    Moreover, even a small Bitcoin allocation of 0.5% or 1% could raise the yearly returns with as much as 2%. This may not come as a surprise when one looks at how BTC performed during the last decade.

    ADVERTISEMENT

    As Cryptopotato reported, the top cryptocurrency by market cap delivered an unprecedented ROI of 8,900,000%. Furthermore, it dramatically outperformed the biggest stock gainer from the S&P 500, which was Netflix, with 4,177%.

    Additionally, the paper indicates that the popular S&P 500 Index, tracking the stock performance of 500 large companies listed on U.S. stock exchanges, is second on that list. During the same period, the S&P delivered a cumulative return of 190 points and an annual return of 14.42%.

    Bitcoin As A Store Of Value

    VanEck’s paper also examines the largest cryptocurrency as a store of value.

    It reasons that Bitcoin and gold possess monetary value because they are scarce and durable. Even though it’s unknown the exact quantity of gold in the world, it’s well-established that there’s a finite supply. Contrary, the largest cryptocurrency is uniquely pre-programmed, and only 21 million bitcoins will ever exist.

    The precious metal’s physical form is another benefit according to the report since it can be converted into coins, bars, etc.

    Bitcoin, on the other hand, shines due to its digital and decentralized nature, strong privacy characteristics, and “is a bearer asset that can be memorized, making it especially useful in authoritarian regimes.”

    Aside from comparing gold with Bitcoin, VanEck adds a government-issued fiat currency (such as the U.S. dollar) in the mix. The paper examines them in eleven categories, including portability, security, divisibility, and more.

    Bitcoin VS Gold Vs USD. Source: vaneck.com
    Bitcoin VS Gold Vs USD. Source: vaneck.com

    As the largest cryptocurrency outperforms the other two assets in almost all categories, the report concludes that; “Bitcoin has the potential to become “Digital Gold.”

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • bitcoin_whale
      Bullish? On-Exchange Bitcoin Declines While Whales Accumulate (Report)
    • BidenTrumpBitcoin
      Trump Or Biden? Max Keiser Explains Why Bitcoin Will Be The Ultimate Winner After the US Elections
    • bitcoin_whales
      Report: After Buying Bitcoin's Bottom In March, Whales Continue Accumulating
    Tags: Bitcoin Gold S&P 500
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$23,472.00
  • ethereum
    ETH$1,678.90
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!