Bitcoin & money learning · Retrospective
Measure a position in the whole portfolio
Use a consistent denominator when describing concentration.
Source foundation
Diversification considers exposure across investments, including overlapping fund holdings. Investor.gov: asset allocation.
A worked example
A hypothetical 10,000-unit portfolio contains a 1,000-unit speculative holding. That is 10 percent of the portfolio. Calling it half of a 2,000-unit trading account is also arithmetically true, but answers a different question. A report should identify which total it uses.
Original hypothetical example. Amounts, people, events, and scenarios above are invented for learning; they are not historical observations or forecasts.
What to take from it
Percentages become misleading when the denominator is hidden.
Try it on paper
Describe the same holding using both denominators and label each.
Keep the assumptions beside your answer. Check the result before applying the idea to a different situation.
Reading and limits
The linked source supports the foundation statement. The worked example and exercise are NAKAMOTO's educational analysis. This note does not establish current prices, product terms, investment suitability, or wallet compatibility.
Source reviewed 13 September 2026. For operational decisions, consult the current official documentation and the details of your own circumstances.