The “hurdle rate” for any investment calculation is the roi of Bitcoin
Not the massaged supposed cost of capital as shown by government debt markets
This means you have to ask “why do I own what I own?” when looking at your portfolio
If your asset is purely a financial play & it doesn’t have the ability to outpace Bitcoin then SELL
Sadly we’re emotionally tied to many things we own that fail miserably against this test
Did this with my car and I gotta say you’re right, it was emotional.
I absolutely loved it, memories for a lot of years and it made me a lot of money but every day I knew if I just wanted money it was the wrong thing to own. And I needed to spend to keep it mint. It was a great lesson in the true cost of property, and liquidity
Everything in life is a tuition fee in this sense
Love it. What a journey
Saying that, I’ve very rarely seen a car as an investment given their depreciation
Some classic collectors items do retain value well, but they’re hardly regular use cars
Car went up two or three times the price I paid but in bitcoin terms was down bad! And the money spent on it over the time I had it, I reckon I’d be lucky to break even, even in fiat terms
The key there “in btc terms”
Ofc, one has to distinguish been enjoyment, & store of value. At some stage it’s ok to just have fun & spend some money
But what a day it is when you start filtering how you invest & spend through the lens of HODLing
I get this concept but there are also risks to weigh up. As much as we might hope and expect bitcoin to succeed, there is still a possibility it doesn't, or more likely, that it does, but something goes wrong for me that means I miss out. Such as human error, tragedy that demands cashing out at an unfortunate time, orwellian state interference, etc. And those potential risks give me reason to diversify into assets I don't expect will do as well as bitcoin in the long run.
Totally fair enough. As always, as an investor, you have to make a decision based on the information at your disposal...
Ultimately, re bitcoin, it comes down to depth of conviction, & generally I see a trend "the more you know, the more you buy"
