The high volatility of the Bitcoin price has attracted many institutional investors

In an interview with Keiser Report, Morgan Creek Capital CEO Mark Yusko discussed the performance of Bitcoin investments.

Bitcoin (BTC) was the most active performer of the decade. Yusko has previously claimed that any investment portfolio should have a minimum 1% Bitcoin allocation. Max Keizer, for his part, noted that portfolios with a 1% allocation to Bitcoin have outperformed any other types of investments over the past five years.

High volatility of Bitcoin price

Over the past 6 years, due to its volatile nature, many investors have taken advantage of Bitcoin price fluctuations. Therefore, some financial analysts were of the opinion that a diversified crypto portfolio does not offer the benefits that an investor might expect from applying traditional diversification principles.

The high volatility of Bitcoin price is often interpreted as an unreasonable risk for traditional investors. It was also one of the key issues that prevent established investment firms from considering it as a consistent investment vehicle. However, volatility is one of the main reasons why Bitcoin is able to generate phenomenal returns for investors.

But Yusko believes that a varied portfolio, which includes both Bitcoin and traditional assets, provides the best results. In addition, it gives investors more security because the portfolio is not significantly affected by cryptocurrency volatility.

It is worth noting that, between January 2017 and December 2019, Bitcoin offered the best cumulative return (293%) of all investment options. The second place asset was Grayscale Bitcoin Trust, with a yield of 270%.

By diversifying, investors have the opportunity to take advantage of high-earning assets such as Bitcoin and to offset risk exposure by investing in traditional stock indices to generate higher returns