Our Bet For Bitcoin In 5 Years
How to include it as part of an asymmetric portfolio
Being a short-term investor can only make you a millionaire if you get it right once and live by cheating society for the rest of your life. If not, what you should do is look at the long term. One of the main investment theories of those who want to look at the long-term cycle is Ray Dalio's long-term debt cycles theory.
These rhyming macroeconomic trends resurface every several decades and cause large-scale economic and social upheaval. While each cycle is very different, the climax is always triggered by massive debt, threadbare interest rates, and currency devaluation.
These factors consistently combine to destabilize global systems and result in macro phase changes. That means the end of eras on a global scale: empires falling, wars, currency rebases, and major demographic shifts.
This is a situation very similar to what we have today. We are reaching a climax through massive debt, where the currency and FIAT money is losing almost 1% purchasing power per month.
Believe it or not, in an environment where it seems that all assets are losing value, having an anti-fragile portfolio may be the only way to get positive returns.
Why have an asymmetric portfolio?
Sadly, most people with big ambitions of success fail to achieve their goals - not due to lacking skills, but due to not having an efficient financial strategy to handle their risk and set themselves up for success.
Even for those who succeed, poor money management practices routinely lead great fortunes to ruins.
Therefore, it is very important to make excellent risk management and to avoid that under no circumstances do we lose a large portion of our portfolio in the stock market. For this, it is very important to have a part of the portfolio in very low-risk assets while having a small part in assets with a possible huge upside.
Sooner or later, the stock market will reward you. 70% of the people who amass a great fortune lose it to the second generation, and 90% of those millionaires, the wealth is lost to the third generation.
The big bet
Today we can hold on to this generational wealth for much longer. It would be as easy as leaving private keys of a ledger in the will but only accessible X years after death.
But before that, it is very important to understand Bitcoin and the potential upside that it can achieve.