Just adding 1% of BTC to your 99% S&P500 portfolio has been found to give you 43% greater returns and on average a 1.31% better yearly performance.

For us here the answer to the question of a “correct“ allocation of assets and how Bitcoin (or other Crypto) can be put into it may be obvious, Bitcoin is a very good addition to your portfolio and allows for better diversification even if you have a stocks, real estate or bonds portfolio. But for many stock traders that is not obvious, they are still very hesitant when it comes to thinking whether they should add BTC in and how much it should make up of your portfolio.

To answer that question a Crypto Market Analyst at Bloomberg made a thorough analysis of the effects on a portfolio from a S&P500 if he/she puts 1% of the portfolio value into Bitcoin. Here are the fascinating but so shocking results:

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Charts made by Jamie Coutts

Since 2013, the same portfolio with just 1% of its value in BTC would boost the whole performance by 43% in comparison to a 100% stocks portfolio. Many may say that since 2013 BTC underwent one of the biggest growths ever, but still you should remember that it was just 1% of the whole portfolio that could move it a whole 43% up, which is indeed a lot.

Also annually BTC has caused an average 1.31% excess return, meaning that even the multiple years of bear where it went down something like 70% in just one year did not cause much a dime in the whole portfolio.

This may be an extreme research of 1% BTC and 99% stocks but it does give a confirmation even to many doubters from the stock markets that Bitcoin and all of Crypto have through the year actually become an assets that is nearly a necessity in your portfolio. All of that in just about 13 years of history in the mainstream. Quite an achievement to see the rise of a new asset-class on this scale in todays competitive environment.