Investors wanting to know how much to invest in cryptocurrency will get only limited guidance from star investors.
Ray Dalio, Bridgewater Associates’ founder and CIO, says bitcoin and ether contribute to a portfolio’s diversification. Thomas Peterffy, founder of Interactive Brokers, owns some cryptocurrencies but says he is sceptical about their long-term value. And in April, Warren Buffett told a Berkshire Hathaway shareholders meeting that he would not buy bitcoin at any price because it does not produce anything.
Could mathematics be more helpful? Some well-known quants believe it could – up to a point. They have been using traditional asset allocation models to address the question of how to size crypto bets and have come up with some surprising results.
A research paper by BlackRock says the optimal allocation to bitcoin…
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