A store of value, a medium of exchange, a unit of account. Bitcoin is all things to all investors, just not at the same time.
The post Investors Are Approaching Bitcoin Entirely Wrong appeared first on LUXUO.

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Bitcoin has been touted by some of the biggest names on Wall Street as a potential hedge against inflation within a portfolio, and that narrative has been conflated with declaring cryptocurrency as an ?investable asset.?

Which begs the question, what is an ?investable asset? anyway"

In general, and according to traditional metrics, an investable asset ought to meet these criteria:

Generate steady, reliable cash flow on a contractual basis, like bondsDeliver earnings through exposure to economic growth or from the creation of products or services that are desired, like equitiesProvide consistent and reliable diversification benefits to a portfolio, with limited correlation with other assetsDampen portfolio volatilityReliably hedge inflation or deflation as a store of value
So how does Bitcoin fare"

READ MORE: Wall Street Blew a Bubble in Stocks, Cryptocurrencies are Next

Cashflow

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Although it?s possible to earn a yield from cryptocurrencies when they are used in staking, for instance in a proof-of-stake process, or as a tool for the provision of liquidity, by most traditional metrics, these programmatically promised yields are often considered a far cry from the contractual oblig...