Hold most of your savings in BTC?

[Ed48]

Arguments for putting your savings in BTC:

• BTC has the potential to go up 10 or 20-fold over the next few years.
• With inflation much higher than interest rates, money in a bank savings account will just continue to get eaten away.
• With all the money printing, the days of FIAT currencies like USD may be numbered.

Arguments against:

• So long as everything you consume is priced in FIAT, it wouldn't be wise to have too much of your money in a volatile asset like BTC.
• There is a risk (maybe only very small) that BTC could collapse and never recover, and you could lose most of your money.

 

[maxinger]

Right.
BTC can go up from 5 to 6 to 7 to 8 ... digits.
It can also go down from 5 to 4 to 3 to 2 .... digits.


It can make a trader / investor very rich, or very poor.

 

[Nobert]

https://www.investopedia.com/terms/f/financial-exposure.asp

https://www.investopedia.com/terms/a/assetallocation.asp

• BTC has the potential to go up 10 or 20-fold over the next few years.

So can BABA & hundrerds of other equities.

,,Few years" can be three or seven.

It can go down as well. Against our expert predictions.

 

[Ed48]

https://www.investopedia.com/terms/f/financial-exposure.asp

https://www.investopedia.com/terms/a/assetallocation.asp

I doubt many tech/meme/crypto investors bother with boring stuff like that.

Although one day they may wish they had...

 

[mikeriley]

A savings account should never be used for speculation.
A better option is trade it or hodl in investment account.

 

[The Obvious]

Imagine you've just sold your house and you're renting for a year or so before buying a new property.

So, you decide to put all the proceeds from the sale in BTC.

If you're lucky and BTC goes up then it's all good. But if it drops 50%, you can kiss goodbye to the new house.

---------

So, no, it's not a good idea to put all your life savings in BTC.

 

[johnarb]

Savings account = long term hold, over 3 years
Checking account = short term hold, constantly spending on expenses

• We have a significant portion of our life savings invested in Bitcoin

Savings means we do not need to touch it for at least 3 years and if you look at Bitcoin's history, Bitcoin has always been higher in price over a 3--year period

 

[wiesman02]

if you look at Bitcoin's history, Bitcoin has always been higher in price over a 3--year period

if past performance of any investment vehicle guaranteed future results, we'd all be rich. My guess is you're going to lose everything b/c you've drank this bitcoin coolaid a bit too much.

 

[johnarb]

if past performance of any investment vehicle guaranteed future results, we'd all be rich. My guess is you're going to lose everything b/c you've drank this bitcoin coolaid a bit too much.

Ok, but for me to lose everything, or close to everything, you're predicting for BTC to go to 3 digit or low 4 digit and even if it does go there, all I gotta do is hodl and it will be back up to all time high in a few short years

Noticed I said significant portion of our life savings, I diversified $400K and invested on the Bored Ape Yacht Club NFT

Next thing you're gonna say is that the Bored Ape will go to $0 too, gtfo

https://elitetrader.com/et/threads/crypto-expert-justin-bieber-buys-nft-for-1-3-mm.366279/page-4

 

[Ed48]

if past performance of any investment vehicle guaranteed future results, we'd all be rich. My guess is you're going to lose everything b/c you've drank this bitcoin coolaid a bit too much.

I know a guy who invested heavily in BTC in 2015. By the end of 2017 he was rich beyond his wildest dreams, and then came the crash. After a few months, when it became clear that the bull market wasn't about to resume, he started cashing out. As his fortune dwindled over the next 12 months, so did his mental health.

Some may say, the moral of the story is to HODL for ever. But what if one day HODLing doesn't work?