I have another buddy who only wants to invest in "value stocks". But enjoys vicariously living through me as a "Bitcoin investor". I have tried to explain to him that trying to store value in stocks, is like keeping all your bills and records still on paper and in the mail. But he never quite gets it.
For those kinds of people, you would think that they should be able to get the idea of a 1% to 10% hedge? So the amount does not even need to be a lot.. even up to my now recommendation of 1% to 25%.
So perhaps some of them believe that us coiners need them to invest, even though we might suggest that if they are whimpy as fuck or even bearish as fuck or even scared as fuck about bitcoin, then they could at least get the fuck off of zero and thereby ONLY invest at a kind of minimum level, such as 1%.
Maybe there is a kind of gambling mentality, and people have difficulties thinking to ONLY invest 1% because what good is that going to do? Well from experience and just looking at the charts, many of us longer time coiners can provide evidence to show that even a 1% investment can end up playing out as a pretty big investment and even outperforming a lot of other aspects of the total investment portfolio to end up becoming a very large percentage of the overall investment portfolio. In other words, it can be quite difficult to find any kind of other investment that provides such ongoingly asymmetric potential, and likely the bitcoin investment thesis is stronger than it was 8 years ago (two cycles).
Maybe an example would help to show aspects of this?
Let's use a 8 year cycle, and let's attempt to figure out what a hypothetical person who had already established a fairly decent set of investments. Perhaps such person was not set for life, but such person figured out that he wanted to allocate 1% into bitcoin over the coming 6 months, so that his total investment in his various investments was $500k, and so his traditional investments were $495k and his bitcoin portion was $5k, and let's even say that the guy kind of screwed up and ended up investing towards the top of the market, so he ONLY got 5 BTC. I understand that most more experienced investors are not going to be so damned locked into buying at the top and failing to invest more, so I am going to describe two kinds of BTC investors who started out with a $500k budget Hypothetical investor 1 only got 5 BTC and Hypothetical investor 2 ended up getting 25 BTC with $10k invested. Both bought their first 5 BTC for $5k (average of $1k per BTC), and hypothetical investor 2 bought an additional 20 BTC in 2015 when the BTC price dropped to $250 and stayed around that price point for most of 2015, so hypothetical investor 2 ended up investing $10k into BTC and hypothetical investor 1 only invested $5k into BTC.
I believe that it is generous to presume that the traditional investment portion of the portfolio doubled and went to $1 million.
If we use $50k as our current price, hypothetical investor 1 had an additional $250k of price performance for his 5 BTC, and Hypothetical investor 2 gained an additional $1,250,000 for his BTC investment. Do I need to explain more? Even the most modest of the two modest scenarios of only around 1% or maybe 2% invested into BTC had ended up causing way greater overall investment portfolio returns. Investor 1 ended up with a total portfolio that was 25% greater $1 million + $250k = $1.25 million. Hypothetical investor 2 ended up with an investment portfolio that was double based on his 2% investment. $1,250,000 + $1,250,000. The BTC portion of the investment was only a small portion, but it way outperformed the total portfolio causing the total portfolio to become way more valuable.
Even if the exact same levels of returns are not likely to be achievable, but there evidence remains quite strong that bitcoin is going to continue to be a good asymmetric investment that can compliment any investment portfolio even with relatively small allocations of something like 1%, even though I currently suggesting that newbies could enter into bitcoin with a target accumulation range of anywhere between 1% and 25% and still likely be good, and of course, each person/institution remains responsible for his/her/its own determinations regarding what level of allocation into BTC would be most suitable to their particular psychology and finances.