Investing your life savings into Bitcoin is borderline retarded and indicative of a low financial intelligence.
That statement is so true it hurts.
So what do you think is a safe/good amount of your savings to invest in Bitcoin? 20, 30 over 50 percent?
The key here is it all depends on how much savings you've got. Most people I know have life savings of less than a year's salary, and don't own any assets. For them, it would probably make sense to invest a lot, >50%, because they could make the money back by living very economically for a few years.
If you have a million dollars in the bank, then it would be pretty dumb to invest >50% of it IMO, I would say no more than 15%, more like 5%
But if you have a million dollars and own 10 houses worth a million each, why not invest 100% of your money? If it fails, sell one of your houses and you'll have your money back.
This is such bad advice. You're advising the guy who doesn't have money to invest a lot of it, and the guy who has tons to invest a little.
No, I stand by my recommendation - It's all about damage control, what you'd have left if Bitcoin failed, and how much the investment
could change your life.
The guy that doesn't have much money benefits a lot more by investing a higher percentage. Lets say they put in 100% of their life savings which is $5,000, and it multiplies by 10 in a year or two, they now have $50,000 which is a life-changing amount of money for this person (considering their current lifestyle). If they lose it all, then they could make that $5,000 back in a couple of years, by saving $50/week.
A guy with $1m is already sitting pretty, so for them to invest the whole million and lose it would make their life considerably worse - it would be a hell of a lot harder, if not impossible, for them to make the money back. Yes, they could turn their $1m into $10m, but this wouldn't better their life that much. After all, they can already buy a nice house, a nice car, and still have enough money to put into low return investments which would pay them enough interest to buy food and clothes.
Geddit?
