South Africa
When comparing the crypto market to more established asset classes in market capitalisation, the relative growth potential of crypto becomes clear. Crypto comprises less than one percent of the total global invested capital. As a future asset class, crypto benefits from the future technological growth of Blockchain and related disruptive innovations.
The potential exists for enhanced returns by including a small allocation (five percent) of crypto in a well-diversified portfolio. In utilising risk-related allocation criteria, the risk of drawdowns through negative price movement is substantially mitigated when assessed on a portfolio, rather than asset class level.
Comparing the risk-adjusted performance of selected asset classes, crypto is seen as a top-performing asset class over a long-term investment cycle.
