“We ran simulations for the traditional 60/40 portfolio (US equities and bonds) as a benchmark, comparing it to our own 60/39/1 portfolio which included 1% of Bitcoin at the expense of bonds. This shows an excess return of 10.58% (1.32% annualized) over the backtest period (2015-2022). Most notable is the increase in risk-adjusted returns: the Sharpe ratio improves from 0.604 to 0.664 while the maximum drawdown hardly changes. Although an improvement, the 60/39/1 portfolio still underperformed the level of M2 debasement over the period by 4%.”