Yesterday, we talked about two economists from Yale who determined the best times to buy cryptocurrency after analyzing their price movements for more than five years. Today, Yale is again in the news – and the economist which determined the prices is again in the spotlight.
Aleh Tsyvinski is an economist who taught economics at the Yale University. According to his recent statement, every investor who believes Bitcoin can perform as well as it did in 2017 should invest at least 6% of their holdings in crypto.
As Tsyvinski said in an interview with the Yale Ph.D. candidate Yukun Liu:
“If you as an investor believe that bitcoin will perform as well as it has historically, then you should hold 6% of your portfolio in bitcoin. If you believe that it will do half as well, you should hold 4%. In all other circumstances, if you think it will do much worse, then you should still hold 1%,”
It seems like the billionaire approach to crypto is very similar to Tsyvinski’s beliefs. As Marc Lasry, one of the billionaire founders of Avenue Capital Group told CNBC last month:
“I wouldn’t say [bitcoin is] completely speculative but it is speculative. It is around 1 percent, and [I invested in bitcoin] a few years ago. I bought a lot more in the last year, when probably the average price of bitcoin was $5,000 to $7,500.”
Lasry’s net worth is estimated to be at around $1.68 billion – 1% of which is invested in crypto. Aside from him, other billionaire investors backing crypto include Galaxy Digital’s Mike Novogratz and PayPal founder Peter Thiel, both of which are said to have allocated a chunk of their net worth in crypto.
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