Haha, how so? Bitcoin is the only asset which outperformed everything else in the last 3 years. So yes, it is the ONLY (next to Housing and Gold, maybe - based on the numbers: Bitcoin also outperformed Gold) are the only hedges against inflation. Even if you went all-in FAANG, you barely kept your purchasing power.
Concentrated trades is how you get wealthy, spreading your bets is keeping your wealth.
But this is a once in a liftime chance. I can‘t believe people on a tech forum are so blind to the fact that we are in control for the first time. Hedge funds dump money into a system which they can‘t read or understand. It was the opposite for hundreds of years. The average Joe had to trust the financial world. Now YOU can read the code the money runs upon, all in the open.
So yes, show me how you did perform with your FIAT money in an age of money printing.
Your words were true up until 2008, everything after that: Throw away your old school investment books, they don‘t work anymore.
“Hedging against investment risk means strategically using financial instruments or market strategies to offset the risk of any adverse price movements. Put another way, investors hedge one investment by making a trade in another” - https://www.investopedia.com/trading/hedging-beginners-guide...
What inflation/devaluation are you hedging against, if all your money is in crypto?
Haven't I said? Inflation. Have you checked house prices or asset prices lately in terms of the balance sheet of the FED?
Bitcoin is the only asset which gave you a real return in the last, maybe 10 years. Even if indexed the NASDAQ or whatever, your real return was probably below 0.
You can copy paste a lot of definitions, that's great. Just tell me how your returns were and how you measure them. If you measure them in Dollars, then show me what your money buys you now versus what it bought you 10 years ago.
You can say I am hedging against the devaluation of FIAT currencies.
The point is that that isn't what "hedging" means. If all your wealth is in one thing then you take on all of the risk with that thing. Property, fiat money, diamonds, cryptocurrency, whatever. How big a risk you perceive that to be is irrelevant.
The "debates" on HN about crypto always devolve into the pro and anti factions talking past each other which is very dull. A little linguistic confusion makes a nice change.
Going all in on crypto (or any other asset class) is the opposite of a hedge.