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Even if you accept that they are uncorrelated textbook Markowitz would give you a very small allocation to crypto since the volatility is so high.
by hendzen 8y ago
Even if you accept that they are uncorrelated textbook Markowitz would give you a very small allocation to crypto since the volatility is so high.
- kgwgk 8y agoOnly if the expected return is enough to make it optimal.
- brokensegue 8y agolotto tickets are uncorrelated with most of my assets but i don't hold them for the reasons you cited. the OP's argument about correlation is mostly bunk since the real debate is about expected upside which is the whole argument to begin with. if bitcoin is a store of value like gold then don't hold it in your portfolio for the same reasons you don't hold gold (it just sits there). if it's a currency then don't hold it for the same reason you don't hold cash (it just sits there).