Bitcoin is a “safe haven asset”

[LittleBitFunny]

That's right, OP. BTC is not a risky asset and just fluctuates whether it is slow or fast. We will be educated and have a basic understanding of how it works if we pay attention.

Well, if we look at the strong growth in Bitcoin prices, currently there may be many investors, institutions who have the argument that the traditional currency is ready to face disruption. At least BTC is seen as a psychological support level but I strongly believe this is because Bitcoin is much more stable than altcoins and there are many other trading influences on the price.

These are all important points because the market is not always predictable.

Based on what factors do you say that bitcoin is not a risky asset? If you compare bitcoin with altcoins then bitcoin is much safer but if you compare it with gold and traditional assets then it is a risky asset. Bitcoin's growth is incredible but that doesn't mean it is a risk-free asset.

For bitcoin to become a safe haven, many factors are needed and I agree with what @retreat has mentioned, popularity, government acceptance, regulations...Bitcoin does not yet meet those criteria to be called a safe haven.

[1714959397]

1714959397

[Essential10]

Many will say that Bitcoin investment is risky. Many will say that Bitcoin is not risky. The bottom line is how risky or risk-free I think, every invest site has a loss and a profit character. Bitcoin investment can be very risky and if not used properly, you can lose your principal. Educational advancement and getting the education you need is very important for cryptocurrency investing. Fully understanding and taking protective measures to keep oneself safe after human dilemmas or unknowns. Recently, Bitcoin investment has been increasing due to the interest of many people. Thinking about the future I think Bitcoin is safe, Bitcoin only depends on good credible investment version and can help yourself build some kind of financial capability. In life, you have to try to do something perfectly, not perfectly.

[EarnOnVictor]

That's right, OP. BTC is not a risky asset and just fluctuates whether it is slow or fast. We will be educated and have a basic understanding of how it works if we pay attention.

Well, if we look at the strong growth in Bitcoin prices, currently there may be many investors, institutions who have the argument that the traditional currency is ready to face disruption. At least BTC is seen as a psychological support level but I strongly believe this is because Bitcoin is much more stable than altcoins and there are many other trading influences on the price.

These are all important points because the market is not always predictable.

Based on what factors do you say that bitcoin is not a risky asset? If you compare bitcoin with altcoins then bitcoin is much safer but if you compare it with gold and traditional assets then it is a risky asset. Bitcoin's growth is incredible but that doesn't mean it is a risk-free asset.

For bitcoin to become a safe haven, many factors are needed and I agree with what @retreat has mentioned, popularity, government acceptance, regulations...Bitcoin does not yet meet those criteria to be called a safe haven.

I'm so thrilled with your response, and in fact, you are one of a few who say the truth as it is, not one of many who are painting Bitcoin what it is not. I love to be sincere and try as much as possible never to mislead people, Bitcoin is a risk-on asset, not a risk-off asset, this is obvious with the way it behaves and I simply don't know how those who are claiming it to be a safe-haven asset can't see this.

Maybe they are turning blind eyes, but how truly can an innovation of fewer than 2 decades suddenly become a safe haven, something many still fail to accept and governments treading carefully in dealing with? Bitcoin is good and I appreciate the innovation a lot, but it would take centuries before it can assume the role of what many think of it, that's if it would attain it at all. If you compare Bitcoin with other risk-on markets, you would understand this better as they behave the same. I wonder why some people can't see this as proof of fact.

[CryptoBuds]

For me personally, Bitcoin is not a safe haven asset, at the moment, because there is too much speculation, unclear regulations from the government, and dramas in the crypto market which often make Bitcoin's price unstable. Maybe in the future, if Bitcoin has been adopted by more people and the regulations are clear, then we can say that Bitcoin is a safe haven asset, but for now I don't really agree.

Many people won't like this, but if we're being frank, bitcoin is being used for speculation rather than people using it for the utility it brings. There is no denying that bitcoin theoretically offers really useful features for us. But ironically, most people are more concerned about profits and losses than focusing on the growth of bitcoin. So I agree with you that bitcoin has too much speculation and it cannot be called a safe asset yet.

Surely, in the distant future when things become clearer, when bitcoin is more popular and more widely accepted, it will be a safe asset. But now, it's more of a risky and volatile speculative asset.

[Obari]

What do you think about this and should we stop calling bitcoin a risky investment?

I don’t think the common man would want to call bitcoin a safe haven because the risk is still much in small investment amount and the joy and excitement in bitcoin comes when the investment amount is relatively high and I’ve always had a dream to own one full fraction of bitcoin (1 bitcoin) at least that’s one of the safest way to stay happy and at peace in the crypto Industry and if you’ve gone through my post, you’ll understand I’ve always talked about the benefits of owning higher amount of bitcoin if you want to stay at peaceful in the industry and I’m not shocked the company declared bitcoin a safe haven because they already had so much invested in it and since bitcoin is still rising, they should be expecting a more stress free growth.

In conclusion, bitcoin will be a safe haven for those who can afford more of it since I think the safety in bitcoin depends on how much you can invest.

[LittleBitFunny]

That's right, OP. BTC is not a risky asset and just fluctuates whether it is slow or fast. We will be educated and have a basic understanding of how it works if we pay attention.

Well, if we look at the strong growth in Bitcoin prices, currently there may be many investors, institutions who have the argument that the traditional currency is ready to face disruption. At least BTC is seen as a psychological support level but I strongly believe this is because Bitcoin is much more stable than altcoins and there are many other trading influences on the price.

These are all important points because the market is not always predictable.

Based on what factors do you say that bitcoin is not a risky asset? If you compare bitcoin with altcoins then bitcoin is much safer but if you compare it with gold and traditional assets then it is a risky asset. Bitcoin's growth is incredible but that doesn't mean it is a risk-free asset.

For bitcoin to become a safe haven, many factors are needed and I agree with what @retreat has mentioned, popularity, government acceptance, regulations...Bitcoin does not yet meet those criteria to be called a safe haven.

I'm so thrilled with your response, and in fact, you are one of a few who say the truth as it is, not one of many who are painting Bitcoin what it is not. I love to be sincere and try as much as possible never to mislead people, Bitcoin is a risk-on asset, not a risk-off asset, this is obvious with the way it behaves and I simply don't know how those who are claiming it to be a safe-haven asset can't see this.

Maybe they are turning blind eyes, but how truly can an innovation of fewer than 2 decades suddenly become a safe haven, something many still fail to accept and governments treading carefully in dealing with? Bitcoin is good and I appreciate the innovation a lot, but it would take centuries before it can assume the role of what many think of it, that's if it would attain it at all. If you compare Bitcoin with other risk-on markets, you would understand this better as they behave the same. I wonder why some people can't see this as proof of fact.

I am also a bitcoin investor and I really like it more than any other asset because of the returns it offers and its superior amenities. Bitcoin is truly a great innovation created for us. But we also need to remember one thing, we come here to seek profit, to seek what can bring good things to our lives. We are not here to worship or flatter anyone and then take unnecessary risks if something goes wrong. I prefer to live realistically to avoid trouble in life rather than live in illusion and possibly hurt myself at any time.

I also don't understand why people like to exaggerate bitcoin more than necessary, while that doesn't make bitcoin any better. Indeed, Bitcoin is really good but it is too early to confirm anything about it.

[Tony116]

What do you think about this and should we stop calling bitcoin a risky investment?

I don’t think the common man would want to call bitcoin a safe haven because the risk is still much in small investment amount and the joy and excitement in bitcoin comes when the investment amount is relatively high and I’ve always had a dream to own one full fraction of bitcoin (1 bitcoin) at least that’s one of the safest way to stay happy and at peace in the crypto Industry and if you’ve gone through my post, you’ll understand I’ve always talked about the benefits of owning higher amount of bitcoin if you want to stay at peaceful in the industry and I’m not shocked the company declared bitcoin a safe haven because they already had so much invested in it and since bitcoin is still rising, they should be expecting a more stress free growth.

In conclusion, bitcoin will be a safe haven for those who can afford more of it since I think the safety in bitcoin depends on how much you can invest.

Do you mean people who are investing money they can afford to lose and consider it a safe haven? If that's what you want to say, I think they are also making trade-offs and accepting risks to receive greater profits, so cannot be called a safe haven. A safe haven is a place where you can completely trust and feel secure that your assets are located there. Also, not only your faith in it but it should be widely recognized as a safe haven. And to achieve these requirements, currently only gold and real estate are worthy of being called safe havens.

[Abiky]

For me personally, Bitcoin is not a safe haven asset, at the moment, because there is too much speculation, unclear regulations from the government, and dramas in the crypto market which often make Bitcoin's price unstable. Maybe in the future, if Bitcoin has been adopted by more people and the regulations are clear, then we can say that Bitcoin is a safe haven asset, but for now I don't really agree.

Exactly. Bitcoin needs more time to mature before it can be called a "safe haven asset". Establishing a friendly regulatory environment for Bitcoin is the first step towards building the trust of mainstream investors and traders alike. Once the industry is properly legitimized, nothing should stop Bitcoin from becoming an alternative to Gold. The limited supply, deflationary mechanism, and censorship-resistant design are all qualities of sound money. Bitcoin is perfectly capable of being a hedge against inflation. It's just that the world doesn't know it yet.

Remember, the "early bird catches the worm". If we invest into BTC before it becomes mainstream, we'd be early adopters of the revolution. Who knows if it will make us filthy rich in the future?

[Odohu]

That's right, OP. BTC is not a risky asset and just fluctuates whether it is slow or fast. We will be educated and have a basic understanding of how it works if we pay attention.

Well, if we look at the strong growth in Bitcoin prices, currently there may be many investors, institutions who have the argument that the traditional currency is ready to face disruption. At least BTC is seen as a psychological support level but I strongly believe this is because Bitcoin is much more stable than altcoins and there are many other trading influences on the price.

These are all important points because the market is not always predictable.

Based on what factors do you say that bitcoin is not a risky asset? If you compare bitcoin with altcoins then bitcoin is much safer but if you compare it with gold and traditional assets then it is a risky asset. Bitcoin's growth is incredible but that doesn't mean it is a risk-free asset.

For bitcoin to become a safe haven, many factors are needed and I agree with what @retreat has mentioned, popularity, government acceptance, regulations...Bitcoin does not yet meet those criteria to be called a safe haven.

I am also interested in learning your reason for saying that Bitcoin is a risky asset. If you buy gold today or stock, you will not sell the next day, you will probably hold for years or until you see considerable profits. Can you do the same for Bitcoin and not make profit? People tend to use double standard for Bitcoin, they want quick profits from Bitcoin but when it come to other asset or investment instruments, they are patient.

I have checked the historic data of Bitcoin, within every five years, Bitcoin always give huge profits irrespective of the entry price. This is not what I consider as risky because the only risk is when sold at the wrong time. Those who bought at the peak of 2021 might still be in loss in terms of dollars but the Bitcoin quantity is still intact and hopefully before 2026, price might surpass their entry price and give them good profits. Even this is not guaranteed but the chances are high. I don't really see Bitcoin as too risky.

[Peanutswar]

People already look forward to the help of Bitcoin well actually like other assets once you make a good entry it will return a good profit but the difference right here is people think they are safe because if bitcoin moves out with their investment they won't lose too much because its just a small amount they will only feel the lose of the percentage of the asset if they are one of the biggest contributors. Also, people now see the next halving they are now making accumulating of bitcoin as they can because they see the potential of the bitcoin to give profit and we know when it comes to the uptrend of the bull market most of their portfolio will fly.

[mv1986]

For me personally, Bitcoin is not a safe haven asset, at the moment, because there is too much speculation, unclear regulations from the government, and dramas in the crypto market which often make Bitcoin's price unstable. Maybe in the future, if Bitcoin has been adopted by more people and the regulations are clear, then we can say that Bitcoin is a safe haven asset, but for now I don't really agree.

Exactly. Bitcoin needs more time to mature before it can be called a "safe haven asset". Establishing a friendly regulatory environment for Bitcoin is the first step towards building the trust of mainstream investors and traders alike. Once the industry is properly legitimized, nothing should stop Bitcoin from becoming an alternative to Gold. The limited supply, deflationary mechanism, and censorship-resistant design are all qualities of sound money. Bitcoin is perfectly capable of being a hedge against inflation. It's just that the world doesn't know it yet.

Remember, the "early bird catches the worm". If we invest into BTC before it becomes mainstream, we'd be early adopters of the revolution. Who knows if it will make us filthy rich in the future?

A regulatory environment can be fragile, but Bitcoin is not fragile. People know what to expect from the network and the rules that are set in stone within it, but people can never know which party will be elected tomorrow, what their true intentions are for a neutral payment network not under their full control, and how laws that were passed yesterday will be interpreted by the judiciary tomorrow, and whether the laws will cease to exist because of a change in political sentiment or on behalf of executive order due to a changing political landscape.

I have nothing against regulation, but I think we can all observe in real time now how quickly consent on a topic, no matter the importance of that topic, can change.

But it's right that calling Bitcoin a safe haven according to the commonsense is maybe too early or plainly wrong for some people, while being right for others. It is definitely an asset class that plays a multifaceted role in our world now.

[HideYourKeys]

We will see more articles like this in the coming years. I agree, ofc

[goldkingcoiner]

Previously, not only did the world consider bitcoin a highly volatile and high-risk asset, but even those of us who invested in bitcoin considered it a high-risk asset. But I think we should gradually change that concept as well as change the way we call it, bitcoin is no longer a risky asset. Recently AllianceBernstein, an asset manager with $699 billion, called bitcoin a safe haven and even more attractive than gold.

For me, this is the first time I've seen a traditional company admit and call bitcoin a safe haven and consider it superior to gold. What do you think about this and should we stop calling bitcoin a risky investment?
https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns

A traditional asset investor is really a good person to have on our side. They tend to serve as a connection between the traditional investing and the modern, crypto investing. They can leverage this with others who are still skeptical of Bitcoin. A coiner could not possibly convince the stubborn, but their friends might. Especially if its a known and trusted face.

Bitcoin in indeed a safe haven. Safe from everyone, including the government. Thats the part that the government really dislikes, but what can they possibly do? I think nothing is what they can do.

[DanWalker]

Any investment that can generate profits has potential risks, but whether the risk is large or small depends on the type of asset, not all assets have the same level of risk. Why doesn't anyone call gold a high-risk asset but call it a safe haven? Meanwhile, bitcoin is still considered a risky asset and when it comes to whether it is a safe haven or not, there is a lot of debate. No asset can provide high returns while also having a high level of safety, bitcoin is no exception.

Gold has a lower risk than Bitcoin because of its relatively-stable market prices. In other words, Gold's volatility is much lower than Bitcoin's. This could be the result of market maturity. After all, Gold has been trusted by many people for centuries. Bitcoin is only 14 years old. The approval of a spot Bitcoin ETF is the first step towards market maturity. But it's simply not enough to make BTC surpass Gold's market cap (or at least get close to it).

We're going to need to wait decades (or even a century) before BTC becomes recognized by many as an alternative "safe haven asset". I'm fine with that as long as Bitcoin stays decentralized and censorship-resistant. Who knows if Fiat currencies will die, leaving us only with BTC and Gold as the main driving forces of the global economy? Just my thoughts

It's the truth, gold is actually safer than bitcoin, but many people are stubborn and pretend not to know when they think bitcoin is safer than gold. To be fair, in terms of profit, gold cannot be compared with bitcoin, but in terms of safety, gold is completely superior to bitcoin.

Yes, ETF is a new start for bitcoin on the path to becoming a safe asset, I also believe that once ETFs are accepted, people will have a more friendly view of bitcoin. The popularity and demand of bitcoin will increase significantly thanks to ETFs and help it be considered a safe asset. But right now, bitcoin really isn't a safe haven.

[Abiky]

A regulatory environment can be fragile, but Bitcoin is not fragile. People know what to expect from the network and the rules that are set in stone within it, but people can never know which party will be elected tomorrow, what their true intentions are for a neutral payment network not under their full control, and how laws that were passed yesterday will be interpreted by the judiciary tomorrow, and whether the laws will cease to exist because of a change in political sentiment or on behalf of executive order due to a changing political landscape.

I have nothing against regulation, but I think we can all observe in real time now how quickly consent on a topic, no matter the importance of that topic, can change.

But it's right that calling Bitcoin a safe haven according to the commonsense is maybe too early or plainly wrong for some people, while being right for others. It is definitely an asset class that plays a multifaceted role in our world now.

That's certainly true, mate. Bitcoin is resilient and impervious against government actions. Regulations are only meant to protect investors from scams and whatnot. They will only work on centralized exchanges and service providers, but not on the Blockchain protocol itself. If regulations become too tight, people will find other means to get access to Bitcoin. You can thank its decentralized and censorship-resistant design for that.

I think BTC will eventually become a "safe haven asset" as Gold becomes "a thing of the past". You'd just need to give it more time to mature. With institutional demand rising by the day, you can be certain BTC will be used worldwide during uncertain times. Who knows how far its value will go by the time this happens? Just my thoughts

[mv1986]

A regulatory environment can be fragile, but Bitcoin is not fragile. People know what to expect from the network and the rules that are set in stone within it, but people can never know which party will be elected tomorrow, what their true intentions are for a neutral payment network not under their full control, and how laws that were passed yesterday will be interpreted by the judiciary tomorrow, and whether the laws will cease to exist because of a change in political sentiment or on behalf of executive order due to a changing political landscape.

I have nothing against regulation, but I think we can all observe in real time now how quickly consent on a topic, no matter the importance of that topic, can change.

But it's right that calling Bitcoin a safe haven according to the commonsense is maybe too early or plainly wrong for some people, while being right for others. It is definitely an asset class that plays a multifaceted role in our world now.

That's certainly true, mate. Bitcoin is resilient and impervious against government actions. Regulations are only meant to protect investors from scams and whatnot. They will only work on centralized exchanges and service providers, but not on the Blockchain protocol itself. If regulations become too tight, people will find other means to get access to Bitcoin. You can thank its decentralized and censorship-resistant design for that.

I think BTC will eventually become a "safe haven asset" as Gold becomes "a thing of the past". You'd just need to give it more time to mature. With institutional demand rising by the day, you can be certain BTC will be used worldwide during uncertain times. Who knows how far its value will go by the time this happens? Just my thoughts

There is no action without a reaction ever in life. The question is how hard a reaction to an action will be and this depends on how much an action matters to someone in life or whether that action creates incentive for reactions. An easy example would be the creation of decentralized exchanges in response to overregulation and KYC processes for centralized exchanges. If regulation for Bitcoin becomes too tight and there is a market for privacy-preserving exchange of info, money, goods and services, those applications will be developed as there is sufficient incentive to go for it. That's why politicians are well-advised to think thoroughly about their actions before they shove regulations down the throat of the users.

[LittleBitFunny]

That's right, OP. BTC is not a risky asset and just fluctuates whether it is slow or fast. We will be educated and have a basic understanding of how it works if we pay attention.

Well, if we look at the strong growth in Bitcoin prices, currently there may be many investors, institutions who have the argument that the traditional currency is ready to face disruption. At least BTC is seen as a psychological support level but I strongly believe this is because Bitcoin is much more stable than altcoins and there are many other trading influences on the price.

These are all important points because the market is not always predictable.

Based on what factors do you say that bitcoin is not a risky asset? If you compare bitcoin with altcoins then bitcoin is much safer but if you compare it with gold and traditional assets then it is a risky asset. Bitcoin's growth is incredible but that doesn't mean it is a risk-free asset.

For bitcoin to become a safe haven, many factors are needed and I agree with what @retreat has mentioned, popularity, government acceptance, regulations...Bitcoin does not yet meet those criteria to be called a safe haven.

I am also interested in learning your reason for saying that Bitcoin is a risky asset. If you buy gold today or stock, you will not sell the next day, you will probably hold for years or until you see considerable profits. Can you do the same for Bitcoin and not make profit? People tend to use double standard for Bitcoin, they want quick profits from Bitcoin but when it come to other asset or investment instruments, they are patient.

I have checked the historic data of Bitcoin, within every five years, Bitcoin always give huge profits irrespective of the entry price. This is not what I consider as risky because the only risk is when sold at the wrong time. Those who bought at the peak of 2021 might still be in loss in terms of dollars but the Bitcoin quantity is still intact and hopefully before 2026, price might surpass their entry price and give them good profits. Even this is not guaranteed but the chances are high. I don't really see Bitcoin as too risky.

As I said, assets that bring high returns do not mean they are safe, do you remember the saying "the higher the return, the higher the risk"? The risk here we need to consider is the level of acceptance and popularity of bitcoin, not just talking about profits. We always say that bitcoin is very popular but how many stores have you seen accepting it, how many people know about bitcoin and are ready to accept it? As far as I know, less than 10% of the world's population invests in bitcoin, whereas if we talk about gold, you will see how much people like it.

You just have to look at the market capitalization of both and you will clearly see the difference: one asset is thousands of years old and is accepted worldwide anywhere and has a capitalization of almost 12k billion dollars. Meanwhile, bitcoin is only 500 billion USD and not many governments have legalized it. In your opinion, which is safer?

[bayu7adi]

Once we've proven that Bitcoin keeps rising every year, holding onto it seems risk free... this confidence is expected to persist as the asset continues to grow.

However, BTC remains volatile, and that's an inherent trait. I can say that the risk with Bitcoin is relative, depending on how people treat it. Everyone has a different perspective on this, and I can conclude that there are two types of investors who will view this either as a risky or non-risky asset: long term investors and short term investors.

Long term investors are always optimistic about the future based on their fundamental analysis... and daily price changes don't bother them because they not monitor short term price movements.

On the other hand, short term investors clearly see this as high risk, as daily candlestick fluctuations go up and down due to its volatility... those who don't have good trading skills may face losses because they consider too many calculations. This is the real risk because no one knows whether Bitcoin will go up or down tomorrow. It all happens spontaneously due to market conditions and circulating news.

[EquilibriumOdds]

Once we've proven that Bitcoin keeps rising every year, holding onto it seems risk free... this confidence is expected to persist as the asset continues to grow.

If you look Bitcoin with its yearly candles, you will see better growth of Bitcoin.

Buy at top, sell at bottom are for losers and if you look at Bitcoin max price year by year, it can make you disappointed as more people will be losers.
If you look at it with Bitcoin min price year by year, it shows you more solid growth of Bitcoin with time.

https://charts.bitbo.io/yearly-candles/

[Blitzboy]

Once we've proven that Bitcoin keeps rising every year, holding onto it seems risk free... this confidence is expected to persist as the asset continues to grow.

However, BTC remains volatile, and that's an inherent trait. I can say that the risk with Bitcoin is relative, depending on how people treat it. Everyone has a different perspective on this, and I can conclude that there are two types of investors who will view this either as a risky or non-risky asset: long term investors and short term investors.

Long term investors are always optimistic about the future based on their fundamental analysis... and daily price changes don't bother them because they not monitor short term price movements.

On the other hand, short term investors clearly see this as high risk, as daily candlestick fluctuations go up and down due to its volatility... those who don't have good trading skills may face losses because they consider too many calculations. This is the real risk because no one knows whether Bitcoin will go up or down tomorrow. It all happens spontaneously due to market conditions and circulating news.

Long-term and short-term Bitcoin investors are clearly divided. Its important to recognise that Bitcoin is a financial game-changer, but its not for everyone. Long-term investors have welcomed Bitcoin's volatility as an opportunity. They recognise that Bitcoin's worth lies in its potential to revolutionise wealth storage and movement in the next decades, not everyday volatility.

Now, on to short-term investors. The trip will be crazy, but volatility is where they find fun and profit. Not everyone has the stomach or strategy for this high-stakes game. However, to reject short-term trading as speculation ignores market analysis and good traders' human behaviour understanding.

Bitcoin's volatility, driven by market dynamics and news, is fascinating. Its about joining a financial revolution, not just investing. Long-term or short-term, risk is high. Bitcoin's price fluctuations are a sign of life in a market thats changing our concept of value and investing.