Data indicates that adding Bitcoin to a portfolio of stocks such as Berkshire Hathaway, Microsoft, JPMorgan, and BlackRock could have produced higher returns than each one of them individually. According to independent market analyst Alpha Zeta, including BTC to the Rat Poison Portfolio - with a 2.5% yearly allocation - the portfolio's returns stand around 16%. During bear markets, the crypto's low correlations with the stocks might help to reduce portfolio losses.

Bitcoin's scarcity (21 million BTC, with an increasing deflation over time) and its potential to offset fiat debasement, have increased its popularity amongst investors. The number of non-zero Bitcoin addresses has raised from 2,500 in 2009 to over 45 million in 2023 - per Glassnode.

However, despite the crypto's success, Warren Buffett - the Legendary investor and chairman of Berkshire Hathaway - still sees no value in Bitcoin, which he called rat poison squared. He believes Bitcoin is just a gambling token, since it doesn't have any real intrinsic value. But he also maintains exposure in the broader crypto market, as his popular investments include Nubank - which focuses on providing crypto-related services in Latin America.

Since Bitcoin's market debut in January 2019, it has outperformed Berkshire Hathaway's portfolio by more than 320,000%. Even when it is currently down nearly 60% from its record high of $69,000 - set in November 2021 -, its YTD performance is +100%.

Ultimately, the evidence indicates that, even with the extreme price volatility and unpredictability of Bitcoin, it could be a good hedging strategy for investors. Available data shows that, by allocating say 2.5% of their portfolio to the digital asset yearly, they have the potential to boost returns, while reducing losses generated by other safe-haven assets.



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