Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
But, yeah, you are free to invest (or diversify) into inferior assets merely because you are having difficulties figuring out how bitcoin differentiates itself from them.
Wasn't it Warren Buffet who said that diversification for the sake of it likely demonstrates that the person has not done enough homework.
Good luck. You are likely going to need it.
I don't argue that bitcoin is a top asset and the portfolio should contain the overwhelming majority of it. as I understood Warren Buffet was talking about broadly diversified portfolio and he preferred portfolio with high-quality assets but not the only one kind. Wasn't it Warren Buffet who said that diversification for the sake of it likely demonstrates that the person has not done enough homework.
Good luck. You are likely going to need it.
for example, investor could allocate 90% of portfolio to bitcoin and the rest 10% for ETH, SOL, LTC. percentage of bitcoin could depend on appetite for risk. I agree that allocation to dozens or hundreds of tokens looks stupid, but 90% or more for bitcoin shows respect and confidence in this asset and adding 2-3 other top assets to portfolio won't hurt.
Of course, you can do whatever you want, but the idea of diversification for the sake of it, seems pretty retarded to me. especially if you might have some clues about what bitcoin is and unless you have some kind of specific reasons to hold any of those shitcoins..
If they put it on ETH maybe I understand those diversification thing they said on that coin since somehow they can bet few bucks on it and see what's coming around with it in future.
For me its better to deal 100% directly on Bitcoin I can't afford to deal with other risky things and just want to go directly on the top coin in the market.
But also look at this article guys MicroStrategy Files to Buy $5 Billion in Altcoins This decision is quiet intriguing since it seems that they are trying to engage on more riskier option. I just do hope that their decision to invest on altcoins will not cause their collapsed since investing in altcoins for long term is so risky.
Even though I was arguing with the way nikola22 seems to be blindly accepting that 10% diversification into shitcoins "won't hurt," ultimately these are personal discretionary matters, and I would agree that 10% is not really that big of a deal in the whole scheme of things - especially since so many shitcoiners go way beyond 10% and they have so many troubles to actually limit themselves to 10% since there are so many shitcoins and so many talking points that guys could end up getting lured into so then to start to think that maybe they can allocate "a little bit more" into whatever shitcoin is luring them in through talking points or even through short-term performance, since there surely can be extended periods that various shitcoins may well end up outperforming bitcoin.
Yet in the end guys can do what they want, and surely even if MSTR starts to screw around with shitcoins, there could be problems with that, yet if it is merely a small portion of their overall holdings.
I know valuations change too.. so if right now MS
TR is somewhere in the ballpark of $110 to $130 Billion, then $5 billion would only be 5% of their holdings, so even if it seems a bit distracted, it might be distracted within reasonable bounds.. and there could be various shitcoins that might be considered as a trade rather than investment, yet surely any allocation into shitcoins does show a bit of distraction including their potentially questioning if there might be something else or maybe they just want to have space to explore and something like 5% might not be overly exposed - getting back to nikola22's provoking assertion about "it won't hurt" - which I don't really disagree in any material way, so I am likely mostly arguing semantics.
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MicroStrategy, one of the world's largest public companies, has a large amount of Bitcoin in its treasury reserves.
MicroStrategy currently holds nearly. Bitcoin holdings rank 9th among S&P 500 treasury holding companies.
MicroStrategy has amassed $71 billion worth of Bitcoin in just five years. It currently ranks 9th among the 500 companies. The pace at which MicroStrategy is accumulating Bitcoin suggests that it will be in the 2nd/3rd position among holding companies in the future.
Sure. MSTRs ongoing accumulation of bitcoin puts them into a position that they are likely to outgrow those other higher ranked companies even without buying more bitcoin, yet their buying more bitcoin and also using other people's money to buy more bitcoin, puts them into a place in which they are going to highly exceed those higher ranking companies, unless the other companies change their tunes and/or even decide to get aggressive in their bitcoin accumulation.
I agree that limiting the investment into shitcoins as compared with bitcoin to something like 10% is acceptable, yet I don't agree with your assertion that suggests that there is any thing helpful in fucking around with shitcoins.. since you are proclaiming that "it won't hurt" to have up to 10% in various shitcoins.
Of course, you can do whatever you want, but the idea of diversification for the sake of it, seems pretty retarded to me. especially if you might have some clues about what bitcoin is and unless you have some kind of specific reasons to hold any of those shitcoins..
I was once interested in shitcoins because a friend of mine told me that Bitcoin has low profit and low risk, but shitcoins have high profit and high risk, so I thought I would take a little risk and bought Bomi and P Nut, which was harmful for me and I sold it at a ninety percent loss. Since then, I have been reluctant to shitcoins. I thought that if I die, I will die under an elephant, but I don't want to die under a tit. So I decided to buy Bitcoin. From there, the journey of buying Bitcoin began. And I advise everyone to buy Bitcoin. Investing in sheet coins means wasting time and money. It would have been much better if I had bought Bitcoin instead of shitcoins. Bitcoin is the only reliable means of investment. I think buying Bitcoin is the real thing, no matter the price.Of course, you can do whatever you want, but the idea of diversification for the sake of it, seems pretty retarded to me. especially if you might have some clues about what bitcoin is and unless you have some kind of specific reasons to hold any of those shitcoins..
It is probably good for you to have had learned the lesson relatively early, even though you took some losses with your shitcoin involvement.
Historically, there have been a lot of folks that get distracted into shitcoins, and surely some of them learn their lesson and they begin to focus more on (or maybe completely on) bitcoin. Shitcoins will continue to be distracting, which justifies part of my suggestion to make sure to limit shitcoin involvement to no more than 10% of your bitcoin holdings, and try not to cheat in regards to your ways of structuring such shitcoin involvement in the event that you cannot resist shitcoins. I am not even recommending involvement in shitcoins at all, yet I am suggesting if guys cannot resist getting involved in shitcoins, then to limit their involvement to no more than 10% of the size of their bitcoin involvement, which will at least limit the damage and allow them to mostly stay focused on the prize (namely bitcoin), and sure, if they happen to find some shitcoins that outperform bitcoin in the short or long term, then I don't have any problem accepting those sorts of happenings if they were miraculously able to identify such outperforming shitcoins.