Part 5/8:
The discourse doesn’t stop with Bitcoin and Ethereum; the inclusion of other cryptocurrencies like XRP brings complexity to the analysis. Despite XRP's recent price spikes, which might entice short-term traders, MPT found that both the Sharpe and Sortino ratios were maximized at 0% allocation for XRP. This could indicate that, despite its recent performance, XRP has yet to prove itself as a solid long-term holding compared to Bitcoin and Ethereum.
Similar conclusions can be drawn about Litecoin. Analysis indicates that over time, Litecoin has not held its value against Bitcoin, with significant declines observed since its peak in 2017.