Cryptos to buy now

Bitcoin is the first and most popular cryptocurrency originally proposed in 2008 and subsequently created in 2009 by the pseudonymous Satoshi Nakamoto. A native asset of the Bitcoin blockchain, it is the world’s first currency that is inherently free from the control of central banks. By design, the underlying network is censorship-resistant, permissionless and peer-to-peer with a scarce and programmable native currency (BTC). Bitcoin source remains the global cryptocurrency market leader by price and total market value. We calculated optimal portfolio weights for the S&P500 and Bitcoin based on two criteria: minimum variance and optimal Sharpe ratios. The optimal minimum variance weights of Bitcoin are 2.5% for daily data and 0% for monthly and quarterly data. The higher correlation estimates for monthly and quarterly returns increase the variance by too much for weights to be larger than zero. The optimal Sharpe ratio weights of Bitcoin are 55%, 50% and 100% for daily, monthly and quarterly returns, respectively. The non-monotonicity of the weights is due to a deteriorating risk-return ratio of Bitcoin from daily to monthly return frequencies.