Bitcoin is risky

[Ca4gil]

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.

I think this is the right position. If a person starts to be afraid, thinks it's risky, it's basically true, and you don't need to prove it to them. And if they are interested, then you can tell them more.

[m2017]

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.

Any investment is unstable and risky. I would say that our whole life is a multitude of risks. But in the case of any risks, the final result is assessed first, that is, when investing in bitcoin - potential profit.

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.

Traders will agree with you about volatility, that it is not bad at all, because it is due to this very volatility that they earn.

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.

And I think that we need to go further: to show how cryptocurrencies work and best of all, practically, at those moments when it is necessary. For example, you need to pay someone for a service, then pay in crypto and at that moment demonstrate all the advantages of this financial instrument.

[Catenaccio]

Any investment is unstable and risky. I would say that our whole life is a multitude of risks. But in the case of any risks, the final result is assessed first, that is, when investing in bitcoin - potential profit.

Investment is similar other things in life which require us to do consideration, assess risk and chance to make decisions. There is nothing in life only includes chance but does not have risk. It's only up to us ignoring risk and only blindly see opportunity and if we are seeing things in life this way, we are risk-ignorant people and will be charged expensive cost when risk turns to actual bad things in life.

Traders will agree with you about volatility, that it is not bad at all, because it is due to this very volatility that they earn.

Traders are more risk takers than investors but both need to accept risk, afford to lose initial capital before starting investment or trading. By taking risk, they do see volatility in this market, accept it and even see chances to get profit from market volatility.

And I think that we need to go further: to show how cryptocurrencies work and best of all, practically, at those moments when it is necessary. For example, you need to pay someone for a service, then pay in crypto and at that moment demonstrate all the advantages of this financial instrument.

From Bitcoin to cryptocurrency is big difference as we all know a fact that Bitcoin is less volatile than altcoins and Bitcoin is stronger than altcoins in survival in this market. People have to pay bigger cost with altcoins than with Bitcoin in case their invested altcoins go wild and lose prices in the market.

[el kaka22]

While I do agree that bitcoin has some sides that I would like to fix (energy efficiency, high transaction costs, low speed of transactions), I would not say that it is risky. Just because it is volatile doesn't mean it's risky, if you buy at 70k and sell at 30k then that's your risky move and not about crypto, any investment can fall, not selling is an option and you could DCA and drop your average and then sell for a lot more when it recovered. Most people think that you have to make a profit very quickly or it doesn't worth it, but in reality when it takes longer to recover then you have a chance to make a bigger profit.

Anyone who bought at 65k+ during 2021, had about two to three years to collect more and more, they could have collected way more and it could have been awesome for them and instead they just ended up with nothing at all.

This is why always try to make as much profit as you can by DCA and holding, not trying to trade it quickly. When you do that, the risk factor of bitcoin is almost nothing, outside of gold there is nothing that is as safe as bitcoin investment in the world, even if you find any dangers in it then at least we can say that there are other assets which are worse.

[Cookdata]

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.

The fascinating days of crypto aren't here any more, I don't think anyone will want to get into crypto because of those hypes anymore. Many lessons were learnt during the 2021/22 when market fell and many people are yet to recover from those losses, the only coin that recovered from there is Bitcoin, this is why Bitcoin remain the true coin to recommend for anyone but do people really want to buy Bitcoin? They are all preferred that coin that will double quickly which are the altcoins.

I have joined the gangs of I don't do Bitcoin anymore, ghat way of lying is the best way I can save myself the stress of explaining myself to them because when you tell them not to buy altcoins and but Bitcoin, they will see you like you don't know what yiua are doing. I have a guy that bought meme after consulting me for advice, I told him not to buy and he went in my absent to meet another guy and he was rugged but he didn't tell me, I heard it from another person and I acted like nothing happened because that wasn't on me.

[Z-tight]

BTC is volatile and risky, but especially in the short term, in the long run there is a very high chance of your making returns. I usually recommend that weak hands and impatient people stay away from BTC, if you are buying BTC with money that you'd need only a few weeks later, then it may be better if you hadn't bought it.

However, some people many not be ready for the risks associated with BTC, and such people can buy assets like gold, it is stable and it can retain its value during the 'bad times'.

[Obari]

You’ve done well op and not many people especially from my region would want to boldly speak this truth to aspiring holders and at the end of the day, getting them mislead and at the long run, they might even be blamed for any losses.
A lot of people that introduce others to bitcoin and cryptocurrency in general don’t even have the right knowledge themselves and end up leading their mentees astray because if they have the right knowledge, they would have to know that, the first thing to tell anyone about bitcoin and cryptocurrency is that, it is volatile.

[Finestream]

Bitcoin is certainly risky, no doubt with that, but if you know how to manage the risk, you will gain advantage on bitcoin. However, for those who want to invest but are afraid to take the risk, that's normal, DYOR first and make thorough study until you will clearly understand how to invest in bitcoin safely without making yourself too much at loss in the end.

[tottong]

Bitcoin is certainly risky, no doubt with that, but if you know how to manage the risk, you will gain advantage on bitcoin. However, for those who want to invest but are afraid to take the risk, that's normal, DYOR first and make thorough study until you will clearly understand how to invest in bitcoin safely without making yourself too much at loss in the end.

Because bitcoin has a slightly greater level of risk when invested, people must have the ability to minimize.
Risk can be controlled by not panic in investing because Bitcoin has a recurring cycle and if followed well then someone can minimize it.
If you are too afraid of risk, investing in crypto, especially bitcoin is not suitable to run because there will be many challenges that they will get after being in investment.

But if we pay attention further wherever we are risk can never be separated just like that and what people need to do think of how to minimize.
When the knowledge possessed is good, the risk will slowly be minimized because there is actually nothing completely free of risk wherever we are.

[CryptoBuds]

While I do agree that bitcoin has some sides that I would like to fix (energy efficiency, high transaction costs, low speed of transactions), I would not say that it is risky.

Even thousands of years old assets like gold or real estate have risks, so saying that virtual assets like bitcoin are risk-free is just baseless exaggeration and just personal thinking.

Bitcoin is not even legal worldwide, many countries still do not recognize it. Capitalization is just over 1 trillion and is too small to say it is mature enough not to collapse. Not to mention the development of technology is happening so fast, there is no guarantee that it will not be decoded or broken in the future. Overall, the potential risks of bitcoin are still huge and that is why many governments are in no rush to adopt it. It needs more time to prove that it is truly useful and worth our trust in the long run.

It took gold thousands of years to build the reputation and trust it has today, so it's naive to think that an asset that's only 15 years old is risk-free. We are bitcoin investors but let's be realistic, don't exaggerate or be too blind.

[reagansimms]

He only knows that Bitcoin is constantly fluctuating and risky, but that is just a basic understanding for someone who wants to invest in Bitcoin. A broader explanation is needed to increase understanding of Bitcoin, its fluctuating price as a driving force for making profits. Bitcoin prices are not always at their lowest or highest point, if he is able to take advantage of this condition, there is very little risk that will come to him.

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.

Just explain what needs to be explained without any engineering, if your friend is interested in Bitcoin investment, he will ask you to teach him further. There are certain limits that should not be crossed when trying to teach someone so that you are not blamed when the investment value starts to decrease.

[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.

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.

Relative to Bitcoin, of course, but that's a mere illustration that should show the FACTS, not the actual graphs themselves. The person who made that illustration should draw the line for Gold slightly going upwards if you ask me. It may look like that I'm nit-picking, but we need to show the FACTS.

Plus for the fiat lines, I definitely and FULLY agree. They're worthless worse than shitcoins, centralized and controlled by the Cabal of the usury-loving Central Banking scam.

[Zigabel]

I wouldn't want to sound defensive for bitcoin but i would rather say bitcoin is just a better risk than some other investment risk, this is because with bitcoin, there's this level of assurance as to the chance you will be profitable if only you are committed to it is very high than with other where it may look like a blind risk, with bitcoin you just need so much of patience and you will be certain you are going to make some good profits off your capital at the end of the day.

Patience is what most investors do lack at times and that has not done so much for those who lack it but for those who do especially with bitcoin, they usually get the most of it and definitely end up making the kind of profits that most investors had wish to get of bitcoin.

[Septex]

Currently, the price of Bitcoin is at 59 thousand dollars And looking at the past history of Bitcoin shows that the value of Bitcoin was still a bit up but currently its value is down a bit.  But after reviewing everything, I don't think investing in Bitcoin is risky. Because if long term investment is made here it will eventually rise and there is a possibility of profit through it. As we can see at the beginning of 2023 the price of bitcoin was very low now in 2024 the price of bitcoin has increased comparatively and its stability is much higher than before. So I personally think investing in Bitcoin is comparatively less risky and profitable

[Mame89]

Bitcoin is certainly risky, no doubt with that, but if you know how to manage the risk, you will gain advantage on bitcoin. However, for those who want to invest but are afraid to take the risk, that's normal, DYOR first and make thorough study until you will clearly understand how to invest in bitcoin safely without making yourself too much at loss in the end.

Bitcoin if you do not have a good understanding is certainly very risky, especially if you invest without patience and do not have the right basics of wallet security, of course it will make you lose. In addition, when you do not have enough knowledge when there is a significant price fluctuation, it will make you panic. Because the high increase in the price of bitcoin is followed by a high decline. Therefore, bitcoin is often referred to as an asset with high risk and high profit.

Another risk is that cybercrime is also a risk in bitcoin because of course the increase in the quality of digital currency will definitely be followed by digital currency criminals. Maybe another risk if there is an error during delivery because if there is a delivery of our assets cannot be returned. Maybe things like this should also be taught to friends so that they know that Bitcoin investment is not just buying but must be able to minimize the existing risks.

[OgNasty]

Buying Bitcoin is risky.  Not owning Bitcoin is risky.  Choose your risky...

As always and with everything, diversity is important.  I think that Bitcoin, as risky as it may be, still has a place in everyone's portfolio. Perhaps even a larger place in the portfolio's of the rich who wish to protect their assets.  In a time when money can be printed out of thin air, and most people devote their entire lives to careers in hopes of obtaining enough money to live without worrying about it.  Bitcoin is a clear answer to many worries and especially for those without investment experience or retirement portfolios.

[Wakate]

BTC is volatile and risky, but especially in the short term, in the long run there is a very high chance of your making returns. I usually recommend that weak hands and impatient people stay away from BTC, if you are buying BTC with money that you'd need only a few weeks later, then it may be better if you hadn't bought it.

However, some people many not be ready for the risks associated with BTC, and such people can buy assets like gold, it is stable and it can retain its value during the 'bad times'.

It is good we keep informing anyone that want to invest in cryptocurrency of the risk so that they would know how to go about it without falling victim to scammers. There are so many time we ought to learn about the market that is why newbies need to be patient and learn thoroughly about the crypto market and how to keep their crypto portfolio safe from hackers or scammers. So many of us had made mistakes in the past that caused us huge fortune lost and that is why others needs to learn and not wait for when they would become a victim too. We all need to stay safe and keep our crypto portfolio safe from intruders.

[Dzwaafu11]

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. Lying to people about bitcoin will not spoil only your image, but the whole crypto currency will turn into a scam for them because they have already fed up with lies, and after practicing they don't get any positive return. So if another person goes to tell them they won't believe regardless of how knowledgeable you may think you are about crypto because of their first experience, so my own is two things.

Advice and lying is not good to advise someone to invest or get themselves in anything crypto currency that will require them to use money; rather, teaching them is the best way to get people to adopt and the teaching should be both positive and negative side of it to avoid being blamed at the end of the day. for the fact that if anything happens, you will be the one to blame, even if they are the ones that make mistakes they won't remember. That is why bringing someone to this space has its own risk separate.

[Rockstarguy]

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.

That is why people needs to understand the volatility of the market first before making decisions of going into the market to invest. It will be very risky for someone who does not have understanding of crypto to invest because it is possible for people of no knowledge to sell out of fear when the market is going dip.  The volatility in cryptocurrency is very important and it is what makes crypto to be valuable and people needs to understand how the volatility works so that it can be of good advantage to make profit .
Cryptocurrency is very risky for those who don't have knowledge about it and it is not advisable for people who have no understanding of it to think of investing in it.

[kawetsriyanto]

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.

In my opinion, your friend does not think Bitcoin has a bad reputation. He stated the truth about Bitcoin. There is nothing wrong with that, it is true that investing in Bitcoin is risky and its value is unstable. But you need to tell your friend that there is no investment that has no risk, right? Even other investment can be riskier than Bitcoin. Show him how the price growth of Bitcoin since it is created for the first time until now. When you showed it, I think your friend will realize the potential of Bitcoin. I'm very sure that your friend will conclude himself that Bitcoin has a low risk for holding a long term. Regarding the price, tell him that the instability of the price is the chance of gaining higher profits. If the price is stable, how we can get high profits? It there is no low price and no high price, it won't be an investment but it is only a saving. We are investing in Bitcoin, we aren't saving. The point is that we must know the cycle of Bitcoin price growth every 4 years. Advice him to learn it first, to know how the instability of Bitcoin price isn't a bad thing but it is a good thing for investors.

References:
1. https://bitcoinmagazine.com/guides/bitcoin-price-history
2. https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp