Both Stars and bitcoin can have 65% drawdowns. I believe volatility is key to exceptional performance. With low risk you have very low returns. Over the past 70 years diversification and risk adjusted returns have produced returns that are 5% per year below the S&P. The very high volatility of TQQQ in the Stars buy and hold strategy produces returns that are twice the S&P.

The Stars base model does not include bitcoin, but a variation does. If you are going to own bitcoin Stars very high returns provides a safer way. The profits of rebalancing TQQQ are used to buy bitcoin every year. There is room to have up to 40% bitcoin in your portfolio. If for some reason bitcoin was to go to zero the expected Stars 25 year performance would fall from 17 times the S&P to 10 times the S&P which is still exceptional performance.

Bitcoin is an alternative investment and acts as a hedge against inflation which is the greatest risk an investor faces. World debt is out of control. With inflation most S&P companies will face reduced returns because of higher raw materials and labor costs.

Bitcoin is not for everyone but if you are going to own a large amount, the Stars model is the safest way to own bitcoin.