ALL IN crypto, rebalancing portfolio

Well, almost all in crypto. Somebody should start with a small percentage of its portfolio. This should be done with all riskier, highly volatile asset classes. If not for other reasons, it allows one to sleep well. Early adopters were fortunate, that crypto assets quickly and by far outperformed all other asset classes (stocks, bonds, deposits, gold), making them the biggest part of their portfolio. 💰

Are crypto assets really riskier comparing to other asset classes? Should they really be only a part of porfolio one can afford to lose? Should they rebalance their portfolio?

The approximate global market capitalization, at the time of the writing, is 0,75 trillion for crypto, 7,5 trillion for gold, 35 trillion for physical and 90 trillion non-physical money supply, 75 trillion for stocks, 215 trillion for real estate. Crypto could more efficiently substitute some or tokenize almost every other asset class. There may be a bubble, but which one is bigger? 🎈

When crypto (decentralized, global) currencies are mainly deflationary, fiat (centralized, national) currencies are desired to be inflationary or even forced through quantative easing. This kind of monetary policy is needed, to prevent market instability, but this can also be done in decentralized manner. There are many centralized countries with a smaller, but still many with a bigger GDP, comparing to decentralized crypto market capitalization. There may be a need for regulation, but which consensus, interests are bigger?

Somebody should diversify its portfolio in order to minimize risks. What percentage of crypto assets do you have in your portfolio and is it for short or longer term? ❓

Thank You for reading and commenting.