Bitcoin is risky

[Reatim]

If I say Bitcoin grew from a hundredth of a cent to $74,000 in just a decade and a half, that's true. That's thousands and thousands of percentage in growth. And people might be immediately amazed at what it did and jump right into investing in it. But while true, that's limited. Because, on the other hand, Bitcoin had also lost 30%, 50%, 80%, even 99% of its price in a matter of mere hours and days. This is also true yet, again, limited. If one is to emphasize this, however, many might decide not to invest in it.

Rather than convincing them with your explanation, you can give them this link to Bitcoin & Traditional Assets ROI (vs USD) with a table for ROIs of Bitcoin compares to Gold, S&P500. If they need visualization, you can introduce the ROI chart.

Both resources are helpful for them to see good ROI of Bitcoin with time, historically but if they can see smaller ROIs of Bitcoin in recent years. With time, Bitcoin has higher price and bigger market cap, so as explainable by financial rules, its ROI must shrink and become smaller.

My point is that the intention is to either inform and educate or convince somebody. With the former, there's the complete picture. With the latter, there's bias. By presenting him/her the ROI chart, for example, the intention is probably to entice or attract him. He/she might be convinced and buy. However, in the process, you might have missed preparing him/her of the possibility or even eventually of Bitcoin losing big time in a very short period of time or a severe and continuous correction which needs years to recover.

Yup. Exactly.

I have read many cases here in the forum where bitcoin enthusiasts who introduced bitcoin to other people got blamed for their own losses in bitcoin. I realized that maybe because we weren't being realistic. This is also why some people still view bitcoin or crypto as a pyramid scheme. Yes bitcoin is good and it changed my life but I also had to be careful otherwise I would have lost a lot of my money. It is not all glory days but it sure is worth sticking through the bad ones.

Anyway, thank you for all the replies and I would make sure to show this to my friend if he still is curious and would want to know about bitcoin more.

[Blitz23]

For sure Bitcoin is risky, but that's the main reason why it is backup by stats and facts. Show your friend the recent stats of uprising gains and benefits of bitcoin it will change his life.

[synchronym]

Recently I had to explain to a friend what I was focusing in on financially speaking and I brought up crypto, specifically bitcoin. He was confused at first because he heard that it was unstable and risky. I knew that he already has a bad image of bitcoin so there was an urge to defend bitcoin but in the end I did not.

Because it was true. Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable. I realized that this does not necessarily have to be a bad thing especially if you are knowledgeable enough to minimize these risks. It was easy to get defensive but, in the end, I just explained to that friend that that is why it requires much attention and studying.

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly. I did this so that my friend would not worry about my financial state and if he ends up becoming interested in bitcoin then I would be glad to continue teaching him.

You have explained your friend rightly because in Bitcoin investment if we invest without awareness then we cannot achieve much success through this investment. Undoubtedly Bitcoin is risky but if we can invest properly with long term plan keeping that pair in mind then surely we can achieve enough success with Bitcoin investment which will make us more interested in investing. Many new investors lose patience in a short time so we should not lose patience in a short time we should always invest patiently with a long term plan and check the market so that we do not face losses. By checking the Bitcoin market and investing with patience, long-term planning and awareness of the market, we will definitely have time to achieve substantial success for the purpose for which we invest in Bitcoin.

[retreat]

Calling it riskier is also not true and I don't really agree with it, because Bitcoin only has a price that tends to be volatile but that doesn't make it risky, it is trusted and can be relied on by users. And that's why I don't like to say "Bitcoin is risky" to ordinary users, because they will see Bitcoin as untrustworthy, but I prefer to say that Bitcoin is volatile and anyone who wants to invest in it should think about the risk of investing in volatile assets.

[Wind_FURY]

Source image: bitcoinmagazine

That's actually NOT right. Gold has also been going up, but a much slower speed, with much lesser volatility if we compare it to Bitcoin. It's currently in its own all time time high right now. For people who don't want the volatility, and merely want a slower surge in price, then Gold might be the more preferable investment.

¯\_(ツ)_/¯

But Gold has taken it more than 20 years for its 10x. Bitcoin can surge to 10x in mere months.

[tottong]

Recently I had to explain to a friend what I was focusing in on financially speaking and I brought up crypto, specifically bitcoin. He was confused at first because he heard that it was unstable and risky. I knew that he already has a bad image of bitcoin so there was an urge to defend bitcoin but in the end I did not.

When it comes to finances it is quite sensitive because people only think about the good stuff in making money.
Most don't consider the process they have to go through and don't know how to make a comparable return.
There is a lot of confusion for people who are new to bitcoin because they may talk about fluctuations, but once they get to know it well this is what drives them to get more involved in an investment.

In order to be wiser and well-received by them, provide an understanding of minimizing risk and learning to recognize the process of bitcoin's journey in the market from when it was launched until now.
Thus they have an idea before deciding to get involved in it or not and this can make them better understand how bitcoin really works.

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly. I did this so that my friend would not worry about my financial state and if he ends up becoming interested in bitcoin then I would be glad to continue teaching him.

There is no point in lying and the public disclosure of information regarding crypto has grown so much. But maybe we should talk specifically about bitcoin, why it is important to talk about it so that there is no confusion for people who are new to it. When we have learned bitcoin properly, that is where we can think about maximizing the risks generated in bitcoin.

[OcTradism]

My point is that the intention is to either inform and educate or convince somebody. With the former, there's the complete picture. With the latter, there's bias. By presenting him/her the ROI chart, for example, the intention is probably to entice or attract him. He/she might be convinced and buy. However, in the process, you might have missed preparing him/her of the possibility or even eventually of Bitcoin losing big time in a very short period of time or a severe and continuous correction which needs years to recover.

You can show then a big view with long term trend, that is bullish, first. Later you can inform them about advantages of focusing investment plan and capital management on long term as well as risk of short term volatility in this volatile market. I see your point, that is true, and by showing and convincing them that short term approach involves more risk than long term approach, you can more likely direct them toward long term investment.

The Bitcoin Sell-Off History

Many people have quit Bitcoin after losing patience, after being disappointed and frustrated repeatedly, and so on. It's probably because they were conditioned to expect only the good moments. In reality, there aren't only good days; there are also bad days.

It is because they didn't do due diligent research for their capital and investment management. If they do such research, they will be able to know more about history of the market and know about short term and long term movements of Bitcoin market.

By understanding these things well, they will have better preparation on capital management as well as mentality. Mentality or psychology preparation is important to help them avoid panic reactions when Bitcoin has sell-offs or crashes.

[AprilioMP]

Source image: bitcoinmagazine

That's actually NOT right. Gold has also been going up, but a much slower speed, with much lesser volatility if we compare it to Bitcoin. It's currently in its own all time time high right now. For people who don't want the volatility, and merely want a slower surge in price, then Gold might be the more preferable investment.

¯\_(ツ)_/¯

But Gold has taken it more than 20 years for its 10x. Bitcoin can surge to 10x in mere months.

True. Gold has increased.
Regarding the image showing the Bitcoin, Gold and Fiat lines, I also do not fully agree, especially Gold, although on the one hand this flat Gold line can be justified because its rate is different from Bitcoin. This is not much different from what you said that Gold takes decades to reach the increasing line, while Bitcoin can reach a price spike in a short time.
Making both of them quite good investment assets by grouping Gold as a reserve fund.

[Smack That Ace]

Calling it riskier is also not true and I don't really agree with it, because Bitcoin only has a price that tends to be volatile but that doesn't make it risky, it is trusted and can be relied on by users. And that's why I don't like to say "Bitcoin is risky" to ordinary users, because they will see Bitcoin as untrustworthy, but I prefer to say that Bitcoin is volatile and anyone who wants to invest in it should think about the risk of investing in volatile assets.

High volatility is also considered risky because it can cause large losses in a short period of time if someone is ignorant and rushes to invest in bitcoin.
Additionally, if we evaluate it fairly and compare it with other assets such as gold or real estate, bitcoin has huge risks. Not only stability, legitimacy, popularity...bitcoin is incomparable to other assets. Some countries haven't even legalized bitcoin yet, and there's no guarantee that governments that have legalized it won't suddenly reverse their declarations. Or bitcoin could seriously lose value if the world experiences a major incident...These things can happen at any time. Meanwhile, assets that have been proven over thousands of years such as gold will be less affected.

There is no investment that is both safe and can bring high profits. The higher the profit, the higher the risk.

[EarnOnVictor]

You've done well my friend, many would tell their friends/associates the positive part of Bitcoin but will be silent about the negative part. When the issue arose, such an introducer would now be a bad person in the sight of the friend/associate which is supposed not to be. As I tell people about Bitcoin, I also tell them the pros and cons immediately and still mandate them to do their own research. By that, I've exonerated myself if they had a bad experience investing.

Like I always tell the bigots here, Bitcoin investment is not an automatic wealth creation and it is evident with what the majority can say about it based on their experience. Many are losing, it's a fact, which is why we should not be investing in Bitcoin blindly. It's good to strike it at the right price (low) and effectively monitor your investment to avoid some unforeseen circumstances. I've also discovered that investing and divesting at the right time suggested by chart reading is key to maximizing our Bitcoin earnings and not the popular HODLing that might no longer be feasible to earn you multiples of your gains, especially if Bitcoin remains at a high price of about $60,000 and above.

[michellee]

Before we introduce Bitcoin or crypto to other people, we must search for people who can accept our explanation. Like what I gets with my neighbor. We discuss with crypto but I know that we can not argue with hard and nothing we can get from that discussion.

I let him with his understanding about crypto especially Bitcoin while I explain what I know about crypto. I tell them that investing in Bitcoin have the risks so if they don't want to get the big risks, they can start with the money they can afford. I tell them that the important is not panic when the market is down.

But I don't force them to invest in Bitcoin. That will be their decision to invest in Bitcoin or not because I just only introduce to them and let them decide. That is why they must learn how to minimize the risks by only using the money they can afford to use and other things.

[Smartvirus]

Because it was true. Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable. I realized that this does not necessarily have to be a bad thing especially if you are knowledgeable enough to minimize these risks. It was easy to get defensive but, in the end, I just explained to that friend that that is why it requires much attention and studying.

Every commodity experiences some level of volatility at some point. The thing is, some commodity are more volatile than others especially, when it’s not regulated by some authority as is the case with Bitcoin and many cryptocurrency assets.

You did good having to explain these things to your friends understanding but, volatility isn’t a risk. The way you approach or choose to use it is what makes it bad or good for you. The unfortunate truth is, you can’t accurately predict the market and most times, people end up not taking actions on their predictions but, that’s how you survive in this, trusting in your own analysis which takes time to master.

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly.

The worst thing you can do to someone is, just telling them all success stories and how they could build a fortune out of Bitcoin or crypto asserts. You might end up having that individual bugging the very peace out of your everyday.

[Kelward]

Most of us were skeptical about Bitcoin at some point and eventually either by research or word of mouth we were able to see it as what it is, a store of value. I used to preach about the profitability of Bitcoin as a valuable asset when I first joined the forum as a newbie but the negative response that I got made me to only enlighten people that shows genuine interest to learn about it. Most of them either thought that I want to scam them or that I was introducing them to a Ponzi scheme but I'm glad that some are into cryptocurrency now. Bitcoin as a volatile crypto but you can't compere it to other cryptocurrencies that are risky, most will dip and never recover and they'll be dead with investors funds.

[benalexis12]

Recently I had to explain to a friend what I was focusing in on financially speaking and I brought up crypto, specifically bitcoin. He was confused at first because he heard that it was unstable and risky. I knew that he already has a bad image of bitcoin so there was an urge to defend bitcoin but in the end I did not.

Because it was true. Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable. I realized that this does not necessarily have to be a bad thing especially if you are knowledgeable enough to minimize these risks. It was easy to get defensive but, in the end, I just explained to that friend that that is why it requires much attention and studying.

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly. I did this so that my friend would not worry about my financial state and if he ends up becoming interested in bitcoin then I would be glad to continue teaching him.

What's up, Op? Did you go through being a newbie before in this field of the bitcoin industry? So you should also really know that he will not really get or understand Bitcoin or the crypto space right away. It's not because you explained it now that he will understand it right away.

All of us here in the Bitcoin business community did not immediately understand bitcoin or crypto in the first day, first week, or first month; it took time before we became deeply understanding of this matter. No matter what you explain to your friend—that is a basic explanation—he still won't really understand it right away. Your friend needs to spend time learning this. It's not enough to just say that Bitcoin is risky, because that's a given. Then your friend needs willingness, determination, and passion if he really wants to understand Bitcoin. Though your intention is good to you friend. I understand you op.

[Z_MBFM]

Sure, Bitcoin might be risky, but have you ever tried letting a Tesla drive you around in autopilot mode? Now that’s a thrill ride! Or how about sitting on a Boeing 737 and realizing that sometimes even the skies have their surprises? Compared to that, Bitcoin’s volatility is just a little spice in the investment soup. At least with Bitcoin, you’re in the pilot’s seat—no autopilot required!

All investments in the world are risky.  Will you invest in shares of companies like Tesla, Apple, Amazon, can you guarantee profit from them?  Do they ever go down in price?  Bitcoin is one of the most trusted currencies in the crypto world. If one cannot invest in Bitcoin then it is not safe to invest in any other coin. If you invest, there will be risk and if you don't accept risk, you can never gain. so I would say long term investment in Bitcoin is not risky as we know about the history of Bitcoin

[Tmoonz]

Recently I had to explain to a friend what I was focusing in on financially speaking and I brought up crypto, specifically bitcoin. He was confused at first because he heard that it was unstable and risky. I knew that he already has a bad image of bitcoin so there was an urge to defend bitcoin but in the end I did not.

Because it was true. Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable. I realized that this does not necessarily have to be a bad thing especially if you are knowledgeable enough to minimize these risks. It was easy to get defensive but, in the end, I just explained to that friend that that is why it requires much attention and studying.

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly. I did this so that my friend would not worry about my financial state and if he ends up becoming interested in bitcoin then I would be glad to continue teaching him.

Yeah Bitcoin is risky but it is not as much risky as Many people claims and proclaims, it is always advisable to investment from your disposable or discretional income after you must taken care of whatever you might have considered to be a basic need, by investing the amount readily available for investment with as little as comfortably you can be with, Bitcoin investment is more like investing an amount that you are not going to make used of, you did well by telling him about volatility nature of Bitcoin but people who understands Bitcoin dynamics takes advantage of Bitcoin volatility by buying more Bitcoin, but however it is not by force for anyone to invest in Bitcoin as it has more to do with a personal conviction to ever consider investing in Bitcoin. The DCA strategy helps an inexperienced to have experience while already in market, consider teaching your friend about DCA.

[kryptqnick]

I believe it's better to be honest about the risks. I mean, we don't want people to blame us when they invest and then lose their money to scams, panic selling during the bear market, accidentally typing the wrong address and sending it there, forgetting where they put information to access the wallets, etc. There are many things that can go wrong with Bitcoin investment, and people do need to take it seriously because it's quite different from centralized services they're used to dealing with all the time, where many mistakes can be fixed by contacting support.

[HajiBagi]

Do not lie to people about what crypto is just so they would not think of it as something not worthwhile. Rather explain eagerly. I did this so that my friend would not worry about my financial state and if he ends up becoming interested in bitcoin then I would be glad to continue teaching him.

You are right, we should not lie to people about crypto just because we want to engage in it, it is very risky to lie to people about crypto because that can make people lose trust in you and they will never believe anyone about crypto again, I have seen many people who never believe in crypto and it’s because of what they have heard about crypto and how some people have been deceived, bitcoin is a very risky investment and it helps to those who know about it and be patient to hold for a long period.

When you are trying to educate others about Bitcoin make sure you explain directly and clearly so that anyone interested will take the risk and buy Bitcoin, and also in the process of introducing Bitcoin to people make sure you give them some details that they will go through it and read more carefully to understand what bitcoin is all about so that at the end no one will say you didn’t explain to them that they will understand what bitcoin is about.

[TsenTsen]

I couldn't agree more. Moreoever, I blame social media' investment influencers who are hyping young people to jump into cryptocurrency without making them understand the risk first, I was also one of them and had to learn it the hard way. We have to learn about cryptocurrency from someone who could give us the objective overviews on its pro and cons without trying to brainwash us into joining them but ended up selling some private classes.

We should do our own research and deep understanding about investment, trading, and cryptocurrency before deciding to join the hype

[Adams0001]

Calling it riskier is also not true and I don't really agree with it, because Bitcoin only has a price that tends to be volatile but that doesn't make it risky, it is trusted and can be relied on by users. And that's why I don't like to say "Bitcoin is risky" to ordinary users, because they will see Bitcoin as untrustworthy, but I prefer to say that Bitcoin is volatile and anyone who wants to invest in it should think about the risk of investing in volatile assets.

Anything that is an investment or a company will undoubtedly be risky, and bitcoin, in my opinion, is risky since it is unpredictable and cannot be predicted, and I am sure even the professional understands this. If you invest for the long term, you will not recognize the danger as such because profiting from bitcoin requires long periods of time. They have many people that invest in bitcoin for short term to gain profit, and he can't be feasible some time, because sometimes the market doesn't go well and the price decreases, which affects your money, and if you are not someone who is patient when you so your money is decrease, you will started thinking that you will lose all your money and plan to sell it at lose before you lose all.

If you do not have a source of income, you will not see the risk in bitcoin because you have funds to support your investment, and when the bitcoin falls, you will get something to top it off, or you will lose it for a long time because you believe you will get the capital and profits back because you understand how bitcoin works. If bitcoin is not risky, everyone will invest in it. If bitcoin is not risky, you will not make a profit, so saying you will make a profit every day without losing money is impossible.