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Seconded. But having a 10% fiat position is dangerous, because it means having more and more fiat as your BTC stack grows. (Example: Let's say you have 1 BTC and $2700. As your BTC stack grows to 2 BTC and the price goes to $100k, you suddenly have to have $20k in fiat, which impedes your stacking for no good reason).
The percentage of my fiat position decreases over time, because I aim to have a fixed amount of it; not nominally but in terms of purchasing power, namely enough to pay my anticipated bills.
Aggreed, 10% could be 1% or 50% depending on the size of one's sat stack and their monthly expenditure to maintain their desired lifestyle.
I love how you talk about soft money vs hard money. I do such mental accounting in my mind too but I wouldn’t have the language to put my ideas in such clear terms. Thanks, it helps provide greater clarity for me wrt money
TLDR Spend soft money, save hard money.
Every spend of BTC I've ever made was regretted 2-4 years later.
Spend and replace only if you gain something for the extra effort. Discounts, rewards, better privacy, etc. Don't forget to replace!
Those who are 100% BTC cannot replace what they sell and may be forced to sell at inconvenient times. They also get more gains than someone who is 90% BTC but to me the risk of being a forced seller is worth having a 10% fiat position to spend from.