Serious question about Bitcoin. Is it a reliable and stable investment?

[Max2140]

Hi guys. I have a friend who's parents are looking for alternatives and want to invest money into something other than their IRA account. They have a fixed IRA with about $100K, but they are unsatisfied with the miserable amount of interest they're getting. I mentioned to them that bitcoin is a possible alternative and one they can look into. Do you agree? Do you guys consider bitcoin a reliable and stable investment for long term holding(5-10yrs)? Is it safe to assume the only direction(barring a few dips here and there) bitcoin will eventually go from here is up? Do you foresee it going below $10K, or even $9K ever again? Is it even possible to see the lows we saw a few months ago(ie $3500) ever again?

Please give me your thoughts. IRA or Bitcoin for the long term?

It all depends on the current portfolio allocation to alternatives/risky assets, risk tolerance, net worth, and investment goals. Generally, a small allocation to Bitcoin historically increases risk-adjusted returns and the Sharpe ratio of the investment portfolio. My recommendation is typically Buy & Hold strategy for the medium/long term. You can try our free Bitcoin Robo Advisor service to calculate the optimal portfolio allocation to Bitcoin, out of curiosity.

[TIDOVEE]

Yes, bitcoin has been structured to be reliable but not stable enough at its own pace as an investment, it is quite volatile, it may not be best in short term because the space of time between a bull and another bull is worth big time patience.you need a real understanding of bitcoin specifics"the market trend" in order to be a successful investor in it. Most of those who can observe the risky part of bitcoin the most are the traders who have many investors on their neck.

[Asuspawer09]

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<...>If you observe the market even in short term you could probably earn a big profit already in just a small time.
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Always good to stay keeping in touch with bitcoin investment. I'm actually stuck right now between hodling it or trade it already to an stablecoin like USDT.
Short term trading of bitcoin can't guarantee high profit, unless bitcion suddenly spiked and you're so lucky that you are checking bitcoin's current price and decided to sell it.
But that's unlikely to happen on short term trades so don't give some kinda false hope though it's possible to happen.

Maybe you can't always guarantee a high profit in a short term investment but it's still possible when it comes to bitcoin at I've done it a lot of times in the past investing my money when the market price of bitcoin is a dump. Could not be possible in other cryptocurrencies in the market since bitcoin is a bit different and special compared to the other.

You always have a chance to get profit when you have experienced and know the right time to buy/invest in bitcoin also the right time to sell your investment. Your not going to lose your money if your not going to sell your investmentt and the opportunity to sell could always come.

[goldade]

5-10 years is a very long time and there is the certainty that if one invest in bitcoin now, one is sure of huge profits.
I'm sure those that invested in bitcoin five to ten years ago can calculate how much profits they have made.
Although, I do agree with the fact that the market is very volatile and unpredictable, there have been moments of very high price and moment of very low price, it is still a very good means of investing.
The price of bitcoin is at almost $10k now and I'm pretty certain those that bought five to ten years ago didn't buy it at that price. They bought at a much cheaper price.

[wildflower18]

I'm more sure of bitcoin going up then local currency. You need to believe in bitcoin in order to invest for the long term. IF you do then I think you should agree. I find it hard to believe when the bitcoins are all mined that it will be below $10k. It's still being adopted it might go to a million $$. It depends on how many more people adopt it and I believe there are many.

Once a person becomes interested more about bitcoin he should learn first how it works so he can really understand. It is still being adopted since some people doesn't know this yet. It is reliable investment but we cannot say the value is stagnant since price is volatile. In the future, I believe there are more people who will adopt cryptocurrency.

[BlackFor3st]

Frankly speaking 5-10 years from now, we can see the ups and downs of the market the same with bitcoin price so we cannot say taht it will not go below $10k. It can even go lower than that when the bear season will hit hard as it is how the market works.

If you are planning to invest in bitcoin, you should make sure first that they know how the market works so they will not be worried when bear season will hit as they can surely see a red flood in their portfolio. Investment is about right time to buy and right time to sell meaning timing is very important here. Buy more in bear season and sell it when bull season will likely to appear.

[pixie85]

I'm more sure of bitcoin going up then local currency.

You should also be more sure of Bitcoin going down tahn your local currency, that's unlless you live in Venezuela, Iran, or a few other places

You need to believe in bitcoin in order to invest for the long term. IF you do then I think you should agree. I find it hard to believe when the bitcoins are all mined that it will be below $10k. It's still being adopted it might go to a million $$. It depends on how many more people adopt it and I believe there are many.

You're assuming they will all be mined out. If the price crash to 3 digits there will be no incentive for miners to keep going.

I'm a believer myself but we have to take all options into account.

[Jstandhope]

Over the years bitcoin has been proven to be a reliable investment. Imagine those who took the risk to invest in Bitcoin as at 2008 and years back and still hold their investment till now. You will release how valuable and reliable Bitcoin is. How profitable their investment has become also considering the growth rate of Bitcoin as the leading crypto currency.

[alexa pon]

Over the years bitcoin has been proven to be a reliable investment. Imagine those who took the risk to invest in Bitcoin as at 2008 and years back and still hold their investment till now. You will release how valuable and reliable Bitcoin is. How profitable their investment has become also considering the growth rate of Bitcoin as the leading crypto currency.

Now it is easy for us to judge those who invested at the very beginning, because now we see what came of it, but we cannot know what will happen next, the forecasts are different and we do not know what to believe.

[taufik123]

Over the years bitcoin has been proven to be a reliable investment. Imagine those who took the risk to invest in Bitcoin as at 2008 and years back and still hold their investment till now. You will release how valuable and reliable Bitcoin is. How profitable their investment has become also considering the growth rate of Bitcoin as the leading crypto currency.

Surely it will be very rare for people to hold bitcoin from 2008 to the present. Those who held bitcoin in that year were only people who believed in bitcoin technology and believed bitcoin could become a valuable digital asset. Of course they will have a target at what price they will sell it.

The fluctuation of bitcoin price will trick the psychology of the holder so some people will sell it as soon as they make a profit.
Bitcoin investment does look profitable, because the price continues to rise, but the market will also not continue to rise and will experience a deeper level of decline.
The right time to sell and buy bitcoin will be very important for the continuity of the investment.

[Darkelf11]

Bitcoin is volatile and too risky. Bitcoin is not a stable investment but it is reliable if you have enough knowledge in investing. Holding for a long term period is good but still risky. Better to learn first about bitcoin investing before jumping into it.

Bitcoin already proved itself over the years until now. It is a reliable cryptocurrency and the largest blockchain-based digital asset but its price is unstable. Whether you hold for short or long term it is still a risky investment because we aren't sure of its pace.

For short term it is not suitable for investment, if anyone have patience and can hold it for long term then it is reliable but it should be bought in dip not in up price.

There are some investors that chooses the short term investment and they earn their money back. I don't get the idea that if I hold and wait for long then bitcoin is considered as a reliable investment? In an investment, there will always be a win or lose and if you lose, that does not make bitcoin a fraud. You just need to be someone who is good at strategy.

[pankowri]

In my sense BTC is reliable but crypto currency never be stable.In this time one can invest in crypto in small amount in raw level.After getting much experience by practicing more and more then one can invest bigger.Because it is a high risk platform in this you can gain much or loss badly so avoid loss you have to work on that for a long time it will be fruitful for investors.In the case of big investment I suggest diversify of investment amount that make a portfolio helps you to avoid big risk and also get more experience.

[DarkDays]

Never think of any crypto coin as being stable. The two just don't go together, and in some instances the reliability part can be questioned too.

BTC is a serious asset but because it is volatile its predictability around stability just doesn't exit. And although not many people approve of this idea, one cannot exclude the possibility that at some point in the future BTC, similar to other crypto coins might well not be reliable, and their existence may well perish. Of course, this is up to how governments decide to regulate crypto in the future and what hurdles crypto and BTC holder need to face to maintain the value of their crypto asset. But I think any possible turn of events is possible; one where BTC might crumble and one in which BTC and crypto in general thrive and become the norm in world finance. 

Most like to think the latter is most appropriate due to what's at stake for them but the reality is that governments are still in power and their moves can at time be unpredictable.

[mezzaluna]

That is some big investment if thrown all at once but what is better to do within the Cryptocurrency Industry is to spread those investments and wait for a good opportunity to invest on an Alternate Cryptocurrency since within this Industry, its not all about Bitcoin. It would be good to invest on Bitcoin but I would not invest something that big since there can be other opportunities that can present itself along the way.

[shamimal93]

Investing in Bitcoin is really very risky.  Because the bitcoin market is never stable.  No one can say what will happen here.  You can benefit by investing your whole life money here and the whole money can go away again.  Since your friend's parents are not experienced about Bitcoin, I think they should not invest here.  But yes they can make long term investments in Bitcoin if they have extra money.  It may be more likely to benefit them.

[bitbunnny]

At this moment we can say that Bitcoin isn't something new and has some history that could be researched so anyone could make some research can see that Bitcoin is very volatile and unstable and therefore very risky. It isn't anything different than any other investment so there is no guarantee that your money will be safe and that you will make profit.

[Shallow]

Hi guys. I have a friend who's parents are looking for alternatives and want to invest money into something other than their IRA account. They have a fixed IRA with about $100K, but they are unsatisfied with the miserable amount of interest they're getting. I mentioned to them that bitcoin is a possible alternative and one they can look into. Do you agree? Do you guys consider bitcoin a reliable and stable investment for long term holding(5-10yrs)? Is it safe to assume the only direction(barring a few dips here and there) bitcoin will eventually go from here is up? Do you foresee it going below $10K, or even $9K ever again? Is it even possible to see the lows we saw a few months ago(ie $3500) ever again?

Please give me your thoughts. IRA or Bitcoin for the long term?

This is a tough one because it involves people who don't seems to know much about Bitcoin. I would first suggest you take them on an educative section about Bitcoin and the risks involved such as volatility, in so doing they will be left to make the choice themselves.
About Bitcoin, yes it is a reliable form of investment for long term however it is not a stable investment because of the unpredictable nature of the crypto space; and therefore no one can accurately say it will go below $10k or $9k but whichever it is, since it is long term holding then bear market shouldn't be a problem.
Left for me, I already know the valuable nature of Bitcoin and as such, I would invest a good amount in Bitcoin but not all while investing more in real estate or any profitable business, then a good amount of the profit from the business will still go back to Bitcoin.

[gurjasmeetsingh]

 I think serious question about btc is only that we should be aware before investment any project, even in btc.we should be much more knowledge about any type of project  we can see performance the past then we take decisions to invest. I think so.

[oliviarobert]

It's not only about how you can spend, but also about how to spend, Start by research, learning about the currency, what impact it, what its benefits and drawbacks are.

It might seem scary to invest in bitcoin, but you know it takes time and effort to understand how bitcoin functions.

[Rafael_Carrero]

There is no room for stability in nowadays world. Bitcoin is very volatile and risky as a result. If you need a stable asset, invest in gold.