13 sats \ 2 replies \ @freetx 3 Jun \ parent \ on: What Holds You Back From Going 100% into Bitcoin? How about 120%? bitcoin
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.
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0 sats \ 1 reply \ @joda 4 Jun
Using historical data, how did you know when to "buy the dip" with your cash reserve?
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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...
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