1. The Role of Crypto in a Portfolio is Unclear
Every asset in a portfolio should serve a defined purpose. Equities drive long-term growth. Bonds bring stability.
But what role would crypto play?
Some proponents suggest Bitcoin could serve as a store of value, even a form of digital gold. Yet the evidence doesn’t support this. Unlike shares or bonds, crypto assets don’t produce cashflows or income. Their value is driven primarily by speculation and sentiment, not underlying fundamentals.
Over the past five years, Bitcoin has experienced dramatic price swings. The chart below compares monthly returns of Bitcoin with global equities. The level of volatility speaks for itself, Bitcoin is anything but stable.
Figure 1: Range of Monthly Returns — Bitcoin vs Global Equities (Jul 2020 – Jun 2025)
Source: Albion Strategic Consulting. BTC data: coincodex.com. Equity data: Albion World Stock Market Index.
In a well-structured portfolio, assets are included for specific, long-term reasons. Right now, crypto simply doesn’t meet that threshold.
2. Putting the Track Record of Crypto into Context
Some argue that crypto now has enough of a track record to be treated as a legitimate asset class. But let’s take a closer look.
Bitcoin first appeared in 2009¹ and was only added to the Oxford English Dictionary in 2014². That’s a relatively short history, especially when compared to the 100+ years of data available for stock and bond markets³.
It’s true that early adopters of Bitcoin experienced extraordinary gains, around 100% per year from 2011 to 2025⁴. But this is a classic case of hindsight bias. A 1.5x leveraged position in NVIDIA⁵ would have delivered similar returns over the same period – yet no one is suggesting such a position represents a sensible long-term investment strategy.
Focusing only on past performance is a dangerous way to invest. It can quickly lead to unnecessary risks and unintended consequences.
Importantly, you don’t need to hold crypto directly to benefit from innovation in the space. Many companies within global equity portfolios are already involved in digital assets:
- MicroStrategy holds over 600,000 BTC⁶
- Marathon Digital Holdings (MARA) holds approximately 50,000 BTC⁷
- Riot Platforms Inc. holds around 20,000 BTC⁸
If digital assets succeed, long-term investors are likely to benefit, indirectly, but effectively, through increased share prices or dividends. A globally diversified, evidence-based portfolio already captures this upside.
3. Complexity Does Not Equal Credibility
Crypto and digital assets are often wrapped in layers of jargon and technical language. This complexity can give the impression of sophistication, but complexity alone doesn’t make something a good investment.
As one observer put it:
“Investors read confusing, jargon-laden articles and become convinced that smarter people than themselves are investing, so they should too.”
Many crypto assets are still poorly understood, even by those investing in them. The risks, ranging from regulatory to technological to governance-related, are significant and evolving.
From our perspective, no investment should be made if the risks cannot be clearly explained and understood.
Evidence, Not Excitement
At Wells Gibson, the portfolios we recommend are built on evidence, not excitement. They are designed to help you capture global returns, manage risk, and align with your Purposeful Wealth.
That means:
- Global diversification
- Low-cost investing
- Focus on long-term returns
Our Investment Committee regularly reviews the financial landscape. If, and only if, crypto matures into a clearly defined, reliable asset class with a sound role in portfolios, it will be considered. But we are not there yet.
Let’s focus on what really matters….
Until then, we remain comfortable with our position. We believe real wealth is about more than money, it’s about financial peace of mind. If you have questions about crypto, your portfolio, or your long-term plan, please do get in touch with a member of our team and have the conversation.
References
- Nakamoto, S. (2009).Bitcoin: A Peer-to-Peer Electronic Cash System.
- Oxford English Dictionary, August 2014 update.
- Credit Suisse Global Investment Returns Yearbook (various years).
- CoinDesk, historical Bitcoin data August 2011–May 2025, based on compound annual growth rate (CAGR).
- NVIDIA stock data (including total return), using 1.5x leverage approximation, Bloomberg/Morningstar.
- MicroStrategy Investor Relations (Q1 2025 disclosures).
- MARA Holdings Inc. SEC filings and press releases (2025).
- Riot Platforms Inc. corporate disclosures (2025).
Important notes
This is a purely educational document to discuss some general investment related issues. It does not in any way constitute investment advice or arranging investments. It is for information purposes only; any information contained within them is the opinion of the authors, which can change without notice. Past financial performance is no guarantee of future results.
Products referred to in this document
Where specific products are referred to in this document, it is solely to provide educational insight into the topic being discussed. Any analysis undertaken does not represent due diligence on or recommendation of any product under any circumstances and should not be construed as such.
The world of cryptocurrency and digital assets continues to attract attention, particularly during times of price surges. With renewed media interest and speculation around Bitcoin and other digital assets, it’s only natural for investors to wonder:
Am I missing out?
At Wells Gibson, we remain guided by the evidence. While technological innovation in this space is compelling, for most investors, there is no need to adjust portfolios in response to what remains a highly speculative, volatile, and poorly understood opportunity.
In this blog, we outline three key considerations when evaluating cryptocurrency as a potential investment.
