Bitcoin Forum

My target is to have 50% of my savings in BTC, so what do you think, is this a good strategy?

Why not put 100% in it? It all depends what you feel and think about the value and if you trust BTC in general...

probably, i have about 25% in just in case something crazy happens with bitcoin. But Im always looking to buy more. I just stiil see credible bitcoin enthusiast say it could go down to $300 or even $200 again. So Im waiting for that, if it happens. But it all depends on how much you have in savings i think. If you have 1000 in savings and you use 50%, $500 is a lot different than $1000. But if you have 100k, dropping down to 50k fluid isnt too much of a kick in the nuts. It helps not having a wife and kids. For, most bitcoin horror stories I read start off with, " Well, my wife/gf was complaining" and that usually is the beginning of their "why im still poor" bitcoin story.

How much risk are you comfortable with?

Do you need the money for any kind of payments? Emergencies?

Do you have stable income?

If tomorrow bitcoin dropped to $50, would you be ok with it, or would you panic and contemplate jumping out of your window?

If you are completely comfortable with the risk, then sure, put 50% of your savings in there, but if the thought of bitcoin dropping worries you, or if it may cause financial distress then no, it is not a good strategy!

Always diversify your portfolio! Unless you truly believe Fiat will crash (in which case you're going to have a lot more to worry about than having your money in BTC anyway), there is no reason to have an extremely large amount of your money in BTC.

Personally I keep 25-30% of my portfolio in BTC and other cryptocurrencies.

Around 1 months of casino visits, circa $1000USD

The rest of the coins were given to me on a laptop bequeathed to me unknowingly.

Discovered what a Wallet.dat was pretty quickly.

My everything is in BTC, whenever I need i use in BTC too, Just waiting Gasstation uses Bitcoin after that i am going to close fucking bank account also.

50% (but i got in early). Nice to have a stake in things, news matters to me now

Savings. What savings? All in btc now :)

I'd say about 25%. Not much but I don't want to risk it all either.

99%, but 100% came from bitcoin in the first place.

I started with about 5% in btc before it grew to about 35%. I then cashed out a bit to cover the initial investment and a little extra. Currently I run about 10-15% but it changes from day to day. I would never say to go all in unless you are only playing with small amounts of money and are willing to lose it all.

bitbrasil you got a brilliant idea of storing the saving in form bitcoins. For sure saving 50% of your saving in bitcoin is a great strategy which shall multiply your savings many time in short period of time. I shall also start saving my hard earned money in bitcoins from January. Thanks for strategy.

Approximately 95%

Originally it was much less (like 20% when I started buying bitcoins) but as the rates went up, my amount of bitcoins now represent 95% of my wealth.

Go 5-10% of the money you don't need for living (of all your investment assets). That way you won't loose too much if something happens, but if BTC goes through the roof, you still participate a lot.

Anything more than 10% is craziness in my book and much too risky. Less then 5% - well, then you won't really win that much in case it suceeds; if you believe in it that little, then better not invest at all.

Of course, when the BTC price rises, it will represent a lot more % of your net worth - it is a good decision to sell off a little bit then (again, in chunks, 5-10% of your BTCs).

Are you saying that initially you didn't had any assets to start with? That will be unbelievable, as you need at least some to purchase your initial coins.  ;D

I'd say that maybe 5% of my savings are in BTC. I'm a late adopter and that's the only amount I was comfortable investing with (i.e. if it drops to 0, though impossible, I wouldn't want to shoot myself). I basically only invested "play money" anyways.

Maybe that percentage will grow over time but it won't be because I'll be injecting a lot more funds into BTC.

110% - I opened up a LOC and bought more during this crash - yowza

80% in BTC, the rest in bank account for the "live" bills ...
when i need money, i change BTC to paypal ... and it's ok.

no need card bank (50 euros per year).

10% at the minute, but i will up that to 20% if there is another dip.

Oh, and no, 50% is definitely not a good strategy!

have a lot in bitcoin but only what i can lose !!

25% atm but gonna get more :)

I have $25 worth of Bitcoin I got this week. I don't really want to put much more than that.

The concept of spending more than you actually need is even more stupid, imho.

What would you do if you win a price or whatever, resulting in a surplus of $500,000 for example?

bitcoin is speculative right now, put whatever you can afford to lose.

but then again, the same could be said for fiat :-\

0% in BTC,
10% in USD,
50% in RUR,
40% in Yuan

20% for me and I've no real plans to increase that. I think the OP's 50% is too high. Its just too volatile and insecure.

What was 10% of my savings is now 32% of my savings  ??? but I see no reason for concern about *this trend for a couple of years ;)

* https://bitcointalk.org/index.php?topic=366214.0

Well, since our savings were put into bitcoin 10 months ago, our savings have grown greatly. Now we keep all but 3 months of libabilities in BTC, so about %90 of our savings with bitcoin investment from 9 months now being something like %70! oh ya.
If there is any delay in getting new fiat savings into BTC it's an emergency in our family.

Only put the amount you are able to lose. If you will be out on the street if all your savings disappear then dont bother putting a large percentage into BTC - its far too risky!

OK, reading this more carefully, I gotta say... What are you people nuts? Less than %50?! This is year 5 of the future of financial services, BTC represents light years jump forward. It's as if you can buy a share of all future productivity of the internets back in 1994-95.

Having been in for 9-10 months now, and having seen it up over %8000 percent this year, (like all time historical best investment zone) how can you expect it to do less than %700 next year? Where else are you going to make that? bitcoin has been rocked by most everything and shrugged it off. The Indians are arresting exchange operators, meh says the market. The fork at the beginning of the 2013, the market corrected less than %24 for a week, and the worst possible technical threat was fixed in under a day!

I feel like we are conservative having 3 months of liabilities in fiat. Even if bitcoin drops again to $300 like it did two weeks ago (on two exchanges and then recovered to over $700 immediately despite the Chinese gov, which executes ppl for financial crimes, coming out 'against it' really just recognizing it and preventing banks from using it (halelujah!)). Then you still have liquidity presuming you didn't bet everything in at the very top of $1200. You can sell a few if you really need the fiat, and sit on the rest until it's back over $1250 in 3 months!

I mean come on! Most people I know just worked harder so they wouldn't have to touch their BTC savings because it was going up like 4 times a month. That's the way to go.

I'm glad to see there are soo many bears left, because we have another $10,000 to deploy in the next 2.5 months and have learned our lesson to not touch or trade our BTC. We are almost guaranteed to go north of $5,000 in 2014 (and only that little because India actually is arresting bitcoin traders) and y'all are dithering about picking up slightly cheaper coin? Bitcoin needs to coin the opposite phrase to "picking up nickels in front of a steam roller." You get fiat, you convert it to BTC as fast as possible. If that rule isn't clear to y'all yet, then well good for the rest of us for whom it is.

I can't tell if you are serious nodroids. All I will say is how would you feel if someone read your post, put more than 50% of savings in Bitcoins because of it, then lost almost all of it. Bitcoin is young so growth is easy, we cant really say that the farther we get into it.

Well, it used to be like <1%...but now it's like 80%

for the first time I got more money than I need day to day, I put it all on btc. Still small money, but when I get more I'll put about 20% in btc, 5% in other cryptos, 60% in silver and the rest in stock market. Think 50% is a lot right now before the important governments have made up their minds. Most people are pussies, so if they ban it completly price will go down as most businesses stop accepting bitcoin as payments (although I will not)

Wow, some people are really banking on BTC!  I think 10% - 20% is reasonable.  Anymore than that and I'd be too nervous.  Different strokes, I suppose.  50% seems way too risky, IMO. 

A % figure can be fairly meaningless, absolute values are relevant also.

Someone with a few $1000 of savings can risk a large percentage, as they could earn the money back in a few months. $100,000 is a different matter for most people, even if it is only 10% of their savings, it would take many months/years to recover that amount.

Of course few here are going to divulge absolute values so we are stuck with it.

Another factor is the increase in value, I started with 2% which has increased to 70%. I think it would be crazy for me to invest 70% of my savings now, but i'm happy to let it play out and see what happens.

I think sometimes you need some balls.

This is true.  The % is subjective, without knowing the values.  We could be talking about the same dollar figure at 70% of my savings, and 2% of yours. 

Definitely takes some balls to throw large sums into investments.  I just don't want to lose my balls either!   

If you have almost no money, then sure, gamble a large percentage of what you can save on BTC (or other alt-coins).  But anybody who has enough money to distribute savings around should only be investing a percentage of their savings in BTC (or other alt-coins).  I'd say no more than 20% in BTC (or other alt-coins) and you're still being somewhat reasonable.

Close too 80%  ;)

Got a alt question to this topic but nearly the same, what about MINED btc, save all or spend 1/2? Ideas?

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What's a "LOC"?

I've invested all of my liquid savings into BTC, and I buy more with each pay check to accumulate as much as I can, because my man fiddy cent once said - "get rich or die tryin" ....and this quote applies perfectly with BTC. If you invest enough and if bitcoin follows the same trend you can get rich, or you can lose everything. But the latter is less likely. Bitcoin has had attacks, blockades and problems with its protocol... but it has upgraded, adapted and survived so far. With the increase of awareness, number of users, adoption rate and expanding network it is becoming more and more unstoppable.

Like the other dude said though, % of investment can be relative. I'm 25, single and don't have any significant debts so if i lose all my savings I'm not going to die. But the fact that bitcoin is deflationary in nature and is supposed to increase in value it makes it an attractive investment or a store of my savings.

I refuse to invest in the stock market and won't even bother "diversifying" into something where a 10% return would be considered lucky... would rather take a risk at something with the potential of 1000%+ returns.

Maybe someone more sane than me can tell me I'm making a huge mistake?

OK. I Was reading all kinds of %10 and %25 too. So I got a little over board. %50 would be a lot for some people. Also if you're mostly all in I'd agree that hedging with a little liecoin makes sense ;P

Considering you are young and single and the potential upside is clear, I think you are sane.

Doesn't sound like a mistake at all!  Run with it.  As long as you're prepared for rock bottom, then you can chalk it up to a healthy risk with huge potential! 

Add a poll for this !

Increments of perhaps 5> 10%, 25% and over 50%

i will saving 45% into BTC

Currently about 10%, but considering to rise it to 25%. Watching my money on a bank account and knowing it is used by some other guys to earn sweet money is just disturbing  ;)

No, it is a terrible strategy.

If you are able to save money and want to receive interest over the amount for a certain period of time, you should use a saving account at your local bank. It is the most safe and better way to secure your savings for the unforeseen future.

The best strategy to secure your savings against inflation is invest 0% in BTC.

Do not fall for the trick that speculators want you to believe. Everyone which suggests you should buy any quantity of BTC to hold as investment is only doing a favour for the speculators, whose are ready to sell for the next fool the idea the world have an infinite supply of people willing to pay more and more for BTC.

My btc holdings, at the current price, exceed by a substantial multiple the rest of my assets including fiat.  That pretty much answers the question in the title of this thread, but it doesn't go very far in helping a reader make a decision on his own.  Everybody's financial and life situation is different.
I will tell you why it made sense for me to go all in.  I am approaching retirement age.  Before I started buying btc, I had only about thirty thousand in liquid assets, and twenty thousand of debt.  So my net assets, in terms of what's necessary for retirement, were negligible.  I would use up ten thousand (net) savings pretty quick, and I would have to live the rest on my life on social security.
It made sense to me to go all in.  This is based on my sense that bitcoin will not fail... you may have a different opinion.  But bitcoin has gained by an order of magnitude every year.  If I am right:  if bitcoin does not fail, and if its growth continues at anything like what it has historically, then I will be able to retire comfortably.  If I am wrong, I lose my savings, but they were totally inadequate in the first place.  In that case I will simply have to live on social security, which is no different from what would happen if I stayed out of btc.

60% BTC, 5% LTC, 5% DOGE, 30% fiat. But I don't have that much savings, anyway.

Bitcoin is a fog, you give real money for fog, I can not believe LOL.

In the existential sense - "real money" is also a fog.  We don't take any of this with us when we go.   :P

check this, why LTC not have the price 820 usd? why DGC not have the price 1 milon USD, why BTC not have the price 1 usd.
The answer is simple,
Mining company need a lot money, mining SHA-256 is so easy, and after mart 2014 game is over,
mining will not be cost-effective
each company will leave mining and BTC and all other crypto coin go to zero.


http://www.businessinsider.com/why-bitcoin-has-value-2013-12

Wat is real money? You are fog, LOL.



I hate reading articles from Business Insider, Forbes, etc about bitcoins. They are always bipolar and show they have little understanding of it. They started off being negative towards bitcoin and now that it's gaining popularity they are switching sides. I like how they picked Dogecoin as a serious example for discussing alt coins. And this quote:

"The question then becomes: Can the social network last? If it can, then the value can be maintained, or might grow by even a lot. But history is not on Bitcoin's side on this question. For one thing, no social network seems to have much lasting power... especially not the first in a given category (Napster, MySpace, ICQ, etc)."

1. I don't think there's a middle ground where the "value can be maintained"... it will either be worth nothing or it'll become huge (5-6 figures)
2. Bitcoin coming in ahead and having the largest network, infrastructure and support is a good thing for bitcoin. I don't think the Napster analogy applies to everything. People barely know about bitcoin as it is... alt coins are another level of confusion. There will probably be several big alt coins along with bitcoin but at this stage all cryptos need bitcoin to succeed and have mass adoption


edit-- i didn't realize the link was form the same user as above, what a waste of my time

igorr, that can't happen, because if certain percentage of companies will leave mining, it will again become profitable for the rest of them who stayed in the game. Over time, those companies with lowest operational costs will stay, and also those people who doesn't mine for profit (you would be surprised, but there are really people who mine just to support the network and doesn't care about profit).

This is the best strategy if you absolutely don't want to take a slightest risk, and do not care that you can have much more when the price of bitcoin will rise in 2014.

Rule number 1. NEVER put all your eggs in one basket. That's a really bad idea no matter how bullish you are on btc

I mined most of them with a laptop CPU. Actually completely forgot about bitcoin and came back about a year later and found them about another year later.

It's trickier than that because most savings accounts offer real negative returns (ie. less purchasing power after inflation is taken into account). In this day and age you cannot simply stash money in a savings account and hope it will one day buy you the house you wanted or the pension you dreamed of. You have to consider all kinds of things like how long you have until you need it, what you intend to use it for, economic conditions, risk of other investments etc to make an informed decision.

Invest in things you understand and believe in for the future and always keep some reserves liquid for opportunities that arise.

I have 100% saving in Bitcoin only.  8)

Because fiat currency saving accounts in the UK charge too much tax. Whereas Bitcoin doesn't have any tax currently.

95%

I put 100%+ into BTC. Every penny I have left over from paycheck goes into BTC and GROWWWS :)

Approximately 50%.
Enough to make me worried.

Started at 1%, is at 6% now. Think that's a comfortable spot for me. At 10% I'll start selling.

I will start selling only if I'm out of USD income source and when BTC costs at least $20,000 :)

Bitcoin doesn't have interest... so there is no need for any income tax like savings.
But Bitcoin does attract CGT.

It's not interest that will be taxes (if it will be), but rather a capital gain (like stocks). Though if such law passes in the US, I don't know how it's going to be executed cause BTC is almost untraceable. I guess those BTC holders who want to tell IRS how much they have will be taxes and those who don't want, will not.

I'm at 102% if you factor in debt. I know that's ridiculously high, but I just can't sell in a down market. I rode out two crashes, one more rally and I'll sell enough to drop below 90%. I can wait three months before needing to get a second job and I'll wait two years before capitulating and cutting my losses. Hey, the profit is secondary. I wanna see this thing succeed.

Profit might indeed be secondary. But a big loss certainly wouldn't be .... hope none of us face that situation !!

Your 1% is likely many others 99% - congrats ;->

...but I had to wait a few years.

I'm gladly using debt in USD because dollar inflates and bitcoin deflates :)

I'd say about 15% - if I loose it never mind, I would be more upset if I could have had BTC and have none available when the price skyrockets  :)

I don't see a way to loose it really. Just look at million dollar investors. If they invest, I'm sure they have more to loose than any of us here.

Whatever spare cash I have I buy tinned bins and blankets just in case bitcoin crashes to zero overnight ;)

depends on what you call a loss. I had no savings before I bought BTC at around $10 so it would have to fall back into that range before I'd call bitcoin a poor savings vehicle.

40% Bitcoin 60% fiat atm feeling comfort with that however, i will buy more to 60% Bitcoin ore when its passes 1k then i dont buy anymore. Bitcoin is still fresh and there is much growth to come with all those good news. The odds are really high to make a nice profit over 3-5 years hodling.

I got no wife/kids who spend my money so over some years i hope i can atleast pay a huge chunk of a new mortgage.

Also i got 1 Bitcoin to spend on pizza ore whatever over time, the rest i keep them longterm.

I have 80% of my Grandma's savings in Bitcoin, we're doing good so far  ;)

Wait, savings (of yours) from your grandma, or your grandma's savings?

I love Bitcoin, but I'm not sure if I was in the grandma stage of my life I'd want that much of my savings in such a high-risk investment.

0% BTC
100% cash

Every last penny, if BTC drops to 1, I will still be in profit.  ;D

Have you seen the prices of stuff in the stores? Its way higher than 2%.

lol. excellent strategy. Obviously an inflation lover :)

You can combat bitcoin inflation by getting interest payouts on Vircurex (https://vircurex.com/register?referral_id=801-154) deposits now!

Also, LTC & PPC deposits, too.

I imagine more banks will emerge in 2014.

I see,  :D

Save? I don't save. I invest!

Okay, now that silliness is out of the way, I will say that any amount over 33% is just way too high for my liking. The caveat is that I live in the US. So there is definitely trickiness when it comes to regulation. I feel that 15-20% in BTC/Alts is a reasonable mix to me.

Then again, that doesn't reflect my "portfolio" at all. I'm relatively young so I don't have all too much in non-realty assets. I'd say I have around 25-30% in BTC/Alts. But a lot of this money tends to move around a lot.