Family Offices Finally Accept the Benefits of Investing in Bitcoin

I will use this piece to analyze the growing affinity for digital assets and how Bitcoin is fast becoming a viable investment asset class for institutional investors and family offices.

The value of BitcoinThe origin of Bitcoin might have caused many to doubt its efficacy.

There remains an ounce of doubt surrounding the viability of Bitcoin as an asset class.

From my recent analysis of the history of money and the various theorems that established the origin of money, it is evident that Bitcoin fulfills the core requirements that other forms of money have passed.

Bitcoin has low correlation to traditional assetsInstitutional investors are aware of the risks that come with allocating a large percentage of their funds to a particular asset or market indices.

A portfolio with 58.5% of the fund distributed to equities, 38.5% to bonds and 0.5% to Bitcoin generated returns that surpassed that of a portfolio allocated solely to the S&P 500 by over 150% as of July 2019.The scarcity of BitcoinFrom the basic principle of supply and demand, a commodity tends to retain or increase its value when its supply does not match its demand.

What all these facts and figures mean is that there is a possibility that the price of Bitcoin will continue to soar.

One popular crypto supporter in particular asserted that the next halving, scheduled for May 2020, could cause one Bitcoin to sell for $1 million.

Without any doubt, the halving slated for the coming year will affect the price of Bitcoin.

For what it's worth, the advantages of allocating a fraction of one's investment portfolio to Bitcoin trump the disadvantages.