The 'safest' think one can do with their assets is to be diversified amongst as many different asset classes as is possible. And the more diverse the asset classes, the better. Crypto-currencies, as an entirely new asset class, should be part of every diversified portfolio. The riskiest thing an investor could do is ignore future technologies and movements. Investing is about the future.
Almost every article I read that touches on 'should I invest in bitcoin' comes to the same conclusion: bitcoin is just too risky for the average person to put money into. That conclusion is just such a load of bullshit, and it comes from the people who purport to offer sound advice. If it is risky, just put in a smaller percentage of your wealth. How can any investment be 'dangerous' if you only invest 0.5% of your assets? Many people invest in a larger percentage of their money into scratch tickets.
Bolded... good point. Hear that all the time - "too risky".
Yep. No excuse for stupidity and lack of research. Bitcoin (and uncorrelated assets in general) have been empirically shown to
reduce risk and volatility, when ingested in appropriate doses:
Using weekly data over the 2010-2013 period, we analyze a Bitcoin investment from the standpoint of a U.S. investor with a diversified portfolio including both traditional assets (worldwide stocks, bonds, hard currencies) and alternative investments (commodities, hedge funds, real estate). Bitcoin investment has highly distinctive features, including exceptionally high average return and volatility. Its correlation with other assets is remarkably low. Spanning tests confirm that Bitcoin investment offers significant diversification benefits. We show that the inclusion of even a small proportion of Bitcoins, say 3%, may dramatically improve the risk-return trade-off of well diversified portfolios.
https://dipot.ulb.ac.be/dspace/bitstream/2013/149159/1/wp13031.pdf
