What Holds You Back From Going 100% into Bitcoin? How about 120%? \ stacker news ~bitcoin

What Holds You Back From Going 100% into Bitcoin? How about 120%?

1574 sats \ 30 comments \ @SatsMate 3 Jun bitcoin

Hey All - I know many of us are pretty deep into Bitcoin, but I would love to hear hesitations on why others may decide not to go all in on Bitcoin.

I know some reasons are the volatility, and also the common investing adage "don't put all your eggs in one basket" - but I'd be curious to hear some lines of thought surrounding this.

For me, I have day to day operational expenses I still need to make in dollars as I have a side business I need to run.

If you aren't 100% or 120%, what would you need to see happen to go this far in?

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382 sats \ 0 replies \ @supertestnet 3 Jun

I am 100% in bitcoin because, in the whole world of finance, bitcoin is my second favorite thing

I will not put 120% in bitcoin because my favorite thing in finance is freedom from debt

365 sats \ 2 replies \ @nullcount 3 Jun

There is a non-zero chance that BTC fails in some known or unknown way.

I want to be comfortable no matter what happens to BTC.

I cannot live inside my sats. Therefore it makes some sense to "invest" improving my environment (real estate for primary residence) [non-liquid asset]

I cannot use BTC as a precursor to some physical tool or product. BTC is not consumable. Therefore it may make sense to invest somewhat in commodities (metals, oil, nonperishables, etc.) [arguable liquid]

My suppliers do not accept BTC. And I do not earn in BTC. So its expensive to translate fiat income to BTC only to translate it back to fiat when I need to spend. Therefore I keep some cash and only buy sats if I think I can hodl them for 5+ years [liquid cash]

There are assets which outperform BTC and aren't ponzi schemes. Collectables, luxury products, equity in a new business that is growing rapidly (especially if the business is using BTC as its unit of account) [arguable non-liquid assets]

It would trigger taxable events if I traded assets for BTC, I'd rather borrow against those assets tax-free with low interest [liquid assets]

If I were 100% BTC, there would be some days when I would wake up and have less sats than yesterday. Its purely psychological, but I would rather wake up with more sats everyday, even if my theoretical maximum of sat stacking is less compared to living 100% in BTC.

0 sats \ 1 reply \ @joda 4 Jun

Which businesses use Bitcoin as a unit of account?

0 sats \ 0 replies \ @nullcount 4 Jun

Microstrategy, some BTC miners, a business you start yourself :)

121 sats \ 0 replies \ @grayruby 3 Jun

I have gone 100% bitcoin in my liquid portfolio. I still have a retirement account that has stocks in it, a small equity piece of a private business and my home but otherwise everything is in Bitcoin.

108 sats \ 4 replies \ @HardRich 3 Jun

I eventually plan to be FIRE and if I live off of bitcoin I'd worry about bear markets. My current thought is to have a year or two worth of income in fiat so I can tap into that without touching my bitcoin.

If/when my stack ends up being large enough such that a 80% correction wouldn't hurt then I'd go all in.

13 sats \ 2 replies \ @freetx 3 Jun

I've run spreadsheets (using historical numbers) comparing 100% BTC allocations vs 90/10 BTC/Cash allocations.

Using historical numbers, the 90/10 balanced portfolio seems to win (using monthly re-balancing).

The magic of re-balancing is that you buy dips and thus wind up stacking more sats in the long-haul. This is very dependent on the typical 4-year cycle though....and depends on a 60-80% drawdown to happen occasionally after huge post-halving peaks. If that feature keeps happening it leads to bigger sat stacks over the decades.

So, in theory it should be possible to run a 90/10 portfolio and combine that with living off the fiat portion. Constantly drawing down the fiat portion will lead to bigger monthly sales than you would normally need, but if your needs are modest + high BTC prices, it might not be a huge negative effect.

0 sats \ 1 reply \ @joda 4 Jun

Using historical data, how did you know when to "buy the dip" with your cash reserve?

13 sats \ 0 replies \ @freetx 4 Jun

Its just a monthly rebalance....so pick a day of the month (say the 15th)....then rebalance your portfolio every day on that day. On average you will catch enough of the dips and runs to even out in the long-term.

You could do weekly rebalancing of course...

0 sats \ 0 replies \ @elvismercury 3 Jun

80% of correction will always hurt, as it will be agaonizing to spend btc for life needs when it's down 80%. Or at least, that's how I'd feel.

30 sats \ 0 replies \ @Undisciplined 3 Jun

Low time-preference

I'm focusing on transitioning more and more of my activity into bitcoin, but it's a gradual approach.

Slow is smooth and smooth is fast.

54 sats \ 0 replies \ @windward 3 Jun

If you aren't 100% or 120%, what would you need to see happen to go this far in?

I'd like to go further, actually, but I'm looking for advice on how to do so.

currently:

i rent an apartment. my landlord does not accept BTC as payment for rent, or my other direct bills. I use Fold for that.
Any leftover gets paid via payroll in BTC & sent directly to my own node.
My home is heated with an S9. I would like to look at other ideas with more hashrate if possible.

what should I do to go further?

5 sats \ 1 reply \ @cristaiji 3 Jun

I still hold GBP and pay in cash and visa in my local town. I use bitcoin to pay online sometimes and have started buying gift cards - Bitrefill etc.

For that to change I’d need local businesses accepting bitcoin which I would love to see.

0 sats \ 0 replies \ @idsera 4 Jun

Why not use a pro bitcoin bank like https://www.xapobank.com/?

21 sats \ 0 replies \ @nullama 4 Jun

Well, there are bills to pay, and opportunities to seize.

If Bitcoin is trading low at some point in time, I don't want to have to sell it for those.

That's why it's reasonable to have money in other forms.

0 sats \ 0 replies \ @PRA3S3NT1A 4 Jun

I would love to go 100% into Bitcoin mining. But I don't know which hosting service provider to choose. Moreover, make sense to finance the electricity from a fiat income.

0 sats \ 0 replies \ @Coinsreporter 4 Jun

I'm slowly making it more than 100%. I would say it's the mindset that needs to be upgraded while you go for 100% to 1000%<<<

0 sats \ 0 replies \ @BitcoinAbhi 4 Jun

I'm trying to increase my percentage, I'm not 100% to be honest but these are the problems everyone may face in india...

0 sats \ 0 replies \ @john_doe 4 Jun

I am more than 95% invested in Bitcoin. I still prefer gold or cash in some ways for the privacy features it has. So for me privacy and offline features are kind of a deal breaker. However it is on its way as I have seen wallets which have offline features and wallets like silentium with private addresses, or bolt cards for non-smartphone based "wallets". So it is just a matter of time.

0 sats \ 0 replies \ @OT 3 Jun

I’d like to be around the 90-100% all in but the family has to know and understand bitcoin before that can happen.

0 sats \ 0 replies \ @kingzing131 3 Jun

personally I think I got enough for a stack, it's decently sized that I feel comfortable with.

And the risk to me is, mining pool concentration is not getting enough pushback. If Bitcoin was already the national reserve for more countries, then I would understand the pressure to not say anything.

Imo the issue is just as big, if not bigger than block size war

0 sats \ 0 replies \ @TwoLargePizzas 3 Jun

My wife.

0 sats \ 0 replies \ @MANI 3 Jun

The fear of losing everything is probably keeping most of us to not go all in. We Have all seen the FTX saga, Justin Sun, Luna MTGox and many many more...

0 sats \ 0 replies \ @MarsIronPI 3 Jun

I’m still not sold that going all-in on Bitcoin is smart, because exchanging Bitcoin requires power and network. If we ever lose those, no more Bitcoin. In a sense, this is the “eggs in multiple baskets” reasoning, but it’s not about investment in the usual sense.

0 sats \ 0 replies \ @oliverweiss 3 Jun

Was not sure what you meant from the title. Going 100% into Bitcoin could also mean to live Bitcoin and avoiding the fiat in a daily life.

0 sats \ 0 replies \ @030a29f333 3 Jun

https://www.tftc.io/get-on-zero-part-one/

https://www.tftc.io/how-to-live-on-bitcoin/

https://www.tftc.io/the-zero-dollar-manifesto-part-three/

0 sats \ 0 replies \ @Fabs 3 Jun

Nobody wants to lend me their money. 😠.

0 sats \ 0 replies \ @rockinhawke 4 Jun freebie

The biggest drawback is not being able to spend bitcoin. There are a few shops here or there but most businesses still operate in fiat. If it came to a point where I had the opportunity to spend more bitcoin than fiat, I would move closer in the direction of 100%. I think this is the biggest hindrance for most people.

0 sats \ 1 reply \ @ihsotasn 3 Jun freebie

Bitcoin presents an exciting investment opportunity, it's essential to approach it with a well thought out strategy that aligns with your financial goals and risk tolerance. The "don't put all your eggs in one basket" principle is a timeless piece of investment wisdom. Diversification across different asset classes can help mitigate risk and protect against catastrophic losses. While Bitcoin may be an enticing investment opportunity, going all-in could expose one to undue risk if the market takes a turn for the worse.