USV’s Fred Wilson Dismisses Bitcoin Crash Prediction, Explains Optimal Crypto Holdings
Prominent venture capitalist and Union Square Ventures co-founder Fred Wilson, who previously mentioned banks are oblivious to bitcoin’s best feature, recently published a blog article where he clarifies how much each kind of investor should place into cryptocurrencies, at a response to news that led people to think he said investors must have 10-20% of their net worth in crypto assets.
He pointed to a tweet that he needed to fix, revealing how things could be researched.
That’s wrong. I said 10-20% for “true believers”. I think something like 5% for sophisticated investors might make sense
— Fred Wilson (@fredwilson) October 14, 2017
Wilson, who initially got into bitcoin at 2013, chose to find the record straight and began by clarifying which he has “roughly five percent” of his net worth in crypto resources, across various vehicles. These include token funds, USV funds, direct holding, and much more. According to him, the portfolio is “probably much more diversified than many folks could do independently.”
To Wilson, the sum he has in crypto resources is about the high end of what the typical person should have. He said:
“I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have.”
He compared the figure with the feasibility some put onto venture funds, realizing it’s a risky asset with a possibility for outsized returns. Wilson added that the most significant allocation he’s viewed to venture capital from a significant endowment or retirement fund is of 10%.
The 10-20% rumor that circulated was the amount he considers “true thinks” in cryptocurrencies and blockchain technology ought to invest. To some true believers, since he points out, which could still be a conservative number, as some may get to 80-100% of what they have.
Based on Fred Wilson, here is how much each Kind of investor must put into cryptocurrencies: a youthful, aggressive risk taker should get 10% of his net worth in crypto assets, while a sophisticated investor, who might not be such a risk taker, should go with 5 percent:
Conservative, regular investors, that would like to undertake some danger, ought to go with 3 percent, and investors in their retirement age should not invest in cryptocurrencies. Wilson’s motivation to publish this blog article was to “put the record straight.” Per his own voice, viewing folks tweet out information that he did not give makes him anxious.