Damn… the only issue I have now with the crypto is: I have to adapt my strategy every few hours. Yesterday morning: max. 20% crypto. One day later is already max. 30%. 
But I really like such challenges. 
2 Likes
I know that you are probably joking but let me remind everyone that a strategy must not be adapted without good reasons. In particular, volatile times are not times to adapt a strategy.
Stay the course.
3 Likes
Well, the share of crypto in his portfolio might have surpassed 20% and 30% without him doing anything - merely by an increase in value.
Should you sell a part - or just passively keep these gains?
If your plan is to have a stable asset allocation, then it is only logical that you should rebalance. On the other hand, if your plan was to invest a lump sum into crypto and just let it ride, then I would not rebalance, unless you’ve decided that you want to realize your capital gains. I think there is no right answer.
4 Likes
I’m hodling. Will let it grow. Don’t want to sell. (I did that stupid thing back in 2013, sold several btc for 300$ each, which I bought for 10 USD or even mined in the early days. Yes it was a gain, but I missed a lot).
I will still dedicate 20% of the monthly investments in crypto, so no change for me. It’s just crazy how quickly the portfolio shifts to such high percentages (and back down).
1 Like
I feel you, I sold 10 BTC for a total of 10k CHF in 2016… I bought them at 50 USD each but still would be a lot of money today.
2 Likes
To the crypto-experts, here is a very interesting article about the recent BTC run (in addition it is full of Sankey diagrams, so @MrCheese will love it!).
The thesis of the article is that the majority of bull run has been fueled by the issuance of Tethers, which might be a fraudulent currency scheme.
I am no expert at all in crypto, so I’d be interested to have your opinion: is Tether really a scam? or is the article a scam? Or the truth is somewhere in between?
6 Likes
Why wouldn’t USDT publish an audit of their USD reserves? (what’s the point of a stablecoin if you don’t and why would you trust the coin?)
- because the reserves are not complete
- because they’d lose even more access to the banking system as banks drop them as a result if they had been misleading the banks (I’m supposing USDT isn’t making much effort to be compliant with the US financial regulation, so banks won’t be happy to have them as client)
My bet is a bit of both 
2 Likes
I have no doubt that Tethers are not fully backed by USD, they are some fiat currency as much as the US Dollar. and it’s kind of ok, since it’s easier to send around than regular Dollars.
So that justifies the 1:1 supposed equivalency? Isn’t it usually the reverse (that dirty money trades at a discount)?
A stable coin by definition should be stable against some other coin/currency. Tether is the liquidity provider and market maker…
But how does that work if they don’t have the USD reserve?
Here is another article that may answer your question:
A few excerpts:
Tether has become an unregulated fractional reserve bank.
Remarkably, though, crypto markets still believe Tether’s guarantee. Perhaps crypto enthusiasts should read up on the fate of Reserve Primary Fund in 2008. Or perhaps Venezuela. After all, an exchange rate peg only holds until the reserves run out…
2 Likes
I never understood the function of Theter. I just ignored it and until now it went well for me so far.
1 Like
Might not be the best strategy, assuming the numbers are true and it makes up most of the BTC trading inflow
(it would obviously go well until it doesn’t and people lose trust and go for the exits)
1 Like
In mid-term or so… In the long run who cares. I’m long on everything… just buy and hold. Everything is so focused on US. But there is a world beside US and USD. e.g. I have not sold any of the XRP.
Let say it that way: my two 10yrs candles are fat green.
The fear around Tether impacting Bitcoin price is absurd. Tether is only a fraction of Bitcoin, and saying it has an impact is simply disregarding the btc fundamentals and the current institutional involvement.
That being said, there are better stablecoins than Tether that you should use, I personally recommend DAI which is open, decentralized and audited.
2 Likes
Did you read the Bullish Case for Bitcoin? https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1
Means that in Level 4 of adoption, Unit of account, we are going to use Bitcoin as major payment method. On this website you can check what some daily use goods would cost in this world. How realistic is that?
Why wouldn’t it have an impact, if most of the trades are linked to it? (I don’t know that’s actually true, but that’s what some people claim). The market cap doesn’t matter just the float/people willing to trade.
The price just measures how it currently clears whether it’s a fraction or not of the market cap doesn’t matter, what matters is which fraction of in/out flows. (Unless you’re saying there’s lots of people on the sideline willing to defend the price which seems unlikely)
3 Likes
Not very, I thought most bitcoin proponents had kinda dropped the medium of exchange part to mostly focus on store of value. There’s still a lot of advancement needed to make it usable as a payment system, at the moment it’s closer to a settlement system (4 to 7 transaction per seconds).
3 Likes