Bitcoin (“BTC”) has received a lot of attention of late, and many suggest that it can play a similar role to gold as a store of value and inflation hedge. In this short note, I’ll take a look at how BTC works in a “toy” portfolio with two other assets…

I thought it would be interesting to look at a well-known technique known as volatility targeting or management and see if it can add value to a long-term allocation to cryptocurrencies. What is Volatility Targeting? Volatility Targeting or “Vol Targeting” is a technique used to attempt to keep the volatility of an investment or…

Active and Passive Approaches In “Bitcoin Vs. Inflation”, I looked at how a small investment in Bitcoin (“BTC”) would interact with an “inflation hedging portfolio” or “IHP” of Gold and TIPs. Many investors view broader commodity investments as a way to potentially offset inflation risk. Here we will investigate how…

Portfolio Construction for Hodlers — Introduction Ray Dalio, the founder of Bridgewater Associates, recently made the following comment on cryptocurrencies: “…You want a properly diversified portfolio… Question is… Do you have enough diversity of these alternative currencies?” This is a big question and merits a lot of research. I have limited space in this short article…