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Rethinking Risk and Bitcoin Investing
Risk perception varies significantly with education and experience. Many people misdefine risk, particularly as they age and become more reliant on dollar-based cash flow. For older individuals, placing a portion, like 10%, of their wealth into Bitcoin is viewed as a relatively safe strategy, especially given its past performance over 15 years. Younger investors are encouraged to consider even larger allocations to Bitcoin or similar assets. This shift is particularly relevant in the context of the current late-stage debt cycle, where Bitcoin's perceived risk has decreased, particularly concerning technology risk, which has been mitigated over time. The ongoing advancements in encryption and digital signatures offer further assurance against future technological threats. Younger, more tech-savvy individuals who thoroughly research Bitcoin are likely to conclude that a significant investment in it is warranted, potentially advocating for allocations between 10% to 100% of their portfolio.