A report published by investment direction firm VanEck on Jan. 29 suggests that institutional investors should allocate a small per centum of their capital letter into Bitcoin (BTC). Per the report, "Bitcoin may heighten the take a chance and return reward profile of institutional investment portfolios." The researchers likewise claim:

"A modest allocation to Bitcoin significantly enhanced the cumulative return of a 60% equity and forty% bonds portfolio allotment mix while simply minimally impacting its volatility."

Return comparison of investment portfolios with and without Bitcoin

Render comparing of investment portfolios with and without Bitcoin. Source: VanEck

Obstacles to institutional adoption of Bitcoin

Among all the portfolios considered by VanEck, the one consistently showing the highest return was the one which had 3% in Bitcoin. All the same, the report explains that Bitcoin's nature every bit a bearer asset and lack of infrastructure linking it to majuscule markets is an obstacle to institutional adoption.

VanEck also claims that Bitcoin can potentially become digital gilt given its scarcity, monetary value and ease of transfer. The researchers admit that Bitcoin is not a currency, but nevertheless has the potential to become one:

"Bitcoin is non quite a currency but most certainly is a money, notwithstanding information technology may get a currency in the future."

An in-depth comparison of the features of the United States dollar, gold and Bitcoin contained in the report also suggests that Bitcoin has more of the features that are desirable from an asset that serves as money than gold itself.

Comparison of the traits of money of Gold, United States dollars and Bitcoin

Comparing of the traits of money of Gold, The states dollars and Bitcoin. Source: VanEck

Many in the crypto community accept loftier hopes for Bitcoin as an investment nugget. As Cointelegraph reported earlier, founder and partner of crypto venture capital letter fund Morgan Creek Digital suggested that Bitcoin recently reaching $x,000 is just the starting time step in its fashion towards $100,000 by 2022.