So even though I began to employ a kind of strategy of selling around 10% for every doubling of the BTC price, I never really depleted my status of being overinvested into bitcoin because due to BTC's price appreciation and inspite of my continuing to sell on the way up starting from $250, the amount of my allocation to bitcoin went from 13.5% in late 2015 to nearly 80% in late 2017 and then corrected back down to its lows of 45% at various points of 2018 and even the correction of 2020 did not bring my holdings below having around a 55%-ish allocation into bitcoin.. and so even with such practices, I believe that I had some highs that were in the 90%-ish arena, and then maybe currently I am around 75%-ish.. so I continue to be quite overallocated in terms of my original goal of 10%, but then I think that i also could adjust my allocation to 25%, but that still does not cause my 75% to come down unless I sell on the way up, which largely I continued to be quite conservative in my own practices, and I am doubting if I am ever going to really resolve the matter, because I have come to a newer philosophy about letting your winners ride.. even though there is still a kind of underlying justification to be able to sell whenever I want in order to keep the bitcoin allocation into some kind of control.. because I am thinking that the correction in 2022 when we were at our lowest of around $15,479 in 2022, I probably still was not probably not less than 65% allocated in bitcoin as compared with my other quasi-liquid assets in my investment portfolio..
That's a huge overallocation
I am about 23% invested in bitcoin (of my original 5%, and after 20% liquidation in 2021) and this rate above 20% still bothers me sometimes. But I think I am not that overinvested.
There are good opportunities outside crypto ecosystem too (I think even bonds were interesting last year)
I am personally starting to build a small stash of uranium etf, thinking about nuclear energy expansion, and it has been performing quite well.
But BTC still has a better thesis than most assets and I think it will surprise everyone again with new ATHs. I will try to liquidate using this new tool we developed, and I will try to understand this rake strategy too which I didn't read yet.
My policy (since 2002) is to
never invest more than 20% in any one item (in reality, it is usually no more than 5% and at most 10%), BUT
once I invest, I don't re-jig the portfolio to "balance" it. In case of btc, it has grown significantly in %%. I invested in many winning stocks before: AAPL and TSLA are just two examples, but I had a habit of selling them after, say, 10X of my money and OR too much portfolio %%, missing on another 10X as a result. Bitcoin is the first asset where I don't do "balancing" in principle.
Consider me reckless, but since I have work cash flow, future pension and SSec lined up plus IRAs, why not? Nobody got really rich by following the "balanced" portfolio. On the other hand, if you already "made it", I see some benefit in balancing things out. BTW, Warren Buffet is ridiculously overweight in just a few stocks (I believe just three stocks, with one being AAPL, are more than 50% of his entire equity portfolio).