The Optimal Long-Term Portfolio Share of Bitcoin Is Negative (Or Zero)

From the last section, "Implications", we read

> The lower long-run return of cryptocurrencies, relative to equities, is inherent to the asset class, because cryptocurrencies do not generate any cash flows.

Ether and other proof-of-stake coins can generate income through staking: https://www.thestreet.com/crypto/markets/fidelitys-ethereum-...

Table 1 shows that from 2020 through Feb 2025, Bitcoin daily returns have had a standard deviation of 4.06%, vs. 1.32% for the S&P 500, and its correlation to the S&P has been 0.38. The high volatility and positive correlation make it unattractive for people who are long stocks.