Once a crypto skeptic, Bernstein Research\u2019s co-head of portfolio strategy now says bitcoin should have a place in investors\u2019 portfolios.\u201cI have changed my mind about bitcoin\u2019s role in asset allocation,\u201d said Inigo Fraser-Jenkins in a Monday note to clients.His take comes as the coin reaches new record highs and has seen year-to-date gains of over 160%.But bitcoin\u2019s most recent rally isn\u2019t exactly what made Fraser-Jenkins change his mind. The strategist explained that the coronavirus pandemic has changed the policy environment, debt levels, and diversification options for investors and that this has all made bitcoin an attractive asset.The pandemic has resulted in increased fiscal expansion and a higher likelihood of inflation and tax increases. These policy factors will increase the demand for bitcoin, Fraser-Jenkins said.However, he also acknowledged a paradox that could hurt bitcoin\u2019s continued rise:\u201cThe greater role that governments will likely play in economies makes cryptos potentially more appealing. These very same forces also may hinder crypto. If they get in the way of policy implementation, then governments might seek to constrain them,\u201d he said.However, Fraser-Jenkins doubts that governments will outlaw cryptocurrencies. He said that in order for this to happen, cryptos would need to get in the way of reflationary policy efforts from the government. At the moment, cryptos are too small to have an effect like this, said Fraser-Jenkins.He added:\u201cThe attractions of cryptos are what also make them potentially an annoyance for policymakers. Cryptos do have a place in asset allocation\u2026.for as long as they are legal!\u201dFraser-Jenkins also changed his mind on bitcoin because the data on the cryptocurrency has changed since three years ago. The strategist said that bitcoin\u2019s volatility has significantly declined in the last three years, which marks it a more attractive store of value. Also, the relative volatility of bitcoin to both gold and\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Once a crypto skeptic, Bernstein Research\u2019s co-head of portfolio strategy now says bitcoin should have a place in investors\u2019 portfolios.\u201cI have changed my mind about bitcoin\u2019s [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2894"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=2894"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=2894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=2894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=2894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}