Even If Bitcoin Drops 80%, Here's a Strategy That Still Makes Money
Published: 2026-08-27 09:25
Views: 2,219
25% Bitcoin, 25% Gold, 25% Bonds, 25% Cash. A very simple strategy.This strategy is called the Permanent Portfolio.The key to holding it long-term isn't whether you can withstand an 80% crash—it's that you always have the freedom to buy and sell.What does that mean? Suppose you have 1 million yuan, with 250,000 allocated to Bitcoin. After an 80% drop, that 250,000 shrinks to 50,000.Most people would look at a 30,000-yuan handbag or watch and not even dare to dream about it. But you're different—you can buy it whenever you want.Why? Because you simply use a rebalancing strategy:Take the remaining 50,000 after losses plus 750,000, totaling 800,000, and redistribute it equally across each pool.Now each pool has 200,000. Then, withdraw 7,500 from each pool, and you've got 30,000 to spend.More importantly, you've used 150,000 to buy the Bitcoin dip.After Bitcoin drops 80%, the Bitcoin you bought can still earn back the money you spent on the bag.So, the advantage of the Permanent Portfolio is that, in any situation, you enjoy the right to spend freely.Because every buy and sell move you make is the right one.After Bitcoin drops 80%, is a 20% rise too much to ask? Not at all.But what about your money? It goes from 192,500 up to nearly 400,000.You can also use rebalancing to sell off a portion and top up other assets. The money for the bag is earned back too.I've seen many investors living frugally. They want to buy a bag, but glance at their stocks or crypto rising or falling, grit their teeth, and hold back.In the end, they become wealthy "paupers"—patching up their daily lives while splurging in the stock market.But with rebalancing? You'll find that all your buy and sell moves are actually right!So, you can actually achieve this: splurge in daily life, and patch things up in the stock market.You can even be lazier—don't watch the market at all! Buy whenever you have money, and travel whenever you feel like it.Because at any time, through rebalancing, you complete the correct trade: buy low, sell high.So, when you check the market, you only need to go by time—rebalance once every three months. Lazy and profitable.Note, here you only need to follow time, not the market. What does that mean?You've gone from being a retail investor to the master of the entire market.And if you're always buying low and selling high, is it easy to hold for 10, 20, or 30 years?There's a Buddhist saying: "To see all forms as non-forms is to see the Tathagata." Once you use the rebalancing strategy, you'll discover:Rises and falls no longer matter to you, and you've become the one who is liberated.Recently, I came across an A-share software:
The software is impressive, with two indicators: sentiment + industry.When both indicators appear for a stock, you buy. When one disappears, you sell.But a quick AI search shows it's been fined 9 times. Is the software really bad? No.Because even with the most advanced indicators, the accuracy rate is only 60%. But over the long run, you're bound to get rich.It's like playing Honor of Kings—if you have a 60% win rate, as long as you keep playing, you'll eventually reach the highest rank.But reality is harsh—you can't bet the same amount every time. Last time you made money, next time you'll bet more.Last time you lost, next time you'll bet less.So in the end, even with the most powerful AI command system, you still lose money.After all, among the human flaws of greed, anger, ignorance, pride, and doubt, the most fatal weakness is doubt—and the market profits from your doubt.So, for the average person, the Permanent Portfolio plus rebalancing is the only solution.Because at any time, no matter how much you buy or sell, you're always right.And when the process is right, the results won't be bad either.Of course, if you want to push further for higher returns on this basis,and still be lazy without watching the charts, you can join our community—we have more advanced strategies.After joining, contact me to add me on WeChat. We'll discuss via Tencent Meeting.
