[fierarul]

What rational investor sees the loss of 100% a limited downside?

By the same logic any rational investor should own some Tesla stock: hide potential upside in battery tech going forward and "limited" downside.

Problem is at least one of these options has some fundamentals.

[ralfd]

There are option positions with _unlimited_ downside:

https://www.investopedia.com/ask/answers/050115/what-types-o...

[insert_coin]

If $1000 is 1% of your portfolio it is only a 1% loss, which is less than nominal inflation.

[fierarul]

I think you're getting somewhere but in terms of risk allocation. It may be optimal, overall, to allocate a small portion to high risk assets in case of a big payout.

But... I think in many ways BitCoin has passed that point. There is never going to be another 100x growth. Time to find the next thing.