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Author Topic: What percentage of your investment holdings should be in bitcoin?  (Read 5819 times)
RodeoX (OP)
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November 26, 2013, 05:11:10 PM
 #1

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

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November 26, 2013, 05:23:08 PM
 #2

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.
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November 26, 2013, 06:35:24 PM
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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.
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November 26, 2013, 06:36:47 PM
 #4

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.
RodeoX (OP)
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November 26, 2013, 07:43:43 PM
 #5

...
I've never heard of fine art as in investment? Where do I get some arts? ...
I was referring to my extensive porn collection.  Grin 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   




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November 26, 2013, 07:44:55 PM
 #6

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

Don't buy art for its investment value.

Anyway, good luck keeping your Bitcoin holding at a specific percentage. I just let it float Cheesy
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November 26, 2013, 08:20:22 PM
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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

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!
RodeoX (OP)
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November 26, 2013, 08:27:28 PM
 #8

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.

The gospel according to Satoshi - https://bitcoin.org/bitcoin.pdf
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November 26, 2013, 08:29:17 PM
 #9

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

Only when the tide goes out do you discover who's been swimming naked. -Warren Buffett
Hawker
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November 26, 2013, 08:31:44 PM
 #10

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.

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 :-)
Hawker
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November 26, 2013, 09:14:57 PM
 #11

...
I've never heard of fine art as in investment? Where do I get some arts? ...
I was referring to my extensive porn collection.  Grin 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.
Fine art is a good investment, especially because you have the originals, and based on your breakdown in the OP, don't depend too heavily on its investment value. I can't justify buying art, but it seems like every serious investor should count at least one artwork among his assets.

A simple compromise is to buy gold coins instead of bullion bars. A coin's numismatic appraisal can be similar to buying art, and it'll always be worth its weight in gold.

My ideal (not actual) investment layout is below:

Gold: 25%
Silver: 5%

Bitcoin: 20%
Litecoin: 10%
Cash: 15%
Credit union: 15%
Vehicles, goods: 10%

Gold and silver; why?  Seriously, why?
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November 26, 2013, 09:22:09 PM
 #12

Savings divided:
40% Bitcoin
35% Precious metals
25% USD
Hawker
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November 26, 2013, 09:31:36 PM
 #13

Gold and silver; why?  Seriously, why?
Gold and silver have been valuable for 3,000 years, bitcoin for three. It's not a bad idea to have some of each, especially bitcoin, and especially now! A paradigm shift to $1000 = 1 btc seems very natural to me because $100 = 1 btc came as such a shock in the past. Precious metals are an easier, less volatile investment, and as hinted in my last post, I simply enjoy owning pieces of history. It's a matter of taste, really.

Fair enough.  You know that market and you are collecting valuable coins I assume rather than the commodity.
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November 26, 2013, 09:55:09 PM
 #14

...
I've never heard of fine art as in investment? Where do I get some arts? ...

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   





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.

calian
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November 26, 2013, 10:20:40 PM
 #15

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

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


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.
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November 26, 2013, 11:04:22 PM
 #16

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).

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November 26, 2013, 11:09:32 PM
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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.
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November 27, 2013, 02:05:26 AM
 #18

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%.
 
RodeoX (OP)
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November 27, 2013, 02:37:43 PM
 #19

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.



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. 

The gospel according to Satoshi - https://bitcoin.org/bitcoin.pdf
Free bitcoin in ? - Stay tuned for this years Bitcoin hunt!
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November 27, 2013, 05:02:26 PM
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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%.
 

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.

Only when the tide goes out do you discover who's been swimming naked. -Warren Buffett
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