Inflation rate in my country is higher than the Risk Free Rate
[1]. So, technically it doesn't make sense for me to put the money in fixed deposits or debt market. To make any kind of profit with fiat money, I have to invest in Equity or Capital markets which involves
risk too.
I have tested and invested in many assets, securities, commodities, real estates over the last 6-7 years. If I analyse the performance of my portfolio, crypto investment (specifically bitcoin) has given me much more inflation-adjusted return than any other class of asset. So, I am constantly increasing the share of bitcoin in my portfolio recently. Currently it's standing around 68-69% of my total net worth (special thanks to recent rise).
• What percentage would you consider safe to invest in BTC? (This is regardless of how much you actually hold).
Even 100% is okay for me. Bitcoin is constantly meeting the expectation of investors and market, I don't see any reason why someone shouldn't invest in bitcoin. But an investor needs to understand the difference between three terms - investment, savings and leverage. Before making the investment, person should keep enough as savings to meet the emergencies and contingencies. Then considering the proven track record of bitcoin over last 10 years, I am completely fine with investing whole surplus in bitcoin. But taking loans for bitcoin investment is foolishness. Even though long term bitcoin trend is constantly positive, it is highly volatile in short term. Creating any kind of leverage by taking loan will result in high chance of losses due to fixed outward obligations in the form of interest. So, only invest surplus after making adequate savings and don't create leverage.
[1] Risk Free Rate of Return (RFR) refers to the return on the investment with zero risk. Although, RFR doesn't exist in real world but some safe assets are considered for calculating RFR. Such assets generally include fixed bank deposits, investment in government bonds and investment in debt markets. If Real RFR i.e. RFR less inflation rate is negative then it's foolishness to invest in such assets for long term.