How Much Bitcoin Should I Own?
Anthony Pompliano is a well-known Bitcoin investor. He invests in Bitcoin but he also invests in crypto-related startups through his firm Morgan Creek Digital (an example of a company he has invested in is BlockFi — a crypto financial services provider).
He was recently on the Bill Bert podcast with Bill Burr and Bert Kreischer and was educating them on the nuances and values of the Bitcoin world. Bill and Bert are comedians and are far from “financial regulars”. Clearly, they have a solid foundation of finances and money, but they aren’t your typical finance types.
This is what made their conversation so fascinating and important. Pomp went through the fundamentals of what Bitcoin is and the questions that Bill and Bert had were the most foundational questions that you would expect from any average person on the street who has no exposure to cryptocurrencies.
Bill Burr: “How do I go from the current system to the new system without going from the frying pan into the fray?”
I thought this question was particularly great. One of the most common arguments to buying Bitcoin/opting-in to crypto is this idea that you’re just going from one monetary system to another. Why would we jump ship from something that everyone else is using (and has been using for hundreds of years) and opt for this new digital currency that is complex and berated in the media?
Pomp’s answer prompted the topic of this LeoPedia article and answers a core question to any Bitcoin newcomer:
How Much Bitcoin Should I Own?
Pomp: “The way I think about a portfolio is what percent confidence do you have in the new one [Bitcoin] versus the old one [legacy financial system]?”
“Most people are 99% old one. 1% in Bitcoin or 2%. Me, I’m younger and I’ve got a higher risk tolerance. I understand this stuff in a nuanced way, so I’m 50/50. I took 50% of my net worth and put it in the new system and bought Bitcoin.”
This answer is one of the best that I’ve heard when it comes to framing the idea of opting-in to Bitcoin. Whether you’re someone who already owns some crypto and has dabbled in the space or someone who has never even setup a wallet and tried to purchase Bitcoin, this is one of the best questions you could ask yourself:
What is your confidence level in the old system vs. the new system?
…Read the Full Post on LeoPedia: https://leopedia.io/how-much-bitcoin-should-i-own/
