'I recommend a very low single-digit allocation' What I find is that people who are using this latest decline as an argument against bitcoin is merely confirmation bias and recency bias, advisors with a preconceived notion grabbing at a unique data point to prove an argument that is specious in the first place. But if you look at the past four years, with a 7x return, you would have a very different perspective. You can easily look at the past nine months and say the 70% decline in bitcoin proves that it's too risky to invest in. You need to look at a more lengthy period of time to reach a more legitimate conclusion.

If you look at a short-term time period like that, and use it as an argument that stocks are risky, too risky to invest in, advisors would say that's an artificial time period. In the early days of the pandemic, the stock market fell 35% in six weeks. RE: That they would not tolerate that sentiment if clients were to express that view regarding stocks. LK: There were many naysayers in the financial advisor community before this, who may take this as proof for what they already believe. This is what innovation is all about, and you need to maintain a long-term perspective and be willing to tolerate this kind of incredible volatility along the way. Even since 2018, even though bitcoin is now down 70% since November, since 2018, it's up 7x - not 7% - 7x. Even though bitcoin has experienced these massive declines many times, it has generated a 40 million percent total return since inception.

Bitcoin expert advisor