Is 40% to 70% allocation an Over-allocation into BTC?
I believe that my current allocation into BTC is about 75%
Yep basically thats how becoming over balanced would work out.
When I invested 10% - 15% of my quasi-liquid assets into bitcoin, it took me a bit more than a year to reach the lower levels of that allocation, and I was NOT investing more than I felt comfortable in losing. In other words, I spread out my entry into bitcoin in order to feel comfortable with me reallocation.
My other assets that were 85% - 90% of my total have not gone down in value, and they have gone up in value, too, but the bitcoin proportion has gone through the roof.
I don't even feel close to being over-allocated in bitcoin, even though currently, it does represent about 75% of the value of all of my total quasi-liquid investment capital.
Furthermore, I believe that my strategy to buy BTC as the price goes down and to sell BTC as the price goes up, causes me to feel additional comfort in my choice to keep my allocation without feeling stressed - and even the approximate 25% of my other investments seem to be enough for me to live decently comfortable on, if necessary... so my BTC (even though it seems to be a really large allocation) seems to be a kind of icing on the cake... surplus that is just subsiding there.
I generally say 1% in gold helps alot, its heavy it counter balances alot :p but most people over estimate their free capital.
I specifically chose not to invest in gold because I did not want to have its storage costs and its lack of mobility. So, I don't see why investing 1% in gold is going to help me to feel any more secure when I don't feel insecure at the moment.
By free I mean you have it to save for like ten years as capital not money before a bill comes due.
Some people who have already dealt with storing gold might feel comfortable with holding some gold.. sure. Property ownership can hold some of that similar concrete value, too, if you feel comfortable having a certain level of being tied down or some of the possible maintenance costs associated with property. I already have some property, too.. that surely is not very liquid, so it is partly already included in my 25% of non-bitcoin assets.
Some dont subscribe to the idea of capital allocation and balancing so thats really upto the individual.
Of course, there is a lot of individual variation, also in terms of how mobile an individual might want to attempt to be.
Taking more risky routes could pay off but the point is to avoid the risk, also thats losing some of the gains quite possibly
Risk? Like what? Putting some value in alts? Maybe some day, but likely not for me.
I agree that any of us likely have to keep our minds open to some investment types that might cause us to feel more comfortable, and there is a lot going on in alts that could, someday, cause some motivation to put some value in the direction of various alts.