(Part 1) Implementing Bitcoin into the Permanent Portfolio
Channel: Marc De Mesel
Date: 2013-06-01

( To see part 2: http://www.youtube.com/watch?v=uAFzKm6f_Ik )

Why I think redesigning the Permanent Portfolio into 20% stocks, 20% bonds, 20% gold, 20% cash and 20% bitcoins makes sense. 
1. Explaining that Bitcoin is very volatile and will make the Permanent Portfolio much more volatile too. This is a disadvantage I am willing to accept. 
2. Debunking counterargument that Bitcoin can go to zero, in contrast to the other assets. This is not true. Bitcoin cannot go to zero, though it can lose 99% of it's value, just like the other assets. 
3. Why implementing bitcoin should be at the expense of all other assets, not just gold. 
4. Arguments of esthetics, beauty and simplicity in favor of a 20% allocation to bitcoin, just like the others.
5. Why the permanent portfolio will become irrelevant if bitcoin succeeds in becoming a mainstream currency.
6. The Permanent Portfolio was initially designed to not just be a protector of capital but also be a grower of capital. However after deducting true inflation and costs the Permanent Portfolio is barely growing your purchasing power. Adding bitcoin to it can change that.