Good to see the response wasn't at all anti bitcoin. That's quite the win in itself. But 5% allocation seems pretty low for someone who has high conviction. Plus it may have been helpful for them to clarify what a 5% allocation actually means in the context of them also being leveraged on their home loan investment.
Discussion
5% of available investing dry powder.
95% diworsification
normies naturally still scared of volatility 💀
I figure if you own a home and have a dirty great big home loan (as is the tradition here in NZ) then you're already super over weight invested in the property market, even if you had $50k in bitcoin like that person asking the question in the article.
To me the property is the big risk not the bitcoin. But I guess you could argue that risk reduces if you reduce your home loan size. So to me it's more a question of how much can you afford to invest in any other things besides your house, without risking going underwater on your home loan.
And that's going to come down to how much equity you have in your house relative to the property value, combined with your ability to service your home loan.