Most people’s net worth in fiat terms is kind of fake.
If you’re 100% bitcoin, you are liquid.
That makes your net worth 10x more valuable in fiat terms imo.
Discussion
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Most people's net worth is only accessible if they get permission to during business hours and need to wait for a bank transfer.
The thing is, the way my bank account is set up...
i think 30-40% if you are a risk taker and fully convinced.
some people still need to make payments. if you do not live in el salvador
or in lugano you will need fiat. another thing is that bitcoin does not pay any income. if it goes to 5 million straight away, this issue will disappear but with the recent clown movements it is not a replacement for a good income.
Capital gains
I respect your conviction but having max net worth in an asset that the us government is fighting is scary. I respect your conviction.
The fed is materially trying to make every investor poorer and succeeding. At least with bitcoin you can’t be trapped like a rat.
Agreed. It takes a real mind shift to have the conviction you do. Fear is something they teach us. Protecting wealth isn't.
Fear is the mind killer
But what about my risk management
There’s only one trade in modern markets. How you choose to put it on is up to you.
I wonder how much of your thoughts and beliefs are tied to the happenstance circumstances of your entry into bitcoin vs others. From my very possibly faulty memory from podcasts, you purchased many bitcoin over 6/7 years ago. And have sold many along the way (for a house is one specific example iirc). You are likely a millionaire many times over with whatever coins you haven’t sold along the way.
Now compare that to someone who learned of bitcoin in the last 2-4 years. Perhaps they have a liquid net worth, through diligent savings, of 300,000. Is buying 10 btc with that savings the right call? It’s a much tougher decision when it’s all of your net worth to buy a “small” amount of bitcoin. While your experience was one of buying perhaps hundreds of bitcoin for a relatively smaller % of your net worth.
Hopefully bitcoin continues its growth upwards in price. Not sure it will at the same rate as it did over its first decade, but I am betting on it increasing dramatically.
Overarching point though is that your conviction is because you’ve been made rich and iirc retired off your bitcoin windfall. So your position is of course biased by the timeline of events you experienced, which likely will differ from someone else entering the space later.
Please don’t take this to be a, oh you’re just lucky response, it isn’t that at all. Nor is it one where I don’t understand the pain of hodling through the 80% drawdowns, I’m personally in my second one. It is hard, but rewarding. But not for everyone.
It actually gets harder to HODL, not easier the longer you go.
Surely you must have peeled some off your stack to satisfy short term human desires/needs (house, car, etc…).
While it gets harder, that’s only logical because humans have a finite lifespan. Money (aka bitcoin) is a way to buy real life goods/services, it has no intrinsic value unlike an apple I can eat.
As you get older, and closer to death, it makes sense for one to buy real world goods as opposed to saving for some payoff in the future as the future has already arrived for that individual.
The answer to your question if it’s the right call to buy 10 BTC with everything you have is directly related to your understanding of Bitcoin.
If you understand it it’s the right call because you won’t shit your pants and sell when your 10 BTC are suddenly only worth 150.000 shitcoins.
If you don’t understand Bitcoin it’s the inverse.
Hmm I don’t know if that’s entirely true. You need to look at other factors like living expenses and cash flows because those relate to your volatility tolerance.
If the ten bitcoin are all your assets, you must sell a small piece weekly/monthly to pay your bills (assuming no other fiat cash flow). I’d argue for someone in that situation, having a hodl forever stack and then using some portion of the 300k for living expenses may be more logical.
Fair enough.
My assumption was steady cash flow
BTC has some major advantages over gold. Gold will end the Fed.