It depends on how much trust you have in bitcoin system. The best hedge you can do is staying as %50 Fiat - %50 BTC i would say.

You will lose your chances to exchange half of your BTU's  for BTC's but you can still have more coins if bitcoin loses value over fiat and that's much likely.

However there is still a slim chance for bitcoin to have no value loss. In this case, you will be having a loss because you are holding FIAT.