"Starting with 60-40 equity-bond portfolio, which is produced with a risk aversion of gamma=1.5, the optimal BTC allocation is a large 84.9%"
My calculations show that the optimal bet in Bitcoin is still an absolute value of 2.625 Bitcoin, as it allows for sufficient decentralization of the supply among approximately eight million holders (Top 0.1%). After all, the value of Bitcoin as an asset lies precisely in the decentralization of its supply. A simple thought experiment can show that if Satoshi had kept all 21 million Bitcoins to himself and never shared this idea with anyone, the value of Bitcoin would be zero.
discuss
I would completely agree with you on the fact that decentralization of the Bitcoin supply is definitely going to solve the problem out by itself in the future but currently having such giants as Blackrock holding on to such huge bags is a bit scary. Who says Blackrock would not screw the entire market over by pumping and dumping Bitcoin?
My only advice is to hold on to your coin and avoid panic selling. Actually, from my experience, selling on any kind of reason is always a huge mistake.
But the question remains of why are we so concerned about the current price of Bitcoin, which is liable to be manipulated by such huge institutional whales, instead of excited that Bitcoin still has an ocean of untapped potential. Anyone holding even half a Bitcoin is going to enjoy a nice life in the future.