Crypto: Currency or Investment?A Perspectives Video from Dimensional Fund Advisors

9/27/2021 - By Saltmarsh Financial Advisors

In this video (from June 22, 2021) moderated by Regional Director Courtney Scott, Philipp Meyer-Brauns, PhD, Head of Investment Solutions Analytics and Vice President at Dimensional, discusses the volatility associated with bitcoin and evaluates whether the cryptocurrency has an expected return, can mitigate investment uncertainty, or could be used to meet short-term liquidity needs. He also analyzes the role bitcoin could play in investment portfolios.

We recognize that many of our clients have heard about bitcoin as a new investment option, but know very little about it. While many of the stories our clients hear revolve around the enormous growth within this space, there are a few reasons why we are not currently incorporating it within their portfolio. This video highlights how we evaluate all investment options within a portfolio and use that framework to explain the challenges of incorporating bitcoin into a portfolio.