Bitcoin Forum

With the dramatic rise in bitcoin price I worry about the size of my BTC holdings relative to my overall portfolio. As much as I love bitcoin, it is still a social experiment. I am trying to keep diversifying my assets as a hedge. Anyone else thinking about this? Below is the mix I'm trying to acheive.

Bitcoin..............................%30
Cash in USD and EUR.......%20
Real estate.......................%20
Investment vehicles.........%20
Precious metals...............%7
Fine art.............................%3

https://bitcointalk.org/index.php?topic=345065.0

As for non-crypto holdings...it probably depends on your life situation and what you know about.

Also take into account that Bitcoin is the only one of those you can really take with you if you're forced to leave your country, etc.

I think bitcoin is still in it's beginnig... So the percentage you give it is good enough. I believe it will rise. At least for few months. So 30% in bitcoin (I would say generally in cryptocurrencies) is pretty good. Right now I am considering about giving 30% or 35% to bitcoin.

Hehe, I'm about 70% BTC, 25% Precious Metals, and 5% USD.

I've never heard of fine art as in investment? Where do I get some arts? On a second thought, I'll probably just invest in DVDs.

I was referring to my extensive porn collection.  ;D lol, no.

Buying art is tricky. I stick to original wall paintings. I try to find artists expressing a unique vision with broad enough appeal to stand over time. For example, I own the original piece that the prints below are based on, and some other paintings by Lance Berka.

I am buying now because the economy is down. When (if) the dollar is rallying again I sell the art I have collected.

http://fineartamerica.com/featured/1-cardinal-lance-berka.html   

Don't buy art for its investment value.

Anyway, good luck keeping your Bitcoin holding at a specific percentage. I just let it float :D

I'm assuming you have a enough cash for this to matter :-) 

Bitcoin is a pure gamble.  Get your investment back and take the same percentage return out that you would take from your real estate holdings.  In my case, thats 5%.  Leave the rest accumulate.  Forget the balance of your portfolio - you have tickets to the biggest opportunity in modern history and now is not the time to sell.

Cash is a questionable decision.  Put the free money on a peer to peer lending system - I use https://www.fundingcircle.com/my-account/my-lending/ That's 5% return and the money is every bit as available as if it were in a deposit account.

Precious metals are losing money and will probably continue to lose money.  We are just coming to the close of a golden age (sorry!) of gold buggery.  Its a bad time to have money in metals.

No idea about art. 

Good luck!

Thanks Hawker, interesting stuff. I had not heard of fundingcircle.
And I'm with you on metals. I am holding, but not buying right now.

Current Asset Allocation

Bitcoin..............................%1
Cash in USD and EUR.......%9
Real estate.......................%20
Investment vehicles (US).........%35
Investment vehicles (Non US).........%35
Precious metals...............%0
Fine art.............................%0

http://www.telegraph.co.uk/finance/personalfinance/savings/10400668/Martin-Lewis-What-I-earned-from-peer-to-peer-savings.html

I just stumbled onto this article and put some money in the top payer :-)

Gold and silver; why?  Seriously, why?

Savings divided:
40% Bitcoin
35% Precious metals
25% USD

Fair enough.  You know that market and you are collecting valuable coins I assume rather than the commodity.

There is Art and there are collectables. Not the same.
If an artist doesn't show up on this database, then they are not a part of the contemporary art market, its as simple as that:
http://www.artfacts.net/
Lance Berka isn't there. You might enjoy having the artwork and you might be able to resell it and possibly even make money, but it is not the same as investing in Fine Art.

Bunch of car guys here I see. Curious what era you consider good for investment vehicles? It will be interesting how values hold up as the baby boomers age IMO.

As a general rule I'd go with investing only whatever you can afford to lose. It's so tempting to plough more and more into BTC though (as well as other cryptos).

You have to invest all your wealth in some for or another so you should be prepared to lose it all at any time.

Jeez guys, have fun rebalancing your portfolios every couple weeks.  Kinda hard to keep a prescribed % in real estate when bitcoin doubles (or halves) in a month.

My personal opinion is put whatever you can afford to lose in high risk investments such as bitcoin.  That might be 0, 2%, or 90%.
 

Certainly true. I mostly buy known artists. But I can make money even buying what I consider crap. Paintings of beautiful girls, for example, hold their value while dark subjects are hard to sell no matter how good. When buying for investment purposes I only look at the price and what I think it's worth. It's not time to be a critic.
I do like his work however. Lance Berka is a trained artist and I think his work will appreciate despite only having local shows. He mixes realistic wildlife painting with influences of graffiti, add art, and the amusement park signs he used to paint. 

I never chase my highly speculative investments (including bitcoin).  I usually re-coup some multiple of my original investment (four times with bitcoin) then let it ride.  Bitcoin is now a no lose investment for me.