diversity is near impossible for BTC bulls

[billyjoeallen]

I think it's prudent to have no more than 90% of my assets in bitcoin, but the problem is that BTC appreciates so much faster than everything else I own, that I have to continuously sell BTC in order to stay below 90%!  Anyone else have this problem?

[Bono]

http://www.illuminatiagenda.com/wp-content/uploads/2013/01/jackie-chan-illuminati.jpg

What? I don't... even...

Following your own 90% rule is just forcing you to lose money in the long run. As long as the initial investment was 90% or less of what you had, why would you draw from it constantly?

Seriously... I can't even fathom...

Are you just pulling our legs to see how many replies this gets?

[calian]

If you're just putting the cash in the bank take care about exceeding the deposit insurance limits for your country. Bitcoin is a natural for holding savings. Obviously if you need a certain dollar value on a certain date then sell coins and hold cash. However if you're saving for the long term I don't see the need to keep BTC below a specific level.

[billyjoeallen]

If you're just putting the cash in the bank take care about exceeding the deposit insurance limits for your country. Bitcoin is a natural for holding savings. Obviously if you need a certain dollar value on a certain date then sell coins and hold cash. However if you're saving for the long term I don't see the need to keep BTC below a specific level.

If you don't see the need to keep a diversified portfolio, then that's a different issue. If you DO see the need, you'd know why have to sell about 4% every time BTC goes up 5%.  if BTC dips, I buy back in, but always with less dollars than I took out. It's actually starting to generate a pretty nice positive cash flow. More than my paycheck some months. I think this is a good strategy after a couple years of hodling. Yes, I will always underperform the BTC market, but I've already pulled out more than my original investment so It's all gambling with house money now and I can't lose.

I spent two years without selling a single BTC. My time to start taking profits.

[empoweoqwj]

I think it's prudent to have no more than 90% of my assets in bitcoin, but the problem is that BTC appreciates so much faster than everything else I own, that I have to continuously sell BTC in order to stay below 90%!  Anyone else have this problem?

That's fine. Its not a problem, just asset allocation. If bitcoin collapsed tomorrow, you will be very happy you aren't 100% into bitcoin

[jonanon]

I think what you're doing is definitely the right thing and if your turning a profit by selling high and buying back in lower then I would continue this path 

[billyjoeallen]

I think what you're doing is definitely the right thing and if your turning a profit by selling high and buying back in lower then I would continue this path 

The key is to always sell more than you buy in dollar terms. I actually made over $ 300 in December without reducing my BTC stack at all! not bad considering the market dropped over 20%. of course November was much, much, much better.  BTW, I'm using less than 1% of my holdings to day trade. Still haven't got it worked out yet. I've gotten a little risk-averse in my old age :-P

[billyjoeallen]

OK, I think it is a good strategy.
But 90% seems to me too much.
We don't know the future and bitcoin has a lot of mighty ennemies (states, central banks, politicians, etc...).
Imagine what you will do if all of a sudden 1BTC= 0$
I view 75% as a maximum.
Personnality I am more carefull and stay around 50%, with gold, real estate and cash for other 50%.

well, yeah. that would be even better, but unless there's a legal way to roll my capital gains into another asset, I'd have to pay a huge tax penalty. and it's hard to imagine a scenario that would cause a crash to zero barring a new tech that cracks the encryption. the closer BTC comes to zero, the more attractive it is to guys like me who want to buy low.

[empoweoqwj]

OK, I think it is a good strategy.
But 90% seems to me too much.
We don't know the future and bitcoin has a lot of mighty ennemies (states, central banks, politicians, etc...).
Imagine what you will do if all of a sudden 1BTC= 0$
I view 75% as a maximum.
Personnality I am more carefull and stay around 50%, with gold, real estate and cash for other 50%.

well, yeah. that would be even better, but unless there's a legal way to roll my capital gains into another asset, I'd have to pay a huge tax penalty. and it's hard to imagine a scenario that would cause a crash to zero barring a new tech that cracks the encryption. the closer BTC comes to zero, the more attractive it is to guys like me who want to buy low.

If you think there is a tech coming that will break the encryption then I've no idea what you are investing in bitcoins for ....