Pretty mind blowing stuff. That real-life stories are a good example of how you play this game: you invest what you can afford to lose, and you go for the long run, holding to the majority of your coins. The potential and growth are so huge that by gradually cashing out you can live OK while holding to the vast majority of your coins.
I have developed the concept of "rake", which in this context means the (average) percent of your holdings that you sell, every time the price doubles. This is applicable in the situation where you are unloading the coins. If you are still accumulating, it naturally does not hold.
According to the virgin-money-flow-model, the average rake is 17%, which means that each 1000x increase (consisting of 10 succeeding doublings) dilutes your holdings by 84%, formula: 1-(1-17%)^10.
If you want to play tigher, choose 10% rake for 65% dilution.
If you are OK to play looser, 30% rake dilutes 97% of your coins away, but the remaining 3% are still worth 30x more than all the coins in the beginning.
More about it.
