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I think this thread has a saying "never go full fiat" .. I have taken that to heart.. Even at $1million, I'm not anywhere near full fiat. I just haven't yet put any thought into how I'll modify the formulas past that point.
Yes. I think that the expression works in both directions. Don't go full fiat and don't go full BTC. Most of the time, these days, a vast majority of people are not going to be able to go full BTC even if they wanted to, but the point remains that we are still in a fiat world, so there are many investments that are going to exist in fiat, and it remains a matter of remaining cognizant of both your investments and your allocation levels.
Some people do play around with going full fiat (or completely getting out of BTC to try to buy lower, and I personally consider that approach as an unnecessary extreme - even if the odds are decently in favor of the BTC prices going down... Hey an extreme case scenario, in my view, might be selling 80% of your BTC or something like that, but for myself, I could not imagine a feeling of necessity to sell more than 50 of my BTC in any one swoop - unless I was getting close to death or some other extreme personal scenario.
From reading all of the above, it looks like we have _scarily_ similar thought processes on this concept as a whole.
I've found the same phenomenon with the BTC to Fiat percentages, although, mine seems to stabilize around 80% BTC to 20% fiat... "Fiat" in this case is shorthand for "diverse portfolio of stocks, bonds, property, cash equivilants, etc..."
Well you are thinking about the matter a bit different from me in terms of how to incorporate your other investments into your BTC portfolio allocation determinations, so in that regard, I would be much less into BTC than you because I was talking about how to consider the fiat that I have dedicated to BTC investing, and I was not referring to other investments that I have. We are all different in that regard, and there are some younger folks who get into bitcoin and they have little to no investment in other asset classes, and then they start to erroneously believe that sufficient diversification comes from investing in other cryptos....
Anywho, I am getting a bit away from the topic, and my initial goal, when getting into BTC, was to put about 10% of my total quasi-liquid assets into Bitcoin, and I probably got into the 12% to 13% territory since BTC prices remained quite flat through 2015... and furthermore, BTC's subsequent enormous price appreciation caused my allocation towards BTC to occupy a much higher amount that I did not really diversify out of, but I conceptualize the investments somewhat differently and I consider my investment in BTC to serve as a kind of self-contained and separate play toy.. that currently does add up to more than my other investments... more than double, based on current BTC prices.
Amazingly, the stabalization point for me seems also to be around $500k. I'd honestly be rather interested in finding out if any other WO posters are seeing the same with their long term plans...
Well, it could depend upon how much equity that they have at this point and/or if they are heavily into accumulation versus a phase that has more maintenance emphasis. And the later stage would be a kind of cashing out phase (like you mentioned, even the cashing out phase might be incremental and prudent in terms of never cashing out all BTC absent extreme circumstances).
And yes, I agree with your quandry of figuring out ways to spend excess money. I call this my "hookers and blow" stage.. not to be taken literally of course.
Yep... If prices are now below $10k, there should be a decent number of us active BTC HODLers who should be able to reach a kind of hookers, blow and lambo stage, especially if prices go supra $100k (of course the exact price point is going to vary).
I figure if/when BTC ever hits about $250k, then I'll take the time to extend the planning out past a million.
Like you suggest, might be too early to get ahead of ourselves in that regard.
I just can't in good faith put serious thought to that at the moment, cuz I'm sure once the point arrives where I really don't have to worry about finances for the rest of my life, I won't be exactly the same person I am now...
Ugg. heavy thoughts..
Well, that too. Sometimes, it is better to consider such changes and adjustments once the situation changes in a way to make the planning more realistic and more in line with where you are going to be at that time, whether that time comes in 1 year, 5 years, 10 years or some other time frame (hoping that such a time frame comes).
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