My approach for a long time has been to diversify my portfolio (a point Colbee seems to think is a stupid approach in another thread), so I have lots of different investments (active and passive) around bitcoin-land. Current BS&T exposure is 20%.
You misunderstood me. I don't think diversifying is stupid. I actually fully diversify mine also.
I was just saying that your exposure to PPT is the same as your exposure to BS&T, because the risk scenario is the same. If pirate defaults, you lose both your BS&T deposits and your PPT insurance fund. So if for example your exposure to PPT is also 20%, effectively 40% of your portfolio is at risk of pirate defaulting.
I apologise for mis-representing your comment. I also know that you diversify your own funds.
My exposure to PPT is probably just 640 coins that I have lodged in the insurance fund, so that would take me to maybe 25% if I wanted to count it up.
What I was saying is that my decision would be to not invest that additional block of coins directly in Pirate's BS&T, because even thought it might return the same percentage, it needs to have some other elements factored into it.
I suppose the other issue is if you believe all of BS&T deposits are equal.