In contrast to popular belief, Bitcoin is a safe haven which can reduce portfolio risks significantly, if adopted the right way.The stock market is at record valuations, which has always been followed by negative five-year returns. Bitcoin is an interesting asset to hedge your portfolio against this (beta of 0.22).USD loses a lot of its value over time due to the growing supply of money by central banks. Given the fixed supply of Bitcoin, this asset hedges against this devaluation.A new Bitcoin rally might just have started as a consequence of its Halving in May. The prior two Halvings were followed by a 12824% and 3103% gain in two years.I believe that buying Bitcoin for 3% of your portfolio with a vision of holding it for five years might be a good strategy. In the worst case, it decreases your portfolio by 2.24% and in the best case it increases it by 150%.
