i have and continue to make/modify plans that take into account worse case scenarios, at least as far as i am able. the potential failure of fiat is included in those plans. but, so is the failure of btc.
personally i am quite confident in btc rising in value. but i wont stake our future on just btc. or just fiat. we need to survive either ones failure. and even then its possible both will fail. thats my biggest worry, both go south. but its possible to survive that too, if you have enough things of value that can be traded for whatever is needed.
btc, fiat, physical holdings. one fails, no biggie, but annoying. two fail, well thats gonna hurt but its still possible to survive ok, although it will almost certainly suck a lot. but it still beats being homeless, starving and depending on others. all three fail? well, it was fun while it lasted. hopefully one has knowledge or skills that are in demand.
its not that simple of course, but thats my general view.
Of course, it is good to have various tentative plans for a wide variety of scenarios, but it is also not prudent to plan 50/50 or even betting 5% on an event that only has a .0238495% chance of happening. Each of us should be attempting to be honest with ourselves and honestly attempting to allocate reasonably both upside and downside and tweaking from time to time (as you seem to already be in the practice of doing).
agreed. someone in a country with high inflation or a corrupt/insane dictator will allocate to those categories differently than someone in a more or less stable country. or some place prone to natural disasters that could wipe out vast parts of the land or infrastructure. each one must assign a risk factor and try to allocate/adjust funds accordingly.
now, if i were single, i would have much more of my net worth in btc. but im married now and much more risk averse. single, i did take much higher risks as they only affected me, no problem.. im an idiot, know it, and paid the stupid tax when needed. married, i wont risk our comfortable retirement simply for more possible profit. thats not to say i wont take risks for more profit at all, but much smaller ones than previously. securing our future is the priority. and to me that means more diversification. and i dont mean alts (junk), i mean non crypto. even though that has far less potential dividends, plus has its share of downsides too.
guess i just sleep more comfortably knowing ive done what i can to cover as many bases (to a reasonable extent) as i can.
also, for the record, i think bitcoin is the future of money and storage of value. writing that just in case someone thinks i dont. bitcoin was and is the best investment i ever did. im just somewhat more pessimistic about the world in general as i age. just wait till youre old and decrepit like i am, your viewpoint may change too heh.