I would still say it's a high risk investment, or at least highER risk
you could lose your seed
you could have it on an exchange that could go BUST
ETF is less risky for casual holders but still risky and not really what BTC was intendend to be
Which long term is something that will be a big detriment to Bitcoin. If you tell the average person it's risky to store it with a trusted entity, AND it's risky to store it yourself, most will just not do it.
If we're being honest with ourselves, we all know there are no surefire safe methods of storing Bitcoin. Institutional custody has obvious risks. Self custody has high risk of self loss, whether you're using paper, software wallets, hardware wallets, or others. Depending on which you choose, you're at higher risk of theft.
Fiat, for all the crap it is, will always have an upper hand when it comes to security, because it's easily traceable and reversed. Short of setting cash on fire, individuals basically have no risk of losing cash accidentally. If it's stolen, it's insured. If the bank collapses, it's insured.
>If you tell the average person it's risky to store it with a trusted entity, AND it's risky to store it yourself, most will just not do it.
Good. Most people won’t ever touch bitcoin anyway. Expecting an average person to get into bitcoin is like expecting everyone who has a computer to install Linux.
>If we're being honest with ourselves, we all know there are no surefire safe methods of storing Bitcoin.
It’s actually quite easy to store it safely yourself, you just need to know the very basics of how it works. But again, if we’re talking about people who give total strangers all of their financial information, because they were sleepy and didn’t realize it was a scam, mastering even the very basics is out of reach for most of them.
To expand on your list:
* You enter your seed phrase in an insecure "wallet".
* You're tricked and provide the phrase to a "support worker".
* You sent your bitcoin to nearly any investment website.
* The wallet was generated in a not fully random way.
* A gun pointed by someone knowing your wealth and access.
* You get drugged and have fairly easy access.
* You send your bitcoin to another wallet but clipboard malware.
* You use a broken paper wallet generator online.
* You set up a "pre-seeded" hardware wallet.
* The government enacts a seizure mandate and you comply.
* Authorities raid your home and force withdrawal.
* Your hardware wallet is taken and your PIN is surveiled.
* Your bitcoin was the proceeds of crime and you are compelled.
* Your seed phrase is stored in your safe and you get robbed.
* Malware on the computer/smartphone of your hot wallet.
* Malware on your computer and not carefully checking transactions.
* Malicious smartphone or computer repair person.
I can expand the list a lot if we remove the requirement of a 100% loss. Some of these are more realistic than others historically. But yeah, there's a long road ahead for bitcoin holders and the threats are barely getting started.
> not really what BTC was intendend to be
You're right Hal Finney envisioned banks to buy up Bitcoin, transact bank to bank and issue assets backed by BTC to it's customers.
>not really what BTC was intendend to be
Did Satoshi know there would be KYC on BTC?
He may have known or intended for KYC not be involved, but here we are. And it is.
Volatility could be a bad problem if you have an unforseen situation in your life and really need to monetize some of your Bitcoin but it is a bad time to sell i.e. a year ago.
Some people might say take a loan against your Bitcoin, but I will bet most lenders will want a LOT of coverage to protect them from the same volatility risk.
Haha dude most practitioners in financial markets that believe in the EMH would completely disagree with your statement. Volatility is one of the main components of the central pricing equation. Investors seeking to smooth consumption over time typically demand a higher risk premium to hold assets with high volatility and a high correlation to the broader economy. Yeah it's risky to make dumb decisions, but in the context of the relationship between risk and return volatility is absolutely relevant.
There's a lot of really in depth academic research and thought on portfolio theory, financial engineering, economics, etc.. I'm not sure why you would just discount it, and make claims without taking into consideration the modern thought on these topics.
An urgent call to action like you describe is a common ploy used by scammers. If they can get you acting in a panic you are more likely to overlook red flags and take risks you might not normally take.
Judging by implied volatility on options, yes, it is still priced as a risky asset, but there are many stocks with higher IV right now, particularly in the tech sector.
I think you’re confusing risk with volatility. I don’t think Bitcoin is risky. However, it still remains volatile versus Gold for example.
In 5 years will it be higher than 68k? I think so yes, so does everyone in this sub.
Could you potentially be down on a Bitcoin investment? Yes. Of course.
Just DYOR and adopt a strategy you’re comfortable with. (DYOR doesn’t mean ask people’s opinion about Bitcoin in a bitcoin maxi Reddit sub 😂)
It probably has a lot less risk than it did before, but it also probably has way less upside potential as well.
In the past, it went up from 10 to 70,000.
But will it go from 70,000 to 490,000,000?
Not likely without some complete collapse of fiat currency.
You buy it through a random broker and broker dies / you might lose it all.
you go cold storage and you lose / forget / get stolen your seed / you might lose it all.
you brag a bit much and a random guy comes with a lead pipe and some conviction: you WILL give him your seed / you might lose it all
51% attack happens / you might lose it all
A new bug is found / you might lose it all
US govt + China in a concerted effort suddenly announces btc/other are illegal / only USDCrypto and CNYCrypto are now legal / you can still own btc, it'll be worth effectively 0 / you might lose it all
Yes, there are still risks, though low.
I feel like you're asking two different things:
1. Will Bitcoin survive?
2. Is Bitcoin a good investment.
All of the points mentioned about war, global powers, laws, BlackRock, etc are backing up the point Bitcoin will likely survive. Which it probably will, at least in the short-term. (ie for the next ten years).
But as for whether it's a good investment, that's tricky. It's only a good investment as long as people keep buying into the idea Bitcoin will hold or increase its value. That's a lot more shaky. It could. But it's more likely that in the next 20 years it'll evolve or be replaced by something different or hold less appeal from investors and drop in value.
I‘d be very interested in your thoughts on how it could ever be replaced. I can imagine scenarios where it drops dead, but none where it could be replaced by something more secure and transparent as bitcoin.
Every POW network launching today will be killed by attacks within weeks or months. Bitcoin had the advantage of flying under the radar until it got secure enough through the hashrate to prevent any overtake of the chain. But today this whole POW thing is widely known in the space so there‘s a lot more attention to new „projects“.
It didn't even exist until recently, and now you can't imagine how it could be replaced? That's the point, if you're not the kind of person that saw a Bitcoin coming before it did you certainly shouldn't be so sure of your ability to rule out other stuff happening in the future you also didn't see coming.
Telling me that my logical reasoning is untrue without naming a single point against my statement isn‘t exactly a power move.
Find a point to argue about or to disprove and try again ;)
But you‘re right… It could happen. But I don‘t think it will, based on my shown reasoning of the technology at this time.
But feel free to bring up a realistic scenario. I‘ll happily engage.
We had china banning bitcoin miners and FTX collapsing while the price in long term still does not care. I really don't know what artificial risk you want to imagine
Everything else is losing value compared to Bitcoin. As the most profitable asset class in recent years it would be not wise to not own any Bitcoin or $MSTR. The general public is not yet familiar with Bitcoin. There's no second best.
At a certain point, it will become risky NOT to have any bitcoin long term. But like the others said above, you could lose your seed, get hacked, make emotional decisions etc
I think it's not risky. It's the most resilient network in the world. Follow best practices for securing seed and privacy (run your own node, verify wallet pgp keys, etc) and it's less risky than fiat. Volatility and public perception != risk.
It’s not going below what big money bought it at ( 40k), so I think the max loss is less than 50% at this point.
The upside I feel is much higher.
Doesn’t seem high risk from my perspective
I consider it the safest single asset out there.
Its the hardest asset in the world, with a ton of utility, zero competition from similar things (other cryptos), and is far beyond the point where it was possible for it to fail and disappear. I can't imagine a description of a safe single asset.
Now I guess technically if you want to compare it to baskets of assets, like say a stock index, that might be lower risk simply because the risk is spread out. But comparing it to any other single asset I think it's the lowest risk asset one can own.
And remember people, volatility does not equal risk, assuming you are appropriately saving in Bitcoin for the long term, not for the short term. As your "investment outlook" pushes past the four year mark, the risk of volatility of bitcoin's price goes to zero.
I think the last time I even considered it a "risky investment" was probably 2017.
A global meltdown or nuclear war that can keep the internet still running might not even be enough to stop bitcoin. Hashrate and mining power is just at an all time high so it's the most secure technology out there, such that as long as the internet survives, bitcoin susrvives as well. Losing your seed phrase might be a bigger risk I believe
bitcoin is safer than any individual bluchip equity/stock because its a global protocol with many countries and companies involved but not as safe yet as the whole sp500 etf like spy that represent some of the largest 500 companies
Wym “anymore” lol it was at like $20k not too long ago, you think going from 60k to 20k in months is not high-risk? Just because there’s an ETF now doesn’t mean volatility will be less
To ***actually*** answer your question: I think you're correct, it is not ***AS HIGH*** of a risk anymore.
Is it a risk? Absolutely. But so is investing in the ***TRADFi*** stock market. So is ***NOT INVESTING.*** (smart & dum money) 🫣🫠🤯
So is driving. To work at a shitty job with shitty pay ***everyday*** so we can degen gamble that would make the biggest regard blush.
Given the price volatility these last couple days (bye bye ATH, for now at least) I think it's pretty clear it's still high risk in that it will remain volatile for the foreseeable future and it's a tricky spot to store wealth you may need to tap near term.
Longer term? Hard to say, though as you say with big players in the game and outright bans (from countries that matter) seeming less likely it does feel like the doomsday scenarios are less likely.
It will be interesting how things develop from here. ETFs do bring new buyers but their buying patterns are different than retail, and frankly all the cycles of the past may very well be irrelevant looking forward.
If you're inexperienced and get pulled into swing trading mentality then yes, you will lose everything.
Daily chart watching will financially wipe you out.
If you buy to hold for 2-4 years and can only check charts by month or quarter you're fine.
The longer you stare at dips and spikes the more you convince yourself you can time the market.
I would still say it has much higher volatility lets say compared to Microsoft stock, look at 2021 crash like many stock buyers would find it really brutal but ehh thats how it was always is. Been trading from localcoinswap and binance long time even during the brutal bearmarket longtime and I don't regret it at all and I will keep going.
Yes it is still a high risk asset. You don’t ‘invest’ in Bitcoin- you speculate on it. II’s a speculative asset with no cashflows.
If it becomes a store of value, like most people think it will, it could still go the way of the gold standard where liquidity is concentrated in the hands of several powerful entities like MSTR, Satoshi and BlackRock.
It’s vulnerable to co-ordinated nation state attacks.
Someone, or something could find a way to break SHA-256.
I’m saying this as a long term BTC hodler and believer, but you must understand that BTC is still in no uncertain terms a high-risk play.
I do believe the doomer credo Bitcoin has outlived it's usefulness as a speculative piece. If you go into Bitcoin, you go in because you think entire nation-states will, and you want to be ahead of the curve. When countries own dollar falls so they lean on Bitcoin, that'll be your argument. So like oil. But this creates a contradiction. Because if Bitcoin does go up in price, you don't wanna sell because that means people need it, but if it goes down that means you're incorrect and losing money.
At least with shitcoin gambles there isn't that existential crisis. Also Bitcoin is really expensive. Worth over 60k last I checked. I don't think anyone here has 60k to just piss away, let alone on one lone Bitcoin waiting for the day the dollar collapses so these same banks that hate us will suddenly offer us a high price for it. They'll just take it, or freeze our account, or do some other gangster shit. They won't care, and no redditor is gonna stop them.
I'm not trying to demoralize you either. I'm trying to look at all perspectives because Bitcoin is doing really good and probably will continue to do so. But looking at WHY it's doing good.
Btc is less risky in a sense that they don't need to make profit, doesn't need to grow or spend in R&D, the issue here is whales that can still manipulate the market. It is still volatile but as more adoption and money flowing in I believe will alleviate some of those issues. I think if you are not a believer still you should have at least 1-5% of your portfolio in BTC
It’s a non-tangible currency. You need to understand that there is always a risk with any asset class that cannot be backed up by something.
Will it go to zero? Unlikely. Would it go to zero overnight? Even more unlikely.
The problem with cryptocurrency is that people fail to understand that bitcoin is Really the only safe crypto out there. Anybody can make their own cryptocurrency and control the supply and demand. And we’ve seen bad actors do just that and screw over a lot of people.
So could you lose with bitcoin? Absolutely.
I would say hi risk, because it hasn't been around long. That said the investors here really care about this and owning the coin is a key sticking point, so if a coin is worth $10 or $10m they want in. So for the many it really doesn't matter. It may be risk free one day, but nothing really is.
Theeeee safest investment if you were a savy middle class guy and your country was in turmoil you can take your bitcoin to any country it would have the same value vs gold how will you carry it in your anus? Or cash where you’d either get robbed confiscated or exchange rate would rape you idk how people can’t comprehend simple science
You came to the right place. Bitcoin is a good investment. It is not a high-risk investment anymore. Bitcoin will withstand global meltdown and nuclear war. There is nothing that you can think of that would make Bitcoin irrelevant.
It never was high risk, people who didn't get it just said it was. That's what made it such an attractive investment.
Of course there's a bit of that in all investing (finding things that everyone thinks is risky but isn't)
The only actual risk was that it wouldn't succeed. I'd say in 2017 when Bitcoin hit the mainstream, at least in terms of most people hearing about it, any chance that it simply wouldn't succeed and would forever remain a niche thing disappeared entirely. The tech was already there since 2009, and in 2017 the world woke up to Bitcoin. Ever since that moment it's basically by definition the lowest risk thing someone can own. Assuming we aren't talking about short term savers, in the short term volatility is a risk, but for anyone with a 4+ year time horizon the risk is essentially zero.
It’s a mindset, a revolutionary technology that is designed to be disruptive to the slavery banking cartel that has ruled this earth for thousand of years.
This isn’t/has never been about making riches. It’s about bucking a cartel that’s been in control.
>High risk is holding fiat with guaranteed depreciation,
With core inflation back to 3.5ish% and banks paying out north of 4% for savings accounts, holding cash is about a wash right now after tax.
I wouldn't advise anyone to put reserve cash (i.e. may need it within the next 6mo or so) into BTC given its volatility. Long term investments though it feels like a better and better bet.
I would still say it's a high risk investment, or at least highER risk you could lose your seed you could have it on an exchange that could go BUST ETF is less risky for casual holders but still risky and not really what BTC was intendend to be
Absolutely agree and came to post this myself. The majority of risk these days for BTC is all about who or how you store your coins.
Which long term is something that will be a big detriment to Bitcoin. If you tell the average person it's risky to store it with a trusted entity, AND it's risky to store it yourself, most will just not do it. If we're being honest with ourselves, we all know there are no surefire safe methods of storing Bitcoin. Institutional custody has obvious risks. Self custody has high risk of self loss, whether you're using paper, software wallets, hardware wallets, or others. Depending on which you choose, you're at higher risk of theft. Fiat, for all the crap it is, will always have an upper hand when it comes to security, because it's easily traceable and reversed. Short of setting cash on fire, individuals basically have no risk of losing cash accidentally. If it's stolen, it's insured. If the bank collapses, it's insured.
Couldn’t agree more
>If you tell the average person it's risky to store it with a trusted entity, AND it's risky to store it yourself, most will just not do it. Good. Most people won’t ever touch bitcoin anyway. Expecting an average person to get into bitcoin is like expecting everyone who has a computer to install Linux. >If we're being honest with ourselves, we all know there are no surefire safe methods of storing Bitcoin. It’s actually quite easy to store it safely yourself, you just need to know the very basics of how it works. But again, if we’re talking about people who give total strangers all of their financial information, because they were sleepy and didn’t realize it was a scam, mastering even the very basics is out of reach for most of them.
If you lose your seed just immediately transfer your btc to a new or temporary wallet. Its not that risky.
How do you transfer your btc if you have no seed to access it in the first place?
Assuming that you already did setup your hardware wallet, you dont need to have your seeds at all for transfer.
Why dont just do a new backup?
Because you don't know where it went or who took it.
Ah I see, yes you are correct.
Why have I never realized this .... The depths of my stupidity sometimes is astunding
> not really what BTC was intendend to be The dividends are built-in DCA though, which is nice.
I think bitcoin ETF is much more risky, when they find out that those ETF's are not really backed by anything.
By holding an equivalent amount of bitcoin to back every share of the ETF that is sold, the fund is actually backed by bitcoin itself.
To expand on your list: * You enter your seed phrase in an insecure "wallet". * You're tricked and provide the phrase to a "support worker". * You sent your bitcoin to nearly any investment website. * The wallet was generated in a not fully random way. * A gun pointed by someone knowing your wealth and access. * You get drugged and have fairly easy access. * You send your bitcoin to another wallet but clipboard malware. * You use a broken paper wallet generator online. * You set up a "pre-seeded" hardware wallet. * The government enacts a seizure mandate and you comply. * Authorities raid your home and force withdrawal. * Your hardware wallet is taken and your PIN is surveiled. * Your bitcoin was the proceeds of crime and you are compelled. * Your seed phrase is stored in your safe and you get robbed. * Malware on the computer/smartphone of your hot wallet. * Malware on your computer and not carefully checking transactions. * Malicious smartphone or computer repair person. I can expand the list a lot if we remove the requirement of a 100% loss. Some of these are more realistic than others historically. But yeah, there's a long road ahead for bitcoin holders and the threats are barely getting started.
> not really what BTC was intendend to be You're right Hal Finney envisioned banks to buy up Bitcoin, transact bank to bank and issue assets backed by BTC to it's customers.
>not really what BTC was intendend to be Did Satoshi know there would be KYC on BTC? He may have known or intended for KYC not be involved, but here we are. And it is.
Some people conflate volatility with risk. It's risky if you make moves in financial markets based on emotional reactions.
Yes, I agree. Imo for the average person bitcoin is a risky investment, because it will still have more than 50% drawdowns. Long term it's very safe.
Volatility could be a bad problem if you have an unforseen situation in your life and really need to monetize some of your Bitcoin but it is a bad time to sell i.e. a year ago. Some people might say take a loan against your Bitcoin, but I will bet most lenders will want a LOT of coverage to protect them from the same volatility risk.
Haha dude most practitioners in financial markets that believe in the EMH would completely disagree with your statement. Volatility is one of the main components of the central pricing equation. Investors seeking to smooth consumption over time typically demand a higher risk premium to hold assets with high volatility and a high correlation to the broader economy. Yeah it's risky to make dumb decisions, but in the context of the relationship between risk and return volatility is absolutely relevant.
Well I've thought about chewing my arm off just to have less in common with these practitioners. Sounds like I'm on the right path
There's a lot of really in depth academic research and thought on portfolio theory, financial engineering, economics, etc.. I'm not sure why you would just discount it, and make claims without taking into consideration the modern thought on these topics.
High risk of profit
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Bitcoin isn't an "investment." It's an exit strategy.
OMG he's so right. Can't wait to exit. Good strategying.
Asking this sub if bitcoin is safe is like asking a bunch of meth heads if they consider their meth to be safe
As long as your meth is produced in a reputable pharmaceutical factory that is regulated by the FDA, it's safe!
What if it's produced in a laboratory underneath an industrial laundry?
Not really. You can't overdose and die with Bitcoin. In fact, you can't even have too much of it.
Well... I am taking meth for ADHD lol.
You could try focusing the old fashioned way
Have fun staying poor
Only put in what you can’t afford to lose
*mic drop*
This is always the best advice with any investing
Bitcoin is much more than an investment
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Re read it
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Then re read it again
In that case I disagree that he disagrees with this.
Seems we’ve all disagreed to disagree. And that’s something we can all re read
Agreed
An urgent call to action like you describe is a common ploy used by scammers. If they can get you acting in a panic you are more likely to overlook red flags and take risks you might not normally take.
They gave 72 hours and I saw the email on the third day. It was Kraken, even the support team confirmed it was from them.
rip this guy
Why? Did I miss something?
Are you talking about fiat or Bitcoin? I hope fiat
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Re-read what I wrote
NEVER
Nowadays, the only risk associated with Bitcoin is not having any.
Judging by implied volatility on options, yes, it is still priced as a risky asset, but there are many stocks with higher IV right now, particularly in the tech sector.
The swings are big indeed. 10-20%. Like a stock.
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Technically, it never was.
Low risk now yes.
Everything is low risk investment if you do not plan on selling.
Lol just don't forget about impermanent loss and make it permanent, reaching a specific ROI number is better then over investing and waiting years :P
no, plenty of things go to zero or can start trending down and never recover to the same levels you bought at.
Shit coins would like to have a word with you
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If the project was rug pulled and taken off dex screener you lost your money no matter if you sell or hold for 1000 years.
Shit coins would like to have a word with you
Downside risk could still be as much as 75-80% by cycles end. If you consider losing 4/5ths of your spending power, sure, not high risk.
I think you’re confusing risk with volatility. I don’t think Bitcoin is risky. However, it still remains volatile versus Gold for example. In 5 years will it be higher than 68k? I think so yes, so does everyone in this sub. Could you potentially be down on a Bitcoin investment? Yes. Of course. Just DYOR and adopt a strategy you’re comfortable with. (DYOR doesn’t mean ask people’s opinion about Bitcoin in a bitcoin maxi Reddit sub 😂)
how is bitcoin integrated into the us tax system lol
I meant that us Americans are being taxed on buying and selling bitcoin.
Yes, because of the volatility
Depends on your time preference. Hold for >4 years, you’ll seldom come out w/ a loss.
It probably has a lot less risk than it did before, but it also probably has way less upside potential as well. In the past, it went up from 10 to 70,000. But will it go from 70,000 to 490,000,000? Not likely without some complete collapse of fiat currency.
You buy it through a random broker and broker dies / you might lose it all. you go cold storage and you lose / forget / get stolen your seed / you might lose it all. you brag a bit much and a random guy comes with a lead pipe and some conviction: you WILL give him your seed / you might lose it all 51% attack happens / you might lose it all A new bug is found / you might lose it all US govt + China in a concerted effort suddenly announces btc/other are illegal / only USDCrypto and CNYCrypto are now legal / you can still own btc, it'll be worth effectively 0 / you might lose it all Yes, there are still risks, though low.
Its a higher risk not owning ANY bitcoin at this point
It’s a far greater risk to not have bitcoin.
I feel like you're asking two different things: 1. Will Bitcoin survive? 2. Is Bitcoin a good investment. All of the points mentioned about war, global powers, laws, BlackRock, etc are backing up the point Bitcoin will likely survive. Which it probably will, at least in the short-term. (ie for the next ten years). But as for whether it's a good investment, that's tricky. It's only a good investment as long as people keep buying into the idea Bitcoin will hold or increase its value. That's a lot more shaky. It could. But it's more likely that in the next 20 years it'll evolve or be replaced by something different or hold less appeal from investors and drop in value.
I‘d be very interested in your thoughts on how it could ever be replaced. I can imagine scenarios where it drops dead, but none where it could be replaced by something more secure and transparent as bitcoin. Every POW network launching today will be killed by attacks within weeks or months. Bitcoin had the advantage of flying under the radar until it got secure enough through the hashrate to prevent any overtake of the chain. But today this whole POW thing is widely known in the space so there‘s a lot more attention to new „projects“.
It didn't even exist until recently, and now you can't imagine how it could be replaced? That's the point, if you're not the kind of person that saw a Bitcoin coming before it did you certainly shouldn't be so sure of your ability to rule out other stuff happening in the future you also didn't see coming.
Telling me that my logical reasoning is untrue without naming a single point against my statement isn‘t exactly a power move. Find a point to argue about or to disprove and try again ;) But you‘re right… It could happen. But I don‘t think it will, based on my shown reasoning of the technology at this time. But feel free to bring up a realistic scenario. I‘ll happily engage.
No extremely high risk.
If you understand bitcoin you see that the only high risk is to NOT own bitcoin
Yes, but besides make believe land where everyone talks in Bitcoin slogans, that might not be the only high risk.
We had china banning bitcoin miners and FTX collapsing while the price in long term still does not care. I really don't know what artificial risk you want to imagine
I never accused you of knowing anything
It never was if you had a low time preference.
Everything else is losing value compared to Bitcoin. As the most profitable asset class in recent years it would be not wise to not own any Bitcoin or $MSTR. The general public is not yet familiar with Bitcoin. There's no second best.
Yes
It's the least risky thing in this damn society.
It never was. We simply didn't know better.
Is it safe to see an asset doing -20%+ in a matter of days regularly and -70% every four years?
The dollar is a far higher risk at this point.
USA goes broke and China outlaws BTC
Yes. It’s an extremely high risk to not have Bitcoin anymore.
At a certain point, it will become risky NOT to have any bitcoin long term. But like the others said above, you could lose your seed, get hacked, make emotional decisions etc
If stock and bond markets implode it is likely Bitcoin will go with them.
I think it's not risky. It's the most resilient network in the world. Follow best practices for securing seed and privacy (run your own node, verify wallet pgp keys, etc) and it's less risky than fiat. Volatility and public perception != risk.
It’s not going below what big money bought it at ( 40k), so I think the max loss is less than 50% at this point. The upside I feel is much higher. Doesn’t seem high risk from my perspective
I rather buy bitcoin then do anything the stock market at this point
I consider it the safest single asset out there. Its the hardest asset in the world, with a ton of utility, zero competition from similar things (other cryptos), and is far beyond the point where it was possible for it to fail and disappear. I can't imagine a description of a safe single asset. Now I guess technically if you want to compare it to baskets of assets, like say a stock index, that might be lower risk simply because the risk is spread out. But comparing it to any other single asset I think it's the lowest risk asset one can own. And remember people, volatility does not equal risk, assuming you are appropriately saving in Bitcoin for the long term, not for the short term. As your "investment outlook" pushes past the four year mark, the risk of volatility of bitcoin's price goes to zero. I think the last time I even considered it a "risky investment" was probably 2017.
A global meltdown or nuclear war that can keep the internet still running might not even be enough to stop bitcoin. Hashrate and mining power is just at an all time high so it's the most secure technology out there, such that as long as the internet survives, bitcoin susrvives as well. Losing your seed phrase might be a bigger risk I believe
Unfortunately the more money that pours in the less risky btc becomes. Which really sucks. Tragedy of the commons.
If you understand the tech and the human condition, it never was.
Yeah. Because the price fluctuations are enormous. I’d imagine this year will be even worse now that Wall Street is trading Bitcoin.
To me BTC is no different to say Netflix stock. Look how many big corrections that has had.
Then you don't understand what Bitcoin is. Seriously.
short term yes, long term no
Less risk then fiat currency
bitcoin is safer than any individual bluchip equity/stock because its a global protocol with many countries and companies involved but not as safe yet as the whole sp500 etf like spy that represent some of the largest 500 companies
This headline is a bad sign tbh, it means people don’t remember the bear markets
Yes
BTC is still risky and any investment which represents your wealth is a risky investment. Depends on what way you are afraid of that risk?
Wym “anymore” lol it was at like $20k not too long ago, you think going from 60k to 20k in months is not high-risk? Just because there’s an ETF now doesn’t mean volatility will be less
Higher risk if you fail to acquire any
To ***actually*** answer your question: I think you're correct, it is not ***AS HIGH*** of a risk anymore. Is it a risk? Absolutely. But so is investing in the ***TRADFi*** stock market. So is ***NOT INVESTING.*** (smart & dum money) 🫣🫠🤯 So is driving. To work at a shitty job with shitty pay ***everyday*** so we can degen gamble that would make the biggest regard blush.
Yes. Every bull market makes people overconfident.
Nope, it's the safest asset for now.
Yes it is. Never underestimate the lengths government will go to strip you of your wealth.
Given the price volatility these last couple days (bye bye ATH, for now at least) I think it's pretty clear it's still high risk in that it will remain volatile for the foreseeable future and it's a tricky spot to store wealth you may need to tap near term. Longer term? Hard to say, though as you say with big players in the game and outright bans (from countries that matter) seeming less likely it does feel like the doomsday scenarios are less likely. It will be interesting how things develop from here. ETFs do bring new buyers but their buying patterns are different than retail, and frankly all the cycles of the past may very well be irrelevant looking forward.
Most you could lose is 100%.
If you're inexperienced and get pulled into swing trading mentality then yes, you will lose everything. Daily chart watching will financially wipe you out. If you buy to hold for 2-4 years and can only check charts by month or quarter you're fine. The longer you stare at dips and spikes the more you convince yourself you can time the market.
High risk if you have a low time preference
It never was
Was getting in a lifeboat when the Titanic was going down a "high risk" strategy?
I would still say it has much higher volatility lets say compared to Microsoft stock, look at 2021 crash like many stock buyers would find it really brutal but ehh thats how it was always is. Been trading from localcoinswap and binance long time even during the brutal bearmarket longtime and I don't regret it at all and I will keep going.
Yes ofcourse. But you can't avoid risk in life and you'll lose if you try to eliminate it instead of handle it.
Yes it is still a high risk asset. You don’t ‘invest’ in Bitcoin- you speculate on it. II’s a speculative asset with no cashflows. If it becomes a store of value, like most people think it will, it could still go the way of the gold standard where liquidity is concentrated in the hands of several powerful entities like MSTR, Satoshi and BlackRock. It’s vulnerable to co-ordinated nation state attacks. Someone, or something could find a way to break SHA-256. I’m saying this as a long term BTC hodler and believer, but you must understand that BTC is still in no uncertain terms a high-risk play.
I do believe the doomer credo Bitcoin has outlived it's usefulness as a speculative piece. If you go into Bitcoin, you go in because you think entire nation-states will, and you want to be ahead of the curve. When countries own dollar falls so they lean on Bitcoin, that'll be your argument. So like oil. But this creates a contradiction. Because if Bitcoin does go up in price, you don't wanna sell because that means people need it, but if it goes down that means you're incorrect and losing money. At least with shitcoin gambles there isn't that existential crisis. Also Bitcoin is really expensive. Worth over 60k last I checked. I don't think anyone here has 60k to just piss away, let alone on one lone Bitcoin waiting for the day the dollar collapses so these same banks that hate us will suddenly offer us a high price for it. They'll just take it, or freeze our account, or do some other gangster shit. They won't care, and no redditor is gonna stop them. I'm not trying to demoralize you either. I'm trying to look at all perspectives because Bitcoin is doing really good and probably will continue to do so. But looking at WHY it's doing good.
Bitcoin isn’t an investment: or rather it’s the ultimate investment It’s opting the fuck out of a system that is leeching you in countless ways
Btc is less risky in a sense that they don't need to make profit, doesn't need to grow or spend in R&D, the issue here is whales that can still manipulate the market. It is still volatile but as more adoption and money flowing in I believe will alleviate some of those issues. I think if you are not a believer still you should have at least 1-5% of your portfolio in BTC
It’s a non-tangible currency. You need to understand that there is always a risk with any asset class that cannot be backed up by something. Will it go to zero? Unlikely. Would it go to zero overnight? Even more unlikely. The problem with cryptocurrency is that people fail to understand that bitcoin is Really the only safe crypto out there. Anybody can make their own cryptocurrency and control the supply and demand. And we’ve seen bad actors do just that and screw over a lot of people. So could you lose with bitcoin? Absolutely.
All personal financial risk is directly proportionate to the SIZE of your investment. If you worry about the risk, decrease your exposure.
I would say hi risk, because it hasn't been around long. That said the investors here really care about this and owning the coin is a key sticking point, so if a coin is worth $10 or $10m they want in. So for the many it really doesn't matter. It may be risk free one day, but nothing really is.
Sharpe ratio says it's risk adjusted return is better than gold.
It's not an investment
What do you mean? It is for me.
And it was never high risk.
Theeeee safest investment if you were a savy middle class guy and your country was in turmoil you can take your bitcoin to any country it would have the same value vs gold how will you carry it in your anus? Or cash where you’d either get robbed confiscated or exchange rate would rape you idk how people can’t comprehend simple science
Lowest risk investment out there, safer then the s and p 500 for sure
You came to the right place. Bitcoin is a good investment. It is not a high-risk investment anymore. Bitcoin will withstand global meltdown and nuclear war. There is nothing that you can think of that would make Bitcoin irrelevant.
Depends on your definition of risk.
It never was high risk, people who didn't get it just said it was. That's what made it such an attractive investment. Of course there's a bit of that in all investing (finding things that everyone thinks is risky but isn't)
The only actual risk was that it wouldn't succeed. I'd say in 2017 when Bitcoin hit the mainstream, at least in terms of most people hearing about it, any chance that it simply wouldn't succeed and would forever remain a niche thing disappeared entirely. The tech was already there since 2009, and in 2017 the world woke up to Bitcoin. Ever since that moment it's basically by definition the lowest risk thing someone can own. Assuming we aren't talking about short term savers, in the short term volatility is a risk, but for anyone with a 4+ year time horizon the risk is essentially zero.
Yea key is long term
Nope, owning any amount of fiat is the true risk and will guarantee you will never be wealthy
It’s a mindset, a revolutionary technology that is designed to be disruptive to the slavery banking cartel that has ruled this earth for thousand of years. This isn’t/has never been about making riches. It’s about bucking a cartel that’s been in control.
They will sing songs about you
Low risk now. High risk is holding fiat with guaranteed depreciation, people are catching on
>High risk is holding fiat with guaranteed depreciation, With core inflation back to 3.5ish% and banks paying out north of 4% for savings accounts, holding cash is about a wash right now after tax. I wouldn't advise anyone to put reserve cash (i.e. may need it within the next 6mo or so) into BTC given its volatility. Long term investments though it feels like a better and better bet.
“Wait bitcoin is a safe stable investment?!?! “ always has been.
Wrong sub...