I should note that when I said you wouldn't want much of your wealth in fiat, I was speaking from the point of view of being afraid of being too heavily invested in Bitcoin. Like the situation where you have a $1 million in Bitcoin and only $20,000 in fiat. If Bitcoin somehow fails, you instantly become a meek peon again, financially. So you'd put some decent chunk, like maybe half, into dollars so that in case of Bitcoin failure you still have half a mil in the bank. That's what I guess most smaller investors imagine they will do if they win big in bitcoins.
This is interesting... I have far less money than your example states, but my BTC/fiat ratio is roughly that.
Of course I'm afraid for Bitcoin to fail and to lose almost all of my monetary capital and it's hard to resist the urge and pressure (well, not pressure, but suggestions) by friends & family to convert more funny money to fiat.
Fuck it, if I had thought that way over the course of the last couple of years, I would have only a low fraction of the capital I have now.
My real capital is my skills and friends anyways, so I'll keep on taking the risk and holding on to these precious bitcoins.
As long as cryptocurrency succeeds in any meaningful way, we all live in a better world regardless of personal wealth.
But I'm saying even in that scenario, with those concerns, it's still not very attractive to put half in fiat, or even a third in fiat. Because there are other failures to worry about besides a catastrophe in Bitcoin. There's inflation, wrongful imprisonment (or if you're a bad dude, rightful imprisonment), deportation from your country of residence, other freezing of your assets or haircuts or fraudulent activity on your account or run on your bank, making a mistake in your filings, divorce losing you half your stash, etc. Why do anything so risky as to hold large amounts of fiat??
I conclude: Bitcoin is the safest place to be, especially in uncertain times likes this.
