Of all the bitcoins I have ever bought, I have perhaps been "short" maximum 10% of the previous high coincount. So at least in my case, 90% is in cold storage.

Currently bitcoin's value is volatile as the market is trying to figure out whether Bitcoin should replace gold or not. If the answer turns out affirmative, bitcoin's value will roughly stabilize after more and more of the economical activity will be financed through self-liquidating bitcoin-denominated credit, as outlined in Fekete's paper.

(I wonder if Fekete himself realizes that his work will be applied to make Bitcoin the new gold  )

For anyone interested, I think the upper bound for bitcoin's value is therefore the current Gold market cap, about $7,000 billion. So one bitcoin will not be worth more than $300k. Actually the utility of holding bitcoins when that is reached, is about the same as holding gold right now ( = most people think you are a little stupid, no matter how rich you are).

But to get there, the value must increase. Actually we were (in log scale) half there barely a few days ago. With the bitcoin's long term value appreciation of 25%, we can be there sooner than most of us think. Anything over $300k should be regarded as a bubble, even if we are in a "new paradigm", it does not mean everyone will be able to get rich just holding bitcoins, only the early adopters (i.e. every one who buys bitcoins for significantly less than its fair value of $300k).