AskLeo: What Do You Diversify to Besides Crypto?
This question should be interpreted more like what would you sell crypto for, as different investments?
And when do you start doing that, if you have a rough idea? At $50k? At $100k, $250k, $500k, when you become a millionaire in fiat terms?
Personally, I don't believe I reached the point when I should take a part of my crypto and diversify in other areas outside crypto. But at 10x we might have a different situation. Maybe even lower.
Every once in a while when people around me hear about the kind of profits I make, ask me to take it out, at least partially.
When they insist, I ask this question: Ok, let's say I do that. What should I do with the money? Give me an alternative.
That's where they're blocked, because they know pretty much all alternatives suck at this point.
Right now I'm not very concerned, but as my crypto holdings will grow - as everyone else's - this may be a problem. Investing primarily in one industry, may not be a great idea.
There is of course the counter-argument. If crypto-verse develops into web 3.0, we have a different situation.
Internet is not used only by technology-related companies.
Everyone with an online presence uses it. Now the majority of businesses have at least a website.
So crypto may become a multi-sector investment. In a way it is already: social media, defi, other passive income opportunities, gaming, NFTs, and many others looking to disrupt old businesses or sectors entirely.
There is of course a systemic risk posed by regulators, but that becomes smaller as more big guns buy into the bitcoin FOMO.
But still, with the information you have available now, what would you diversify crypto into? And starting from what threshold of your crypto holdings, if you have one in mind?
I'm curious what you think of.
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