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Fred Krueger, a notable figure in investment strategy, suggests that the Kelly Criterion recommends a significant allocation to Bitcoin in a binary world of only Bitcoin and cash. According to his interpretation, 76% of the investment should target Bitcoin as opposed to cash for optimal growth.
Krueger further argues that even when considering broader technology investments, Bitcoin still emerges as a more favorable alternative. He likens Bitcoin to a superior version of the QQQ ETF, which consists of a basket of technology stocks, suggesting that traditional finance (TradFi) will eventually recognize Bitcoin’s potential comparative to established tech indices.
Krueger’s conviction in Bitcoin’s long-term prospects not only challenges traditional investment paradigms but also mirrors his previous scrutiny of market dynamics, including his assessment of MSTY distributions offering striking returns. His readiness to confront prevailing sentiments recalls moments when he directly challenged Bitcoin short-sellers with a bold statement amid heightened volatility.