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Bitcoin: The New King of Safe-Haven Assets, A New Choice for Robust Portfolio Allocation

When the global economy is in turmoil and uncertainty intensifies, the core demand for capital allocation focuses on "risk aversion" - seeking an asset that can withstand short-term market fluctuations while preserving capital in the long run. In the past, the US dollar, treasury bonds, and gold have always been the optimal risk-averse choices in investors' minds. However, the latest market data clearly indicates that Bitcoin has risen strongly, claiming the title of "king of safe-haven assets".

According to data released by Onramp, a Bitcoin financial services company, Bitcoin has significantly outperformed other types of assets in the past seven global financial market crises. Since 2020, whether it is the outbreak of the global pandemic, the escalation of conflicts between countries, the adjustment of domestic tariff policies, or nationwide banking crises, Bitcoin has consistently ranked first among various assets in terms of 60-day return rate after each negative financial event, far exceeding the S&P 500 Index and gold, proving its safe-haven value with its strength.

It should be clear that this does not mean investors should blindly follow the trend, sell their existing assets, and invest all their money in Bitcoin - such extreme actions are neither rational nor responsible. However, it is undeniable that completely excluding Bitcoin from asset allocation is essentially giving up potential profit margins and may even harm one's long-term investment returns. Therefore, incorporating Bitcoin into the asset portfolio and holding it for the long term has become a prudent and reasonable allocation strategy.

The recent Bitwise research report shared by Bitcoin Archive further corroborates the long-term investment value of Bitcoin. The report reveals a significant negative correlation between the probability of loss and the holding period: the longer the holding period, the lower the probability of loss. Specifically, for Bitcoin held for three years, the probability of loss can be reduced to below 1%. In the professional venture capital field, a 1% probability of loss is almost equivalent to "zero risk," providing strong data support for long-term Bitcoin holdings.

The choice of purchase method directly determines the ultimate investment return. A recent viral video provides a vivid example: an investor who consistently purchased $10 worth of Bitcoin daily over the past seven years, with a cumulative total investment of just slightly over $25,000, now has a position worth over $10 million, yielding remarkable excess returns. This also underscores that for assets like Bitcoin, with an annual compound growth rate nearing 70%, a scientific regular investment strategy can maximize returns.

For institutional investors, they may not make daily fixed investments like ordinary investors, but Bitcoin's consistent outperformance over traditional safe-haven assets in previous financial crises has already attracted their great attention.

Data speaks the truth, and the advantage of Bitcoin as a safe-haven asset is beyond dispute - it has become the king of the new generation of safe-haven assets. Only those who cling to outdated beliefs and refuse to accept new information would disregard this irrefutable fact.

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