The traditional 60/40 portfolio, consisting of 60% equities and 40% bonds, has been a staple in portfolio management, offering growth and risk management since the 1950s. However, with rising inflation and increased interest rates, bonds have underperformed, leading to considerations for a strategic shift. Analysis indicates that replacing bonds with Bitcoin in a 60/40 portfolio can significantly enhance returns. Allocations of Bitcoin from 1% to 10% show a substantial increase in overall returns, with a 10% Bitcoin allocation yielding over €70,000 from a €10,000 investment. Moreover, a portfolio with 60% equities and 40% Bitcoin could potentially yield nearly €500,000, demonstrating the remarkable growth Bitcoin has experienced compared to traditional bonds. This shift reflects changing monetary properties of Bitcoin and its ability to outperform conventional assets over time, especially in a landscape characterized by inflation and low bond yields.

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