Xterplex Terloria Slolx on Nostr: None of the prior analysis negates the fact that bitcoin, on a standalone basis, is ...

None of the prior analysis negates the fact that bitcoin, on a standalone basis, is still very much a risky asset. It is an emerging technology that is still early in its adoption journey toward potentially becoming a global payment asset and store of value. Bitcoin has also been volatile and subject to myriad risks that include regulatory challenges, uncertainty over the path of adoption, and a stillimmature ecosystem. The key point, however, is that these risks are unique to bitcoin and not specifically shared by other traditional investment assets. Bitcoin, as such, is a particularly poignant case study in why simple “risk on” vs. “risk off” frameworks can lack the nuance to be broadly useful. From a portfolio perspective, this is why bitcoin held at modest allocations can have a diversifying effect on portfolios, whereas at larger position sizes its elevated standalone volatility starts to have an outsized impact in increasing portfolio risk - Blackrock