tgoop.com/altchica/4700
Last Update:
Lets put a better analogy to the perspective of crypto etf fund managers and make you think like how the wealthy will think.
Lets say your portfolio is worth $30k, and your lifestyle needs are $50k a year. In your mind, putting your $30k into sustainable and 4-10% dividend/interest portfolio makes no sense as nothing in your life will change. You are more prone to taking leap of faith into hopium of BTC becoming $1m as that is when your portfolio will become self-sustaining. Your $30k will become $300k and a 10% interest or dividend or capital growth will give you $30k a year. It might not be life changing, but hey...its paying your rent, its enough to pay your mortgage without working. You have achieved some sort of a level of fuck you money, where you have the flexibility of not working for an asshole boss if you choose not to. You no longer have the headache that you can't afford rent or mortgage money if you leave the job.
Once you have achieved that, would you want to risk your $300k the same way you did with your $30k? Of course not! Loosing this $300k will AFFECT your lifestyle, but loosing that $30k will not change a thing of how you go on about your daily life (work, sleep, eat, repeat).
Now if you get conservative with just your $300k in order to preserve its value...think of someone with 2 billion dollars of portfolio. Say their lifestyle needs are 10 million dollars a year. They only need 0.5% interest/dividend/capital appreciation per year to sustain their lifestyle without eroding the main capital. Why the fuck would they keep their assets in volatile market when well established dividend aristocrat stocks are providing 7-10% yields? They not only get such high yields but also tangible assets that you can touch and feel and see which have real-world value, such as a piece of land vs owning a digital token.
Now, back to the point, if your spot positions had nothing to contribute to this crypto markets pump cycle, and it was mostly all these billion dollar funds and etfs, then which play do you think is going to playout? What do you think is more likely? Once Trump gets to office, that he will put his $6 billion networth into "crypto" that he earned by working over 60 years for it and become the crypto Messiah? Or cash out on whatever he has gained and move it to sustainable and established businesses to preserve the 60 years worth of his working life's capital?
BY AltChica
Share with your friend now:
tgoop.com/altchica/4700