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Some investors are bullish on crypto, while others steer clear of this relatively new asset class.
But in recent years, cryptocurrency, especially Bitcoin, has gained recognition as a legitimate asset.
Not surprisingly, when BlackRock makes a statement about building an investment portfolio, many investors take notice.
This relatively low percentage indicates that caution is still warranted when dealing with cryptocurrency.
Investors should also be alert to Bitcoins risk.
It may not ultimately achieve broader adoption.
And it remains highly volatile and vulnerable to sharp selloffs, per the report.
As for the benefits, Bitcoin can offer enhanced returns and increased diversification.
Its possible Bitcoins value will continue to soar and push your overall returns higher.
Plus, adding Bitcoin to your portfolio will increase your diversification across asset classes.
However, there are also risks to Bitcoin.
The crypto is volatile, as the report mentioned.
Because of that, its price may rise and fall without warning.
Its also possible that Bitcoin will lose value over time, which could negatively impact your portfolio.
Investing in Bitcoin and other cryptocurrencies is pure, unadulterated speculation, Johnson said.
I put investing in [quotes] because this is not investing, it is speculating.
Should You Include Crypto in Your Portfolio?
Ultimately, you must decide for yourself whether or not crypto deserves a place in your investment portfolio.
For example, if you have alow risk tolerance, then steering clear of Bitcoin makes sense.
Bitcoin or other cryptocurrencies should not be the cornerstone of your retirement plan.
Bitcoin is one of many cryptocurrencies.
But it tends to hold more legitimacy among investors than other types of cryptocurrency.
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