Golden Finance reported that JPMorgan Chase Global Market Strategist Jack Manley and Research Analyst Sahil Gauba released "Do Cryptocurrencies Deserve a Place in Portfolio Construction?" ” report, which states that much of the appeal of cryptocurrencies lies in their potential for excess returns, but even so, challenges remain. While Bitcoin's returns are impressive, it's also very volatile, four times more volatile than the S&P 500. The role of cryptocurrencies in portfolio construction depends primarily on risk tolerance. Cryptocurrencies are inherently unpredictable: there is little visibility into future price movements, and blockchain technology, while exciting, has few barriers to entry, meaning that as new coins with improved functionality enter the market, tokens May become obsolete (and therefore worthless). Therefore, for most investors, any allocation to cryptocurrencies in a portfolio should be kept small enough to ensure that it does not undermine overall portfolio goals and achieves good diversification even in the event of a significant sell-off. change.