Micro-cap stocks could plunge 90% in a crisis with little chance of recovery, while Bitcoin and MicroStrategy would fall like other high-volatility assets. Large banks like Bank of America offer more safety through deposits and regulation, but the S&P 500 is positioned as the most resilient choice for preserving capital.
Let's say we get another COVID panic or whatever the next black swan is, and all of a sudden stocks are panicking really quickly, really fast. We're going to go microcap bullshit and say that's down 90%. Then we're going to say the S&P 500 down 90%. Then we're going to say gov bond. The number of eyes on this microcap bullshit ticker and the amount of capital on the sidelines that wants to move into microcap bullshit, not that many people. The probability of this bouncing or then bouncing all the way is going to be very low, right? So then if we take something like MSTR, holds Bitcoin. So Bitcoin in a crisis, I don't really know how that's going to perform. I would say it's going to function like a risk asset like we've seen in the past. Bank of America is a very, very large company, pretty good deposits. It's well regulated for the most part post-2008. It's a hell of a lot safer than something with, you know, a bunch of debt buying Bitcoin. And so this starts to be kind of appealing. Even safer, though, is going to be a diversified basket of the 500 largest companies. And so once we get that diversification, this becomes even more appealing.
