You know the interesting part of all of this? You’d make profit from all of them. Regarding Bitcoin, we know better now but looking back at 10 years ago, you never really knew what today would be if it’d be an abandoned idea or as huge as we’ve seen it. I’d say that if you have enough money (really wealthy), diversify your investments. Invest in all 3 of them after all, you’ll make profit from all.
If you account for the debasement of the dollar, you likely are not making money in all, especially in real terms rather than nominal terms.
Bitcoin has ongoing good chances to keep up with the debasement of the dollar and also to outperform the dollar's level of persistent, consistent and inevitably ongoing debasement. Good luck if you are investing in that other stuff.
I know that Bitcoin definitely does better (even asides the dollar debasement) but I think that at least, the other investments at least gives some fair gain. If you say it doesn’t because of dollar debasement, that means you’re saying that so far, people who have invested in Gold for the past 10 years has technically earned nothing? Or did I get it wrong?
When ever an asset only has nominal gains and it does not have real gains, then they have not earned (or gained) anything in terms of the cost of living of things that they could purchased, but they did better than keeping their value in dollars.
I am not sure if I will also be around after a decade but it is said that time is likely the safest speculation that Bitcoin will hit a million dollars.
But we do not know how this cycles that keep on changing every time we are on it. It might be quicker for the next few years and cycles to come and we might get too close to it.
I'll hold but I won't miss to sell because that's how it should go and we have to enjoy taking profits.
What do you mean by not so sure you’ll be around after a decade?
He means that when it comes to bitcoin, he is a weak hand, and he does not have confidence in it as an investment that will continue to gravitate value into it.
Most likely he does not understand bitcoin very well, and sure if there is some time in which bitcoin seems that it is losing the strength of its investment thesis, then we could get out of it if we can see that in advance.
if we believe that bitcoin has decently good chances of going to zero all of a sudden or suffering some other kind of sudden crash in value in which we would not be able to get out our value, then we should modify our position size to account for those kinds of possible scenarios.. .that does not mean all or nothing in bitcoin, but still people can choose their position size and some people will end up benefiting more from the ongoing wealth transfer from no-coiners to coiners than others... and your ability to be on the receiving side rather than the losing side may well have to do with your actually having some coin.. Your choice regarding how much of a position size you believe to be a valid trade off, even if you have doubts in the strength of bitcoin's long term investment thesis.
Anyways, Bitcoin will take a longer time to reach that price you talk of. It was easier for Bitcoin when it was worth a lot less than now it is worth as much as $57k. Half a million may be seen as just 10x of the current price, but that’s a lot
Edit: I thought you meant half a million but you get the point.
It is possible, with varying degrees that bitcoin could have a top anywhere between $57k and $2 million plus - of course with varying levels of probabilities for each of the price points, and surely the top of this cycle could help inform what might be the range of possibilities for the next cycle, and part of the benefits of any asymmetric bet is that if you do not leverage, then you are only going to lose, at most, 100% of what you had invested. So it is your choice if you allocate 5% to 25% of your investment portfolio into it (which seems prudent) or some other amount, or not at all.. and then live with the consequences.. and yeah if you don't invest now, then you can choose to invest later, if bitcoin is still around by that later time that you might reconsider the matter.
You know the interesting part of all of this? You’d make profit from all of them. Regarding Bitcoin, we know better now but looking back at 10 years ago, you never really knew what today would be if it’d be an abandoned idea or as huge as we’ve seen it. I’d say that if you have enough money (really wealthy), diversify your investments. Invest in all 3 of them after all, you’ll make profit from all.
Yes, know that all investments are going to prosper if they are given enough time to grow. So investing in all of them will be a perfect idea as long as you have all the resources to make it possible. However, allocate the biggest funds for bitcoin as we all know it’s more capable to give us the highest rate of returns, but still invest with caution. All investments have their definite risks, we just have to know how high our tolerance risk will be.
Of course. One didn’t know better before now. With the knowledge of Bitcoin, of course it should take the higher investment amount since it has done beyond what the others can ever do.
One of the positive aspects of a strong asymmetric bet is that you do not necessarily need to invest a lot in order to potentially benefit a lot, but I still think that a 5% of an allocation is on the low end of recommendable and anything up to 25% is reasonable for a beginner. Of course, anyone can choose to go outside of that range to be more whimpy or to be more aggressive in terms of their chosen allocation.