Are you aware that you are trying to rationalise against something that you are ALMOST doing? (there's not much difference between 90% and 100%).
I don't know if the price will go up or down.... just making a point about something I find a bit incoherent.
I think that you are missing some points, possibly.
BTC constitutes less than 30% of all of my quasi-liquid investments, and within my BTC portfolio, I buy BTC on the way down and I sell BTC on the way up, and currently within my BTC portfolio I have about 90% in BTC and 10% in dollars. That can still add up to a lot of funds in dollars.
If BTC prices go down 50%, I will still probably have nearly 98% of my funds in BTC, and I try to never run out of dollars in order to buy BTC on the way down (so I allocate small portions to continue to have dollars and kind of anticipate up and down volatility, rather than straight down). Further, if BTC goes up 4x, I will still likely have more than 85% in BTC.. It is like raking off the profits, but still having lots of BTC and end up having lots of dollars too.
Funny how it works like that. I don't think you can accomplish anything similar with your investment by having 100% in dollars? makes no sense to me.
Sure, I could allocate in different proportions, but my system seems to work pretty good, and it was even working good when my BTC balance was floating between 93% and 98% - however, recently, I had some of my own issues that caused me to have my current 90% allocation, which is a bit more lopsided towards dollars than my overall preference. I am constantly selling on the way up and constantly buying on the way down and reconsidering - which direction to tweak - but I do not take radical moves such as selling anymore than 5% at a time, even though I could foresee maybe selling a bit higher of a proportion if the market might seem to call for such.
I understand what you are saying, and in fact it is very similar to what I do. But again, it's not that different to what that guy says he did. Only a 10% different in the betting to the upside or downside.
So basically you are hedging around 10% and he is hedging 0% of the funds allocated to Bitcoin investment. In the end what really matters the most is if you are right or wrong on your bet. Other than that, it's just a 10% difference. Also, most people can decide to allocate additional funds to Bitcoin if deemed appropiate.