This could well have been written about me.
I'm not saying that it is always absolutely wrong to have 90% of your assets in BTC or whatever, but it should be because you are intentionally choosing to do so, not because the price got away from you and you never really considered that you now have 90% of your wealth riding on one thing.
https://www.reddit.com/r/Bitcoin/comments/7gi55s/dont_invest_recklessly/I'm spooked again.
So, theymos is now advising
those of us who went 50% in on Bitcoin, and are now nearly 90% in due to a rising Bitcoin, to sell 45% of our BTC stash, in order to return to the initial BTC/total investment of 50%.
I respect him, but can't help but wonder if that is a good piece of advice, or a borderline FUD call...
Just a typical diversification advice. Don't invest more than you can loose etc.etc..etc...
Sure, the "don't invest what you can't afford to lose" advice is good and should be followed by all but the most adventurous. But if you've already applied it when you invested initially (at 50%), then it still holds true now that you're at 90%, so you can still be adventurous without the risk (well, you're only risking your current gains).
If you have enough to lead a happy, comfortable life if Bitcoin goes to zero tomorrow, then theres nothing wrong with the vast majority of your wealth being tied up in Bitcoin.
Of course, it would be sad to live poorly and in misery just to keep a big BTC stash! But if your life was already OK before investing your 50% on BTC, I don't see a good reason for returning from 90% to 50% just to secure the profits. It's a risk that many of us are willing to take. If BTC goes to the moon, all the better for us. If it drops to zero, the initial investment was small anyway, so life goes on as normal. That's the way I approach it.
I've rephrased my original post, removing the FUD part, as I feel I was too harsh on him. It
is very possible that a huge bear period will come, and we may well lose more than 50-80% of our BTC's current value. But even at that point, there's still profit to be made for many of us, especially the very early adopters.
In short, personally, I'm planning to liquidate half of my BTC stash at the time when the fiat value I will get is enough to allow me to quit my job and pursue an independent career in my field. The other half I will keep, in the hope that BTC will eventually become something much bigger than it already is.