Is it crazy to invest your retirement funds in Bitcoin?

Today’s topic is 3 things I believe about Bitcoin others think are crazy

Why do we care... because they make me and my students money and cost people money who don’t understand them ...

Bubbles are good

  • “Only a fool would invest in this stuff!"
  • Bring capital in to fuel new technology and innovation
  • Chance to throw a lot of ideas against the wall and let free markets decide which stick
  • Opportunity for outsized returns, while they last
  • Not a reason to avoid, assuming you have risk capital to invest

Bitcoin has a place in a retirement portfolio

  • Risk capital only 
  • uncorrelated asset class 
    • outsized returns, for now
      • If I invest $50K …  upside downside skew is compelling
      • Can’t fall in love with the merchandise … it’s like having a lion for a pet. Any moment, it could turn on you ...

No research, no news, no peeking - not only unnecessary, unhelpful …

  • The market is like a voting machine--tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine--assessing the substance of a company. - Benjamin Graham
  • Driven completely by sentiment - no connection to fundamentals in the short run
  • Over the long run, this is why bubble will pop
  • 5 questions - what to invest in? And how much of the portfolio in each? Go to system page
    • Clearest use case
    • Deepest liquidity
    • Smart money
    • Potential for hedges and alternative investments
    • Nothing to do with white papers and underlying technology
    • Totally based on Sane Crypto philosophy of hope for the best but plan for the worst
  • Works view and first priceless inform answer to five questions

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Kim Snider