Yep, it's awful. I teach a Masters Data Literacy course, and one of the topics we cover is about how to adjust the vertical axis to spin your data. The one benefit I found in this ABC article is that it has now given me another example graph to use in that class next year:

To be fair that's how most financial graphs are shown i.e.

Spectacularly dumb, ill-informed nonsense. Demonstrably so with most of the assertions Verrender makes.

Honestly, it's not a different perspective that triggers me -- each to their own, I say. What gets me is all these false assertions that are presented as fact, when even an ounce of due diligence would, at the very least, cause you to temper the rhetoric. I mean, isn't the job of journalism to get to the truth?

I shouldn't complain. The fact it is so misunderstood is what makes it such a compelling opportunity.

Ah yes, that old chestnut with the axis..

I just didn’t know the story got through the gatekeepers at the ABC.

i know firsthand how much rigour they are put through to keep some resemblance of balance…but dear lord that was biased enough to be on sky news…lol

This is probably in the top 5 dumbest and most ill-informed articles ever written. Anyone with access to the internet can see that the Genius Act is focused on Stablecoins, not Bitcoin. Sure, Bitcoin got caught up in the excitement, but if you are going to put your neck out as a credible journalist, you need to do some research. 

If nothing else, a quick Google search will show just how normal a pullback of the likes we are now seeing is. @Strawman puts it so well: you cannot get on board with Bitcoin and that is fine, but if you are going to bag it, at least make sure you have the bare minimum of facts. I really can't say how much I regret reading this article and wasting a few minutes of my life.... 

As someone with over 50% of their net worth invested in Bitcoin, I currently have 1 regret... I don't have additional funds to buy more at these discounted prices.

Wow @BigStrawbs70, "50% of net worth in Bitcoin". That's a massive bet. Have to admit reading that made me flinch - it goes against a few deeply ingrained principles of mine. Each to their own, of course. I admire your courage and wish you every success. So this isn't a criticism. In fact, the opposite, your approach made me stop and question why I had my gut reaction. And my response is unrelated to Bitcoin specifically, I'd have the same reaction to 50% invested in any single volatile investment.

I'd value hearing your different perspective on a couple of commonly held investing principles:

1) Diversification: Even with my highest conviction investments, I'm not confident enough to put 50% in one spot. If a casino had roulette wheels with 2 blacks to every red, I might be willing to put 50% on black across 10 tables. But wouldn't put all 50% on a single bet. I'm guessing your conviction behind Bitcoin is just massively bigger than all other potential investments?

2) Survival: If you get a massive cash need (eg medical needs) at a time Bitcoin is down, that could hurt. For many, a 50% bet that goes sour could derail them for many years. But maybe you have this covered with cash elsewhere or overall size of portfolio relative to current and potential expenses. Admittedly I'm writing this from the perspective of being retired. Our net worth is plenty for my family to be very comfortable, so I don't feel the need to take big bets. And I no longer have business or salary income to help me recover from a big loss.

Again, please don't take this as criticism. It's fascination at someone taking a very different approach to investing. Variety keeps life spicy!

Hi @DrPete Firstly all good, I 100% understand and appreciate your question. It is good to have folks challenge what I am doing as if I cannot explain it, then I need to reflect on what I am doing.

Let me start with a disclaimer. I am not suggesting for one minute anyone should have more than a few % of their portfolio in Bitcoin. For me, I have always had reasonably high holdings of the companies I invest in; my real life portfolio is 95% Bitcoin, Berkshire, Soul Patts and the NASDAQ top 30. I do give myself a few % to directly invest in companies to play with but I like the idea of investments on autopilot and just add to them each quarter or so when I have some spare cash. Not that long ago, Berkshire and SoulPatts were over 60% of my portfolio alone but Bitcoin has obviously gone much much higher since then.

I should also highlight that Bitcoin did not start out as 50% of my net worth. I got into Bitcoin reasonably early, and have been buying ever since. So I did not sell my house or sell my Berkshire or SoulPatts shares. So while I still DCA into Bitcoin, the total has risen to over 50% (pretty much) from its price appreciation.

So with that background out of the way, in terms of your questions:

As touched on above, Bitcoin price appreciation has seen it grow to this level in my portfolio and I have a strong conviction that it will be many times higher in 10/20/30 years. Bitcoin will continue to be volatile for a period of time yet but I have held during the 80% pullbacks and I was fine with that, similar to when Berkshire has 'crashed' in the past as well. Further, Bitcoin, NASDAQ, Berkshire and SoulPatts provide massive diversification and combined have beaten the market (in whatever way you want to measure it) by a very wide margin. Sure, Uncle Warren is stepping down and Uncle Robert at SoulPatts will also step away soon but I am very comfortable with the culture they have created.

I am, for all intents and purposes, retired also and have structured my finances to have 2 years of 'cash' (mixture of AUD, USD and some Gold) on the sidelines to ensure I do not have to dip into the principal when 'things' go a bit crazy. BTW: The USD and AUD are spread across cash in the bank and 4 fixed term deposits that come due in 3, 6, 9 and 12 months duration; the theory is this keeps the cash in real terms the same and means I always have cash at hand and more available if needed. I should also highlight that 2 years reflects that I know large drawdowns are not only possible, but are the price of admission for these crazy internet beans.

Apologies for the long reply but I wanted to give the correct context on why I am being a bit crazy lol and what I have also set up to ensure I sleep well at night, even when Bitcoin has its normal drawbacks such as recently.

Hope the above makes some kind of sense.

Awesome, thanks for your thoughtful reply @BigStrawbs70. Agree that NASDAQ, Berkshire and Soul Patts provide solid diversification to balance your Bitcoin bet.

There's truth in "let the winners run". So I can understand why you've taken that approach with Bitcoin.

My personal approach, for most shares, is to stop further investing once a holding is >5% of my portfolio, and start to trim once it is >10%. If the stock is popping faster than I'm trimming it can still become a big holding.

Eg, I've been regularly trimming Stealth, but it still got to around 30% of my portfolio at one point. As it turns out, I would have done well by leaving the money in Stealth. But I believe I've reduced risk by spreading some of the gains. In some cases that money has done better than if I'd left it in Stealth. In other cases, it's sitting in opportunities that I think have higher potential ROI than Stealth. But Stealth is still over 15% of portfolio. I'll keep trimming that about 0.5% a month until it's back to 10%. Or faster if I think it becomes over-valued.

Overall I love the simplicity of your 4 big holdings. That certainly involves less research time than my approach requires. But I enjoy the process. And Narelle is happy that it keeps me busy in retirement and not annoying her too much :).

I'll continue to watch your Bitcoin bet with great interest. I'm comfortable sitting on the sidelines. But I find both the tech and investment opportunity fascinating. No schadenfreude from me. To the moon!

Mmmm fully franked bank dividends... music to my ears :D

It's music till it stops playing ;)

Don't get me wrong...I love 'em too, but not at the expense of the total return picture.

Hi @BigStrawbs70 I’m looking into setting up an SMSF to roll over some of my super into BTC. I’ve been researching SMSF "experts" who specialise in Bitcoin (UDO SMSF and Easy Super in particular), but I’ve noticed a few red flags (in some). The alternative seems to be boutique SMSF specialists, but they’re charging an arm and a leg for their services. Are there any SMSF specialists you’d recommend?

Disclaimer: I have more than 50% of my RL investments in BTC and have been in the space for a few years now. I don’t need more conviction, just more fiat. :)

Ha @skaex

I use eSuperFund and have been for many years. They are cheap and while you do need to do some coding of transactions, the vast majority of matters are automated. They also take care of all the paperwork for establishing the SMSF. You just need to answer a few questions and sign your life away on a few pages.

The only potential downside, which I am fine with but others may have a different view, is to get the full automated services means you have to use CMC.

Once set up, you can buy and sell shares, fixed terms, property, or anything that you want. Again, the extent to which the service is automated will just depend on what you use their software for. So you could hold your Bitcoin on your preferred platform in the name of your SMSF or, as I prefer to do these days, just hold it via an ETF. With these folks, you have full choice to do as you want.

It is certainly worth checking them out.

To confirm, I do not get any commission or anything for recommending them. I am just suggesting as I find the platform and their services provide good and great value.

Thanks @BigStrawbs70! I’ll definitely check them out. I usually keep all my BTC in self-custody (not your keys not your BTC :), but I can see why holding it via a BTC ETF in an SMSF makes sense.

No problem at all @skaex

I personally think we are past the 'not your keys not your Bitcoin' stage given the adoption of Bitcoin into the financial system. I also shudder to think about losing my keys or something happening to me and my family cannot access the keys.

Yes, there are multi-sigs and the like, but I personally do not see any advantages of self-custody these days. When I first had Bitcoin I did self-custody as regulations and lawmakers could have gone either way but we now have full adoption into the broader financial system. So there is no chance of Bitcoin being banned or confiscated in Australia, or most other advanced western countries.

If we ever got to a stage where the government banned it, they already know you own it even if you are using self-custody. A knock at the door could be expected in that dark dystopian world at 2am in the morning. So the notion of being fully in control of your Bitcoin via self-custody reminds me of Bane's quote in the Dark Knight Rising 'Do you feel in control' :)

All that said, if my money was held in a different country without property rights and the rule of law that we are so lucky to enjoy, then the conversation is totally different.

Lastly, I lean to the view that 'not your keys not your coins' is like saying 'not your shares not your ownership rights' when it comes to holding the NASDAQ ETF. OK, it is not a perfect analogy but hopefully you get my point.

All that said, I guess one of the cool things in this space is that there are options so we can all do what we are most comfortable with. As a wise Strawman has said: You do you my friend.

Not to be a pedant @jcmleng, but I have never been, and never will be, an advocate for "cRyPto".

Bitcoin and Fartcoin (and it's ilk) may share some similarities in terms of the underlying technology, but they couldn't be more different.

Like saying a penny dreadful cash burning minerals explorer is the same as Berkshire Hathaway. They are both equities, sure. But not even close to being in the same league.

Nice TA @jcmleng. I also happen to think we are close to a buy point (given a multi-year outlook), but it may have a flush lower to hit those support levels below before it takes off again.