Short answer, yes I am. As an investor, I try to allocate my assets equally among stocks, bonds, real estate, precious metals, business ventures and Cash. There will be further allocations within each asset class as well. The most liquid of the asset class is of course cash, hence it forms an important part of any investor's portfolio. Now what form of currency will you be holding? Perhaps the US dollar, euro, Philippine peso, yuan will be among those. What about bitcoin? Here is a video where Winces Casares explains why Bitcoin works as money:
Although he says that bitcoin is superior to gold, I will not be in a rush to sell my precious metals and buy bitcoin. That does not make sense from a risk management point of view. However I am quite comfortable exchanging 5% of my Cash Holdings into bitcoin. Some people will say that bitcoin has no intrinsic value. Well all forms of currency have no intrinsic value, and it is impossible to predict the future exchange rates. Just as no one can predict what the USD to PHP exchange rate will be in a decade, it is also impossible to predict what the BTC to USD rate will be. I must admit that what attracted me to bitcoin is its impressive performance, one bitcoin is now worth $3700. But more than that, it really works well as money, as a medium of exchange and more and more people are using it. A warning though, it is not for the fainthearted as the exchange rate is very, very volatile. Simply because its market cap is tiny compared to the trillions among the fiat currencies. Hopefully as its use becomes more and more widespread, this volatility will also decrease. It is pointless trying to predict which currency will rise over time. So the best thing to do is to diversify one's cash holdings and bitcoin will certainly form part of mine. Happy investing!
