⚠️ RISK DISCLOSURE: Bitcoin is highly volatile. Only invest what you can afford to lose entirely. This is education, not personal investment advice. I am not recommending Bitcoin as an investment. I'm sharing my personal approach and educational framework. Consult your financial advisor about your specific situation.

Hey Reader,

Last week, I helped a retired sergeant major discover $47,000 in unclaimed VA benefits he'd been missing for years. The same day, he asked me about Bitcoin. My response to both situations was identical: 'Strategy beats timing, every time.

Here's the thing—whether we're talking about maximizing your military benefits or allocating to Bitcoin, most veterans focus on the wrong question...

Exponential Advisor

What's your biggest Bitcoin concern?

Don't understand it yet

Worried about volatility

Don't know how to start

Already invested, want to learn more

The Strategic Case for Bitcoin Allocation

After extensive research and portfolio modeling, I've concluded that a 3-5% Bitcoin allocation makes sense for many investors—including veterans with 10+ year time horizons. Here's why:

Portfolio Diversification Math Modern Portfolio Theory shows that adding uncorrelated assets can improve risk-adjusted returns. Bitcoin's correlation to stocks? Just 0.2 over the past five years. To bonds? Nearly zero.

This means even a small allocation can improve your portfolio's Sharpe ratio (risk-adjusted return).

The Institutional Shift

BlackRock now manages $40+ billion in Bitcoin ETFs
Major corporations hold Bitcoin on their balance sheets
The military's own TSP is exploring digital asset options

When institutions move, it signals maturation, not speculation.

Bitcoin Is For Preppers, Veterans, Democrats, and British Royalty

A Model Framework: The 5% Rule

Here's a hypothetical approach (not advice, but a potential strategy):

Core Portfolio (93%)

Stocks: 60%
Bonds: 20%
Real Estate: 13%

Alternative Assets (7%)

Bitcoin: 5%
Ethereum: 1%
Gold: 1%

This allocation leans into Bitcoin's potential upside without going into "degen" mode.

The Veteran's Advantage

You have unique advantages for Bitcoin investing:

TSP's lifecycle funds vs. Bitcoin correlation
How VA disability payments (tax-free) affect investment strategies
Capital gains considerations for military retirees in lower tax brackets

Critical Warnings (Please Read)

Bitcoin isn't for everyone. Take this Risk Tolerance Check:

Never invest more than you can afford to lose entirely. This isn't pessimism—it's prudent risk management.

How to Start (The Right Way)

If you decide Bitcoin fits your strategy:

Step 1: Education First Read "The Bitcoin Standard" or my free guide (reply "BITCOIN" to get it)

Step 2: Choose Your Platform

Beginners: BlackRock or Bitwise Bitcoin ETFs
Intermediate: Coinbase or Kraken
Advanced: Self-custody with a hardware wallet or multi-signature configuration (Unchained Capital)

Step 3: Dollar-Cost Average Instead of investing $1,000 at once, invest $100 monthly for 10 months. This reduces timing risk.

Step 4: Set It and Forget It Check quarterly, not daily. Emotional investing destroys returns.

The Bottom Line

Bitcoin is a tool, not a lottery ticket. Used strategically at 3-5% of your portfolio, it's a calculated asymmetric bet. The downside? Limited to your small allocation. The upside? Potentially significant over 10+ years.

But remember: No investment, including Bitcoin, is guaranteed. Your financial plan shouldn't depend on any single asset performing well.

The information presented in Exponential Purpose is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through Exponential Advisors, an investment adviser registered with the state of Texas.