The Risks and Rewards of Cryptocurrencies

[eaLiTy]

BBC recently did a interview around the volatility of cryptocurrencies. I think we are still so early in this industry but I would love to know your thoughts about where we are going and how you think the landscape will change.

This is a new platform and volatility is the face of the market and it is mainly because of the low liquidity we have, not sure how anyone could overcome that situation in this market, the change in landscape is dependent on how major countries are planning to regulate the market and the major factor would be how they will view anon currencies like Monero and other similar coins. We can only speculate now but in a couple of years we will have a clarity about the entire market.

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[imstillthebest]

BBC recently did a interview around the volatility of cryptocurrencies. I think we are still so early in this industry but I would love to know your thoughts about where we are going and how you think the landscape will change.

This is a new platform and volatility is the face of the market and it is mainly because of the low liquidity we have, not sure how anyone could overcome that situation in this market, the change in landscape is dependent on how major countries are planning to regulate the market and the major factor would be how they will view anon currencies like Monero and other similar coins. We can only speculate now but in a couple of years we will have a clarity about the entire market.

what clarity are you talking about ? there is no clarity because you once said that we are here to speculate . your right because cryptos is about speculation due to thier volatile nature which we cant exactly know on where the price is heading at . the title is  true because there is always a reward after the risk and the more the risk you face , the more the reward you will also achieve  .

[Betwrong]

being volatile is not the problem and it can not be considered a "risk" in my opinion. take a look at bitcoin ,it has been volatile for all its life but it still is a very good currency and/or investment. the reason is because volatility is the product of having a small market on exchanges.

the problem is when volatility is not because of smallness of the market but it is because of manipulation. for example no matter how much money goes into altcoins they will remain highly risky because their volatility is product of pure manipulation which people call pump and dump.

The smaller the market for a coin the higher the probability of manipulation. That's why investing in Bitcoin is less risky than in any of them. But I agree that even for BTC the market is still too small for it to be stable. How big the market should be is a big question, but I think it should be at least 10 times bigger than it is now. And that's perfectly possible, by the way, because BTC is used by less than 1% of the world population still.

[akram143]

It's very simple to to understand the volatility keeps the prices of the cryptocurrencies to be risk and the same volatility makes the cryptocurrency to be much more profitable investment.

[Finestream]

It's very simple to to understand the volatility keeps the prices of the cryptocurrencies to be risk and the same volatility makes the cryptocurrency to be much more profitable investment.

Right.People have always known cryptocurrencies as being volatile that makes it a very risky investment.But behind that volatility is what makes all investors and traders keeps on being thrilled knowing the price would suddenly goes up and gives them huge profit and sometimes goes down which gives them opportunity to buy even more for additional investment.

[adzino]

Risking our capital is not good at all time. Yet, we have seen many evidences of pay-outs and the money they received from investing, crypto is also a risky investment. There is no such thing as real rewards here. In fact, even rewards at the bounty campaigns are ruined by scam projects. If we just get rewards, probably the little one that suits to our bill fees.

Any sort of investment means you are taking a risk. Invest on a business and you have a risk of losing everything due to failed business. The same thing goes for crypto currencies. Invest on wrong time and sell at the wrong moment, you will be suffering huge loss. Lose track of your crypto currency investment, you will end up with nothing. Bigger the risk, higher the profit is!

[iMark]

Do you want people to put on headsets and listen to this podcast for 28:33 minutes? why would people do that? I think you should listen to the podcast and then summarize what they said and post in this thread the summary you made

I would love to know your thoughts about where we are going and how you think the landscape will change.

if enter a lot of money in the crypto market, I believe that the volatility will not be very high as it is today, at least we will not see high increases and followed by very large falls

I also hate listening to a very long Podcast, sometimes some opinions are out of topic, I prefer reading an article, but if it is a very people in the crypto like Satoshi I'll go for it, better just summarize it, going back to your question, until we don't have a regulation we will still going to have an ups and down, but I prefer unregulated because everyone will do his own assignment.

So you think regulation can make fluctuations disappear? in my opinion it's not a factor that will make prices stable. although regulations and legalization are made for crypto. the market will remain fluctuating, that's what makes cryptocurrency special afterall

[bitgolden]

In Cryptocurrency, we will indeed get a very high risk because of the volatility of the Crypto value that has never been stable.  If we invest in Cryptocurrency, we really need to be ready with all that.  however, behind this high risk, Cryptocurrency also provides us with tremendous opportunities to make a profit.  because of Cryptocurrency price fluctuations that can rise quickly and very high.

when you want to do something risk will always be there, you just need to be able to face the risks that exist to be a successful person, without any risk you will not have experience and will not be able to learn from mistakes you have experienced.

That's a challenge though. Will risk is a part of our life in crypto and ain't no way to escape from that otherwise, to face it.
If we really care about risk, then risk also turns it back to you. Better to look it in a positive way rather than of thinking it negative cause that could be a hindrance to our success.

When we leave our house every day, and we embark on a journey to our destination, there is risk of accident, risk of getting molested, risk of being stolen for much other life threatening risk out there, but yet we still go about our activities believing that we are in God’s hand and hoping that nothing will happen.

This is the same faith we need to have on the investment we are risking, although we have to use our head too when taking some certain risk, there are some risk that our instinct will clearly tell us is not worth taken, but we get stubborn to our instinct and get burnt by it. If we can take the right risk, then such risk will do more good to us than the damage it has with it.

[MinMan]

A lot of people are afraid that Bitcoin (Cryptocurrencies) are volatile and they are afraid that they don’t want to lose their money. I am also afraid of that sometimes, but without that volatility being there, it wouldn’t be as rewarding as it is. It’s all about risk, if you’re able to take that risk you’re either going to win or you lose and when any of these things happens, all you can do is just to endure all it all and nothing else. If Bitcoin wasn’t volatile I don’t even think it will get this far, cause what attracted people to start investing in Bitcoin is because they all thought they will make money from it.

[Barbut]

I think the only thing we can risk with cryptocurrencies is money. You risk and you can lose if you make a wrong move, the right moves are highly rewarded with profit. Except for profit, we have many other rewards, more important than money itself is knowledge, with the knowledge you can earn money easily. We grow with crypto, we learn and we make friendships, we make contacts for a lifetime, maybe that`s more valuable than any money.

[xSkylarx]

Everything has risks. It is up to us if we are prepared to face it. There are many risk when you invested in cryptocurrencies because market is very volatile. If we know well what we get into we can minimize those risks. I invested in crypto because I'm more thinking that it will have a great value in the future mostly bitcoin.

[1Referee]

So you think regulation can make fluctuations disappear? in my opinion it's not a factor that will make prices stable. although regulations and legalization are made for crypto. the market will remain fluctuating, that's what makes cryptocurrency special afterall

Correct. It's pure bs when people talk about how regulations will make sure the market of Bitcoin will get stable.

If you want to see how much effect regulations have on a market, follow tech stocks; some of the biggest companies in the world lose/gain 20-30% of their value in a matter of a week or a month. Bitcoin isn't different, it's just the rate at which these fluctuations happen that gets people upset, but that for a market lacking liquidity is completely normal.

An example of recent EXTREME upwards volatility is MoneyGram. In one single day the stock price shot up from $1.45 to $3.88! It has a very small market cap, but this just mirrors what happens with altcoins here. The point is that there isn't really a difference between unregulated markets and regulated markets in terms of volatility. Liquidity is what you need.

[FlightyPouch]

I don't listen to my mother nag for 10 seconds and you will be making me listen into a 28 minutes podcast? 10 years are still early, we all know that, Risks? We all know that, Rewards? We had been grabbing all of the rewards we have but most of the time, we let it go since we thought that it could grow more but that is btc, it pumps, it dumps still, we earn.

[Lanatsa]

I don't listen to my mother nag for 10 seconds and you will be making me listen into a 28 minutes podcast? 10 years are still early, we all know that, Risks? We all know that, Rewards? We had been grabbing all of the rewards we have but most of the time, we let it go since we thought that it could grow more but that is btc, it pumps, it dumps still, we earn.

Tagging up a real life situation.Im with on the same foot as yours.Im not really keen on seeing podcast like this one yet we know
on whats the risk and rewards of crypto and just being simply making yourself got involved into this speculative market you can
able to spot out on what are the things you would face up.

[shield132]

This podcast starts with talking about what Libra promises to us but even this interview was early step from bbc because it's another task if will Libra be in action because it may have serious issues with government of united states.
On another hand my opinion on given subject is that risks exists for investors and rewards are for both, investors and crypto enthusiasts but that reward is risky for investors. For people who use bitcoin as a payment method, it's great option for protecting privacy and managing your own money. Crypto offers cheap transactions without banks, that matters the most. You can hold money outside of bank and if you have bad bank history, nothing can stop you from making online transaction via using cryptocurrencies which is really a reward.

[Betwrong]

A lot of people are afraid that Bitcoin (Cryptocurrencies) are volatile and they are afraid that they don’t want to lose their money. I am also afraid of that sometimes, but without that volatility being there, it wouldn’t be as rewarding as it is. It’s all about risk, if you’re able to take that risk you’re either going to win or you lose and when any of these things happens, all you can do is just to endure all it all and nothing else. If Bitcoin wasn’t volatile I don’t even think it will get this far, cause what attracted people to start investing in Bitcoin is because they all thought they will make money from it.

What you said relates more to a dice game than to Bitcoin. It's in a dice game you can bet your money with 10% win chance, and either lose it all or win tenfold, and the probability of the former is 90% while the probability of the latter outcome is only 10%. It's not like that with Bitcoin. With Bitcoin you are risking to lose 80% of your investments, but this is very unlikely. What is more likely is winning twofold in the nearest future(3-6 months) and maybe twenty-fold, or even more, in the long run.

Investing in Bitcoin is similar to investing in Google stocks in 2007: the price of the stocks was already 5 times up since 2004, and some people thought it could go only down, and they started selling and it indeed went down, but today the price of GOOGL is 5 times higher than it was in 2007.

[Genamant]

BBC recently did a interview around the volatility of cryptocurrencies. I think we are still so early in this industry but I would love to know your thoughts about where we are going and how you think the landscape will change.

People in the podcast include:

Marc Warne, Founder, Bittylicious
Jemima Kelly, reporter, FT Alphaville
Dave Jevans, CEO, CipherTrace


https://www.bbc.co.uk/sounds/play/m000676m

the risk and reward level in crypto really depends on the traders control of emotions thats what i think aside from the given knowledge of course
but too much excitement might push you to go FOMO or invest more that what you afford to loose and on the other end having patience might give you enormous reward

[MinMan]

BBC recently did a interview around the volatility of cryptocurrencies. I think we are still so early in this industry but I would love to know your thoughts about where we are going and how you think the landscape will change.

People in the podcast include:

Marc Warne, Founder, Bittylicious
Jemima Kelly, reporter, FT Alphaville
Dave Jevans, CEO, CipherTrace


https://www.bbc.co.uk/sounds/play/m000676m

Listening to the podcast is not going to do me any good, because there’s nothing they will say in the podcast that is going to sound new to me, it’s also going to be the same thing a lot of people have been saying over and over again. Bitcoin is very volatile, we all know that, and we know that trading Bitcoin is a huge risk and that you can lose everything that you invested, and bitcoin can also be a life changer, there are lots of people that became millionaires by using the opportunity they had with Bitcoin, though this time around it is different because it now expensive and more risky. So stories are not going to be the same.

[FlightyPouch]

Everything has risks. It is up to us if we are prepared to face it. There are many risk when you invested in cryptocurrencies because market is very volatile. If we know well what we get into we can minimize those risks. I invested in crypto because I'm more thinking that it will have a great value in the future mostly bitcoin.

the risk is always there in each of our trips, and that risk can never be avoided if we have done something very risky. actually an event has a risk. because so that we can be confident and dare to move forward, and say that the risk is not dangerous for me.

Actually the amount of risk in cryptocurrency depends on each individual user, if they have no knowledge in crypto and do not have skills in crypto trading then the risk is certainly much greater, the reward you will earn will be even greater if your skills are higher

Even if you have the knowledge about it, there is still the risk. Volatility is a risk too and that is the reason some people don't want anything to do with it. But as we all say, the higher the risk, the bigger the rewards. People risk their money with the hope of earning huge profit out of it, but as you've said, without knowledge and usually skill, they can lose their money.

[Betwrong]

~One way or another, in order to get real results from your investments, you first need to study each project that interests you.  Only if you are confident in its prospects, only then you need to buy These coins.  Otherwise you will not have any result.

Unfortunately, our confidence rarely helps in real life. Even the best experts in the world make mistakes sometimes, not to mention ordinary people like us. There are many projects that look very promising in their whitepapers and road maps, but they fail to deliver in the end. Instead of studying a project, I would rather study the team behind it and the big names that support it.