Update from 3Q17 letter:
I might think that a 0.5% position in the Bitcoin Investment Trust (ticker GBTC) in an account could be very useful. On the one hand, using a figure discussed earlier, let’s say I think it could appreciate by 333x. That 0.5% weighting would cause the entire account to appreciate by 166%. In dollar terms, if a $100,000 account purchased $500 worth of bitcoin, which then increased by 333x, the account would be worth $266,000. If this occurred over a 10-year period, and if nothing else in the account appreciated at all, the account would still experience a 10% annualized return. Or, the account could lose $500. The equivalent of a night out at the theater, with dinner and parking.