In the investment portfolio battle of "Gold vs Bit", Bitcoin is gradually gaining the upper hand.

Macro analyst Lyn Alden agrees with Vijay Boyapati, author of "The Bullish Case for Bitcoin," suggesting that gold investors could swap 5% of their positions for Bitcoin as a hedge against the risk of Bitcoin potentially continuing to capture market share.

The current Bitcoin price is approaching $122,000, with a market capitalization exceeding $3.8 trillion, ranking it as the fifth largest asset globally, surpassing silver and Amazon. More than a hundred listed companies, including BlackRock and Strategy, hold nearly 2.7 million BTC, accounting for 13% of the total supply. In contrast, gold, although also nearing its historical high of $3,500 per ounce, is facing challenges to its status as a dominant store of value.

Lyn Alden states with specific numbers that if an investor holds $100,000 worth of gold, then allocating $5,000 to purchase Bitcoin can achieve a balance: if the price of Bitcoin continues to rise significantly, this 5% allocation can greatly enhance the overall portfolio's returns; conversely, even if the price of Bitcoin crashes, the investor would only lose 5% of their total assets, keeping the risk manageable.

Vijay Boyapati pointed out that in 2013 he regarded Bitcoin as the "insurance" of gold; now, however, the situation has reversed and he considers gold as the "insurance" of Bitcoin. This shift in perspective clearly reflects the profound changes in the risk-return curve of crypto assets over the past decade.

However, the skeptical gold bull Peter Schiff continues to speak negatively about Bitcoin and calls on investors to switch to silver. But as companies and institutions accelerate the adoption of BTC, these bearish voices are gradually being drowned out by the real data from the market.

As Alden said, investors can take 5% of their portfolio to go on a beach vacation and forget about that portion of their assets, while the remaining 95% is still safely stored in the vault. The brilliance of this strategy lies in allowing investors to bet on future trends at a very low cost, while the principal funds remain absolutely safe.

Overall, converting a small portion of gold investments into Bitcoin is not a risky gamble, but rather a way to participate in this technological revolution at a lower cost while ensuring the safety of the majority of wealth and employing prudent risk management strategies.

#比特币投资 # Risk Management #Asset Allocation