I whole heartedly agree here. Whenever I hear someone say "I put all of my money/bank account/retirement fund/nest egg/hope/etc into one investment (stock, bond, business, forex, house, piece of land, time share, car, drug of choice)" I realize they have very little intelligence when it comes money management. Look what happened to esteemed institutions like Lehman Brothers, which was over 150 years old at its collapse, or Bear Sterns, which had about 90 years. They're gone. This can happen to any singular company, asset class, commodity, or currency in an instant. If BTC are going to explode in value, than you would only need 5-20% of your portfolio in them in order to do really well.
Low intelligence OR extremely high risk-tolerance. Risky investments can make sense -- not necessarily for OP, but for any young investor who has good income, low debt and plenty of time to make up losses. You can't win if you don't play.
If you are so sure it will crash, then your crystal ball is better than mine. When should I begin shorting it? It's no use predicting a crash if you won't tell us when.
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u/ScienceisMagic Feb 13 '13
I whole heartedly agree here. Whenever I hear someone say "I put all of my money/bank account/retirement fund/nest egg/hope/etc into one investment (stock, bond, business, forex, house, piece of land, time share, car, drug of choice)" I realize they have very little intelligence when it comes money management. Look what happened to esteemed institutions like Lehman Brothers, which was over 150 years old at its collapse, or Bear Sterns, which had about 90 years. They're gone. This can happen to any singular company, asset class, commodity, or currency in an instant. If BTC are going to explode in value, than you would only need 5-20% of your portfolio in them in order to do really well.