The only problem with your example is that Monero has a much bigger chance of becoming worthless than silver. I would be comfortable holding 100% silver, but much less comfortable being 100% in Monero. In fact I was 95%+ once in Monero, but I wouldn't recommend it to anyone
No, I'm not talking about 100% in Monero. I'm talking about the entire 5% of your cryptocurrency allocation in Monero. 100% of 5%. (1.0 * .05).
Let's just say your entire investment portfolio is $100,000. You decide that you want to put $5,000 in crypto. You have to decide what part of that should be XMR and what part of that should be BTC. If you think BTC is going to rise against XMR, maybe you will put the entire $5,000 in BTC.
In that scenario, you will be thinking about XMR's price in BTC, not in dollars. Because you want to know how to allocate the $5,000.
5-10 % is roughly the amount of entire wealth I am holding in crypto in general out of which a certain additional percentage will be allocated to XMR when the price is right (in terms of btc-XMR) for me, and such point is 0.001, as long as that's not the case I am getting interest on both XMR and BTC in Polo.
I think XMR is too young and immature project to be all-in it right now (the same applies to BTC also). The immaturity of a currency can be seen in the extreme volatility (like 5-10 % per day). As time passes, I think the volatility will drop (due to takers in dump and sellers in the pump)... However, this might take years rather than weeks or months.
I hold Moneros so I am also happy if it pumps but currently I see dumpage more probable than any meaningful pump.
Most of my wealth is bringing me more money, I am a huge believer and lover of passive income. Passive income is the ultimate way to become a millionaire and when it is achieved, it maintains the status due to positive cash flow unlike winning in lottery which only brings more misery as the money management skills are not trained.
