Does Bitcoin have a place in a pension scheme portfolio?

Bitcoin has emerged as one of the leading cryptocurrencies of our age. Its popularity has been boosted recently with the endorsements of leading industry figures such as Elon Musk, meaning you could now use it to buy a new Tesla. With this popularity has come spectacular investment performance, 170% pa over the last 5 years. There are now examples of multi asset funds that are investing in Bitcoin on behalf of UK pension schemes. With such eye watering profits, trustees may wonder whether there is merit in making an allocation for their scheme? 

To answer the question of whether Bitcoin has a role in a portfolio we need to know what it is and how
it works. From there we can consider what purpose it might serve as an investment.