Bitcoin Forum

My question now is that how many % of your disposable money have you already in BTC?

Is 1/20th too small?

To be exact, I bought them directly from a BTC exchange - BtcChina, instead of mining hard all day long with the sophisticated equipments.

My question now is that how many % of your disposable money have you already in BTC? Is 1/20th too small? thanks.

Around 2%  

for me its about 70% gold, 25% silver, 5% bitcoin

So you are a sensible person! :)

Around 2%  

Bitcoin may crash tomorrow.  Or it may make us rich (no, I don't really believe it will, but it could happen).

Until that happens, it is a fun and elegant experiment.

Sounds about right, if you don't mind me asking do you have the money for metals in bullion or futures?

If you drink two a day and buy them from a machine how many coins could you buy in a month with that money?

10.6

I have about 1% and I am a big believer in Bitcoin. I might eventually go higher.

People with 5%, 10%, 50%, or more need to learn how to manage their money better: they are exposing themselves to a lot financial risk, or they don't have nearly enough savings, or both.

If they can't afford to lose it then yes. However, the fiat system currently discourages savings (and encourages consumption and debt). Most people have lots of debt with little to no savings... If you have savings at all, in general, you're doing quite well.

To me, having only 1% in bitcoin sounds extremely risky. You run the risk of missing out big time if bitcoin takes over the world.

No, I don't think it's risky. I think having 0% is.

Bitcoin is at an unbelievably early stage, still. There are only 21 million bitcoins, yet the world population is over 7 billion. Bitcoin doesn't need to take over the world. It can just make a tiny tiny dent and have ridiculous ROI. I've stated before I think having as few a 10 bitcoins can make someone a millionaire in fiat terms (that means 1 BTC = $100K). That currently costs about $100.

You're probably right.

However, I personally believe that becoming a millionaire, when you could have become a billionaire, is risky.

Thanks a lot for all your replies upstairs. I'm also a PM stacker and my portfolio roughly includes 10% in gold and 40% in silver - all of them in physical bullions - as well as 25% or so in realties and 15% in numerous investments like antique items and the Paper Silver (which is most liquid) etc., with the remainder 5% in Bitcoin. Now I am considering whether or not I should sell part of my Paper Silver (a trading protocol sponsered by a big bank to closely following the silver price) position and then use the money to add more bitcoins to my present holdings. What's your opinion? Your comments shall be greatly appreciated.

I've stated before I think having as few as 10 bitcoins can make someone a millionaire in fiat terms (that means 1 BTC = $100K). That currently costs about $100.

To me, having only 1% in bitcoin sounds extremely risky. You run the risk of missing out big time if bitcoin takes over the world.

I buy BTC each month for 5% of my total income.  Can't buy more, but the 5% of all income I use to buy BTC is investement that I know can be a total lost overnight.

IMO, BTC will appreciated a lot more, I mean incredible appreciation, within 10 years, they are very young and strong.. I'm willing to bet BTC will win over any other mean of investment in a ten year time frame.

You're probably right.

However, I personally believe that becoming a millionaire, when you could have become a billionaire, is risky.

If they can't afford to lose it then yes. However, the fiat system currently discourages savings (and encourages consumption and debt). Most people have lots of debt with little to no savings... If you have savings at all, in general, you're doing quite well.

If bitcoin went to da moon tomorrow, those who heavily in BTC would become as rich as the Tsar.

The downside is very little.

I think the system still has to prove itself for several years in order to be considered 'safe' (and even then you still have to watch developments like quantum computing).

I have the metals as physical bullion. IMO if you don't hold it, you don't own it ;)

You are kidding, right?  I agree the upside potential is huge, but if the security of the system was somehow breached, it could become worthless overnight..   While I am no security/technology expert by any means, I think the system still has to prove itself for several years in order to be considered 'safe' (and even then you still have to watch developments like quantum computing).

The second biggest risk is that the government declares bitcoin illegal in some way (probably saying it supports terrorism or some other kind of nonsense). Scoff all you want, but making it illegal in some fashion will scare away all of  the people you are counting on to buy your million dollar bitcoins.

The biggest risk to bitcoin is that the government will try to regulate it. Again, it doesn't matter if it is possible, or successful, or not. The result of regulation will be that most people will avoid bitcoin because it won't be worth the hassle, and your dream of million dollar bitcoins will disappear.

Today, Argentina is back in a bind. There is a strong possibility of another crack-up within the next year. And then we'll have the same opportunity we had a decade ago. 
 
The signs are all there. The streets of Buenos Aires have recently seen the return of the backstreet currency exchange.
 
According to the official exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street, people are happy to pay up to 6.7. Inflation runs at 25%. The purchasing power of an Argentine's peso savings is going down by one-quarter each year.
 
The government claims inflation is 9.9% and has outlawed calculating or quoting any other inflation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas.
 
To take a foreign vacation, Argentines have to apply to a bureaucrat for permission and explain where they got the money for the trip. And there are rumours that it will be made illegal to talk about the existence of the shadow market exchange rate for dollars.
 
But a lot of Argentines' dollars and pesos don't reside in bank accounts. Property transactions typically take place in special rooms in lawyers' offices, and they're cash deals. There's that much distrust of banks. They are fine for day-to-day things like paying your electric bill. Not for your savings, though.
 
And these transactions more often than not take place in dollars... If you pay in dollars, you could get 25% off the price of property. The government has outlawed this, making the buying and selling of real estate in dollars illegal. Just one more rule Argentines will find their way around.
 
By some reports, if an Argentine company complied with all the taxes and tariffs it faces, they would eat up more than the company's pretax profits. So the shadow economy thrives... by necessity, it seems, rather than greed to pay less tax. Middle-class day-trippers take the ferry to Uruguay to put their savings in deposit boxes. The rich spend millions on condos in Punta del Este, Uruguay.
 
For Argentines, real estate is their bank. They understand inflation and expropriation from bank and pension accounts. If they have some spare cash, they'll buy an apartment. Or a beach home across the Río de la Plata in Uruguay. Or a condo in Miami.
 
Now, fewer Argentines are using local real estate as a hedge against inflation. New construction and permit applications have fallen off a cliff. They just want their cash out.
 
The government claims that the rate of outflow has slowed. But with every passing week, companies and individuals figure out new ways to get their cash out. For instance, companies buy financial instruments locally in pesos that they immediately resell in New York for dollars.
 
Argentines have seen it all before. When a government and a banking system take your life's work with the stroke of a pen, you don't forget. If you're lucky enough to rebuild your savings, the next time you will be ready. And the harder the Argentine president, Cristina Kirchner, tries to keep assets in the country, the more they'll be siphoned out.

I realize that there is no use in trying to get people here to come to their senses. Anyone that can afford to lose 80% of their money either has no money or is living in their parents' basement, or both. You just aren't being rational.

The second biggest risk is that the government declares bitcoin illegal in some way (probably saying it supports terrorism or some other kind of nonsense). Scoff all you want, but making it illegal in some fashion will scare away all of  the people you are counting on to buy your million dollar bitcoins.

The biggest risk to bitcoin is that the government will try to regulate it. Again, it doesn't matter if it is possible, or successful, or not. The result of regulation will be that most people will avoid bitcoin because it won't be worth the hassle, and your dream of million dollar bitcoins will disappear.

No I'm not kidding. I personally feel that if 5% of your savings go to 0, that this will have very little impact on your retirement. At worst, it delays your retirement by 1 year 3 months using a 4% withdrawl rate. In reality, you'll retire at the same age, but get a condo a few exits more north of Miami.

Oh ok, but then you are talking about the downside risk if you only invest 5%, I thought you were talking about the downside risk in bitcoin in general (so also for people who have 100% invested in it).

The second biggest risk is that the government declares bitcoin illegal in some way (probably saying it supports terrorism or some other kind of nonsense). Scoff all you want, but making it illegal in some fashion will scare away all of  the people you are counting on to buy your million dollar bitcoins.

The biggest risk to bitcoin is that the government will try to regulate it. Again, it doesn't matter if it is possible, or successful, or not. The result of regulation will be that most people will avoid bitcoin because it won't be worth the hassle, and your dream of million dollar bitcoins will disappear.

Twice you have mentioned "the government" but if THE government made it illegal, the other 27,465 governments could still easily allow it's use.

Crackdown on Bitcoin by big governments would hurt Bitcoin at least in the short term. You can not kill Bitcoin by legislation, but you can affect the exchange rate quite a bit that way!