Bitcoin for the Individual Investor: A New Perspective
Everyone tries to accumulate more or less for education, retirement, future for the sake of opportunity. This can be done by purchasing regularly from different financial instruments or by using individual pension or accumulation accounts provided by cumulative life insurances or banks.
In general, investment specialists recommend that investments be made according to risk perceptions of individuals. In general, they communicate the preference of long-term accumulation targets and the balanced distribution of the ideal investment to the different investment instruments. When diversifying, it is recommended to select as many tools as possible, such as stocks, foreign exchange, gold and real estate, especially fixed income investment instruments such as bonds and bills.
It is unlikely that investment experts trained in the current financial system will make different recommendations from conventional investment instruments. This is why large banks, portfolio management companies’ reports do not see Bitcoin or other alternative crypto-parcels investment proposals. Conventional investment specialists recommend investing and perhaps known tools that have been used for perhaps 100 years, perhaps for over 200 years, while managing risk perception. Thus the risk taken for the investment can be at least foreseen for them.
However, when we think of the development of mankind, every decade in the 21st century, perhaps 100 years ago, costs scientific development. We can think of this as the accelerating effect of the scientific development of the cumulative increase of the most basic causal knowledge. From this point of view, we can compare an investment instrument that has been used for 100 years and an investment instrument that has basically developed in the last 10-20 years. Bitcoine investment may be at high risk for conventional investment professionals today, but it does not mean that there is a high risk, as electricity research is accelerating at the beginning of the 1800s, steam power trains are seen as risky, or if investment in mobile is risky in the 1980s.
It can be said that Bitcoin which started in 2009 and the crypto-money that came after it have become an important investment vehicle with the total of 11 billion dollars today. It can be said that the value that has increased in the last 7 years, its increasing usage every day, the new investments made every year, and the reflection of the first 7 years for Bitcoin offer quite positive opportunities for the future. For this reason, it is beneficial for individual investors to include crypto-parallels such as Bitcoin in the investment portfolios they create with conventional investment instruments.
What this rate should be, in the case of conventional investment experts, can be considered as the risk appetite rate of the investor. However, the distribution for the ideal conventional investment portfolio is 30% bond-bond, 30% dividend share, 15% gold, 15% foreign currency, thought to be 25% bond-bond, 25% , 15% gold, 15% foreign currency and 10% Bitcoin or crypto money. So basically we can suggest that investors ideally keep 10% of their investments in Bitcoin and similar crypto-currencies. If the risk appetite is low, this rate can be kept around 5%. However, we can say that every bitcoin and crypto-parallel investment in every way will be positive in the long run. If investors are more appetite for investment in innovative investment instruments, we can think of 20% by taking gold and foreign exchange rates below the 50% of the bond and equity ratio. As a result, Bitcoin is now an investment tool that should be in the portfolio of every small or large investor and every day it becomes clearer. Who knows, maybe someday, today’s conventional investment experts will recommend Bitcoin and crypto-money as an investment tool.