Hello Mustachians! I'd love your cool-headed objective take on this decision since it can get kinda spooky for me to be thinking about how I'm dealing with a WHOLE BUNCH OF REAL MONEY.
I've been livin' the Mustachian life for about the last five years, so selling, holding, or losing a bunch of crypto value wouldn't substantially change my life. I'm optimistic about crypto but ideally would like to have it be less than 30% of my portfolio.
Selling crypto down from 81% to 40% of my portfolio in 2018 was a fantastic decision, and if anything I wish I would've sold more: I would've felt much more comfortable buying it back when it dropped to 11% of my portfolio in 2019-01 (see graph below).
Downsides of selling:
- 25% capital gains tax
- miss out on the potential upside if bitcoin goes To The Moon™️ in this cycle
- maybe I should just be keeping a Jason-Bourne-style hoard of intractable decentralized currency forever and buy things straight from crypto instead
Upsides of selling:
- Crypto is volatile, and the long term game here is to build up my stock 'stash. It's cool that we have this new digital decentralized money, but money itself doesn't create as much wealth as businesses do
with the money.
- modern portfolio theory would say to rebalance right now (...right?) and that's the model I'd like to be following
- with a stronger stock backbone I'd feel much more comfy buying back more crypto the next time it goes on sale
What should I do? What would you do? What investing books should I be reading to improve my strategy here?