Bitcoin is risky

[kawetsriyanto]

Plus it's not merely about the length of holding, or about the time-preference. It's also about Bitcoin as new technilogy and its potential to change the world by leading a new surge in a new kind of asset class. The invention of Bitcoin might be something parallel to the invention of the printing press, radio, the telephone, and the internet which changed the world in their own ways, giving new paths of possibilities.

Exactly. If we are talking about Bitcoin, we don't only focus on holding or investing. We also should realize about the potential of Bitcoin as a new technology. Even Satoshi didn't make Bitcoin for investment tool, he made it for an alternative way of digital currency. Sure, we are here to support the change of the world through Bitcoin/crypto. Since there is a country that already makes it as legal tender, it will be easier to achieve the Bitcoin goal. I got your point that it is not only about investment purpose but it is also about Bitcoin adoption in every field of life.

It might be "too risky", but it's a risk that should be taken that would move us forward in my personal opinion.

If we want to succeed, we must deal with the risk. Investing in Bitcoin with high volatility is no doubt quite risky. But if we consider the price growth in the long run, we must be aware that Bitcoin isn't too risky as people think.  

I fear that if bitcoins start to be stored, the daily transactions of bitcoins will be reduced to nothing and everyone will save their bitcoins. People seem to be drifting away from the real purpose of Bitcoin's creation.

Is it possible that every one only stores it and leads to no Bitcoin transaction in the exchanges? 
I think it is unlikely to happen. There will be always Bitcoin transactions in the exchanges, no every single Bitcoiner keeps it as a long term holding.

[Sonia_123]

He was confused at first because he heard that it was unstable and risky.

Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable.

You can enlighten him more by telling him that fortunately, with time, Bitcoin has less volatile price than past years and previous market cycles.

Correction drawdowns in Bull markets become smaller with time.
https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59

Judging from this graph , Bitcoin investment profit is a steady process and that is why it is adviceable to invest in a long-term not short,the growth from the previous years is visible, fruitful and there have been no year it has dropped below the instead increasing, therefore to me its risk is not as compared to other crypto,since the risk are being recovered.

[tottong]

It might be "too risky", but it's a risk that should be taken that would move us forward in my personal opinion.

If we want to succeed, we must deal with the risk. Investing in Bitcoin with high volatility is no doubt quite risky. But if we consider the price growth in the long run, we must be aware that Bitcoin isn't too risky as people think.  

Without taking risks we will never know the level of success we will run, but that does not mean that the risk is not calculated at the beginning.
Bitcoin volatility is indeed quite risky to lose, but this volatility can also provide a commensurate return if the investment is carried out correctly.
When it comes to the long term, the resulting risk will not affect anything if people understand the process of bitcoin itself.

I fear that if bitcoins start to be stored, the daily transactions of bitcoins will be reduced to nothing and everyone will save their bitcoins. People seem to be drifting away from the real purpose of Bitcoin's creation.

Is it possible that every one only stores it and leads to no Bitcoin transaction in the exchanges? 
I think it is unlikely to happen. There will be always Bitcoin transactions in the exchanges, no every single Bitcoiner keeps it as a long term holding.

There are hundreds or even thousands of people involved in bitcoin so it is impossible for transactions on the exchange not to run.
If not, the exchange will not operate properly because there is no balance between buying and selling, this is a simple thought of every product produced where the product must continue to run.
Moreover, not everyone does long-term holding because traders have a certain time period to engage in trading.

[EarnOnVictor]

He was confused at first because he heard that it was unstable and risky.

Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable.

You can enlighten him more by telling him that fortunately, with time, Bitcoin has less volatile price than past years and previous market cycles.

Correction drawdowns in Bull markets become smaller with time.
https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59

Judging from this graph , Bitcoin investment profit is a steady process and that is why it is adviceable to invest in a long-term not short,the growth from the previous years is visible, fruitful and there have been no year it has dropped below the instead increasing, therefore to me its risk is not as compared to other crypto,since the risk are being recovered.

You are wrong about the assessment of this graph but overall it's a progressive chart, only that it is not progressive all year the way you make it look. Now, the big question is whether or not Bitcoin will continue to be progressive, I predict a rollercoaster ride for it even if it will rise over time.

Bitcoin when it was low in price and has a low market cap is different from when the price is now high with over $1.2T market capitalization. No doubt that Bitcoin will continue to attract more investors where the economics of demand and supply will continue to play out but the pace will not be about doubling, tripling etc of the current price and market capitalisation as people believe. It took Bitcoin over a decade to achieve the current market cap, do you think Bitcoin will do a miracle to at least double that high liquidity?

We should not deceive ourselves, there will be some negative surprises and disappointment for sure especially if people have too much expectation on the coin.

[FinePoine0]

Bitcoin is always more bullish, you will notice that Bitcoin has been between $65k and $60k for a long time. But we see the Bitcoin halving cycle starting in 2025 as the Bitcoin peak bull run begins, and now is just the moment before the Bitcoin price spikes. So if you look at the current price of Bitcoin, you can definitely see the rules.  Because the price of Bitcoin will hit it's highest due to which current dumping is going on in the Bitcoin market this may be the last opportunity for investors to invest. So one should never despair seeing this bitcoin dumping as there is a bull market signal to follow.

[Wind_FURY]

Plus it's not merely about the length of holding, or about the time-preference. It's also about Bitcoin as new technilogy and its potential to change the world by leading a new surge in a new kind of asset class. The invention of Bitcoin might be something parallel to the invention of the printing press, radio, the telephone, and the internet which changed the world in their own ways, giving new paths of possibilities.

Exactly. If we are talking about Bitcoin, we don't only focus on holding or investing. We also should realize about the potential of Bitcoin as a new technology. Even Satoshi didn't make Bitcoin for investment tool, he made it for an alternative way of digital currency. Sure, we are here to support the change of the world through Bitcoin/crypto. Since there is a country that already makes it as legal tender, it will be easier to achieve the Bitcoin goal. I got your point that it is not only about investment purpose but it is also about Bitcoin adoption in every field of life.

But because Bitcoin is ground-breaking technology, HODLing it those units in the blockchain as an "investment" SHOULD BE an understandable side-effect. I believe those people who tell everyone that Bitcoin shouldn't be HODLed are merely saying that. They actually don't want to put some of their savings in Bitcoin, and watch its value grow? OK, the can save their salaries in fiat.

¯\_(ツ)_/¯

It might be "too risky", but it's a risk that should be taken that would move us forward in my personal opinion.

If we want to succeed, we must deal with the risk. Investing in Bitcoin with high volatility is no doubt quite risky. But if we consider the price growth in the long run, we must be aware that Bitcoin isn't too risky as people think.  

I fear that if bitcoins start to be stored, the daily transactions of bitcoins will be reduced to nothing and everyone will save their bitcoins. People seem to be drifting away from the real purpose of Bitcoin's creation.

Is it possible that every one only stores it and leads to no Bitcoin transaction in the exchanges? 
I think it is unlikely to happen. There will be always Bitcoin transactions in the exchanges, no every single Bitcoiner keeps it as a long term holding.

To the users who don't want to HODL Bitcoin because "it's not its real purpose", where do you store your savings? 🤔

[kawetsriyanto]

Without taking risks we will never know the level of success we will run, but that does not mean that the risk is not calculated at the beginning.
Bitcoin volatility is indeed quite risky to lose, but this volatility can also provide a commensurate return if the investment is carried out correctly.
When it comes to the long term, the resulting risk will not affect anything if people understand the process of bitcoin itself.

Even if we didn't do it, we can know the level of the risk through learning on some sources. There are many articles or videos that explaining the level of investment. However, it is impossible to succeed if we don't take the risks.

The volatility in Bitcon can be bad or good side in Bitcoin investment. It is bad because people may panic when the price drops significantly. People who don't understand it, they may decide selling for losses. But it can be good thing for the people who understand Bitcoin price cycle. It has a cycle that provide for the bullrun-bearish season. People can take advantage of its price volatility through those seasons.

There are hundreds or even thousands of people involved in bitcoin so it is impossible for transactions on the exchange not to run.
If not, the exchange will not operate properly because there is no balance between buying and selling, this is a simple thought of every product produced where the product must continue to run.

You're right. We have many people involved in Bitcoin. Some of them can be traders of Bitcoin, they are not holding but trading Bitcoin. The exchanges are made for them, for a place of trading. I'm very sure people don't only take advantage by holding Bitcoin but they also earn profits by trading the Bitcoin.

Moreover, not everyone does long-term holding because traders have a certain time period to engage in trading.

Yep. This is what I exactly stated in my previous post.

To the users who don't want to HODL Bitcoin because "it's not its real purpose", where do you store your savings? 🤔

Those people may have no purpose for savings in Bitcoin, they invest in Bitcoin. 
Most people will concern more on the possibility of earning money. Many people don't really care about the real purpose of Bitcoin. As long as they can earn money by holding or trading Bitcoin, they will keep doing it.

[tottong]

Even if we didn't do it, we can know the level of the risk through learning on some sources. There are many articles or videos that explaining the level of investment. However, it is impossible to succeed if we don't take the risks.

The volatility in Bitcon can be bad or good side in Bitcoin investment. It is bad because people may panic when the price drops significantly. People who don't understand it, they may decide selling for losses. But it can be good thing for the people who understand Bitcoin price cycle. It has a cycle that provide for the bullrun-bearish season. People can take advantage of its price volatility through those seasons.

The risk will be very proportional to knowledge so that someone can minimize it according to the resulting process.
Now there are many learning methods that we can learn and the openness of information in any media allows someone to learn to understand better.

Greed and panic are things that need to be avoided because they can endanger the investment made.
Volatility also has a positive side when people understand the journey of bitcoin because people can take advantage of the decline to make purchases and vice versa can take advantage of the perfect increase to generate appropriate returns.
If it can be utilized then we agree that Volatility will be something more positive in its journey.

You're right. We have many people involved in Bitcoin. Some of them can be traders of Bitcoin, they are not holding but trading Bitcoin. The exchanges are made for them, for a place of trading. I'm very sure people don't only take advantage by holding Bitcoin but they also earn profits by trading the Bitcoin.

If this does not happen then the exchange will not be able to develop as big as it is now because they need to match the trading pattern, both buying and selling.
Everyone has different investment steps and sometimes they hold and sometimes they sell. Although in our understanding who do not really understand trading consider holding bitcoin in the long term is a good choice.
But for those who understand trading and have the courage, trading is definitely the best way to make money.
It's just a different pattern and that's why there are many ways to make money in bitcoin and it really depends on how someone can take advantage of opportunities.

[jasonjm]

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.

Bitcoin investment is risky, and so is any other kind of investment (stocks, property, etc.). Bitcoin is highly volatile but will give you good ROI compared to any other investment. Bitcoin is giving people an ideal opportunity to get rich in the next few years; just trust the process and be patient. The long-term investment in Bitcoin is less riskier than trading and short-term profit earning. The best option for you is to refer to some sources of information explaining BTC's progress over the years compared to other classes of assets and let them decide for themselves.

[Wind_FURY]

To the users who don't want to HODL Bitcoin because "it's not its real purpose", where do you store your savings? 🤔

Those people may have no purpose for savings in Bitcoin, they invest in Bitcoin. 
Most people will concern more on the possibility of earning money. Many people don't really care about the real purpose of Bitcoin. As long as they can earn money by holding or trading Bitcoin, they will keep doing it.

You may call it "saving" or "investing", but it's not the HODLers' fault if Bitcoin's value is always going up, WHICH makes it a preferable Store Of Value, an asset for savings, or an "investment"? It's the fault of the Central Banking scheme, or scam, and their endless money-printing.

Plus it may not only be "saving" or "investing", it may also be called "hedging" against the legacy financial system.

¯\_(ツ)_/¯

[Smartvirus]

He was confused at first because he heard that it was unstable and risky.

Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable.

You can enlighten him more by telling him that fortunately, with time, Bitcoin has less volatile price than past years and previous market cycles.

Correction drawdowns in Bull markets become smaller with time.
https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59

This happens to be true eventually, people come into Bitcoin investment without having a definite plan on ground. At most, they just invest and start hoping to see a pump, take profit and get out. That’s the plan for most of these newbie investors (not referring to forum ranks).
The dumps, corrections, pullbacks is sadly not considers in this plan and when Bitcoin starts retracing even before it advances, you find them panicking. This is what leads to panic sales, no proper information and plan that covers the event of a bearish move.

However, the chart as presented in quote shows a relative consistency in growth through the times and the people that are at the top of the benefits are those that have been hodling Bitcoin through these times. That’s what newbie investors should be looking to do, DCA and hodl for a longer time.

[Wind_FURY]

He was confused at first because he heard that it was unstable and risky.

Crypto is volatile and even though Bitcoin has proved itself to continue to rise even after each dip, its price is still unstable.

You can enlighten him more by telling him that fortunately, with time, Bitcoin has less volatile price than past years and previous market cycles.

Correction drawdowns in Bull markets become smaller with time.
https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59

This happens to be true eventually, people come into Bitcoin investment without having a definite plan on ground. At most, they just invest and start hoping to see a pump, take profit and get out. That’s the plan for most of these newbie investors (not referring to forum ranks).

The dumps, corrections, pullbacks is sadly not considers in this plan and when Bitcoin starts retracing even before it advances, you find them panicking. This is what leads to panic sales, no proper information and plan that covers the event of a bearish move.

However, the chart as presented in quote shows a relative consistency in growth through the times and the people that are at the top of the benefits are those that have been hodling Bitcoin through these times. That’s what newbie investors should be looking to do, DCA and hodl for a longer time.

Or without the proper education and without a deeper understanding of what Bitcoin might be and its importance in a world where our money is controlled by the Cabal behind the Central Banks.

But many of those people who merely want to take profit and get out will definitely learn the hard way, and feel very VERY disappointed in 15 to 20 years, when they remember that what they merely had to do was accumulate and HODL.

[Peanutswar]

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.

People deceive by what they see on different social media platforms how do the influencers and crypto referral people engage with the cryptocurrency so they can earn a lot to their followers as their benefit at the same time, some of those say that they can earn here with free money with a casual gain income but once they joined already and get overcommitted and they make a mistake due to lack of knowledge now they will realize that once you join in crypto not all the time you've got earning is assured. All time and effort will be given just to make sure the spot with a good project and of course how does the market move if they want to make an investment. Frankly I always tell to those newbie have a bigger sight with the crypto it could be a life changing it depends how you handle in the situation if your asset.

[Smartvirus]

But many of those people who merely want to take profit and get out will definitely learn the hard way, and feel very VERY disappointed in 15 to 20 years, when they remember that what they merely had to do was accumulate and HODL.

Of course they will eventually. You know, when we talk 15 - 20years, it might seem so long a time well, it practically is. Judging from a point of your age at the time but the thing about investments is, it’s for a lifetime and you can actually transfer it to your kids or it’s form to what gives you comfort. I think that would be a more sustainable way to take profit no matter your age and the limitations it might come with.
The charts says it all, it’s doable and it’s profitable with time. You don’t get a better chance by procrastinating on investment or investing in the future. The time is actually now!

[Wind_FURY]

But many of those people who merely want to take profit and get out will definitely learn the hard way, and feel very VERY disappointed in 15 to 20 years, when they remember that what they merely had to do was accumulate and HODL.

Of course they will eventually. You know, when we talk 15 - 20years, it might seem so long a time well, it practically is. Judging from a point of your age at the time but the thing about investments is, it’s for a lifetime and you can actually transfer it to your kids or it’s form to what gives you comfort. I think that would be a more sustainable way to take profit no matter your age and the limitations it might come with.

The charts says it all, it’s doable and it’s profitable with time. You don’t get a better chance by procrastinating on investment or investing in the future. The time is actually now!

BUT, to put it in the HODLer's viewpoint - in that 15 to 20 years, compare the "active traders" and the mere HODLer, then check their wallets and actually SEE who has actually made life-changing profit and who has ZERO. I truly believe that there's a much higher probability for Bitcoin HODLers to make life-changing profit because MOST of those shitcoin blockchains will NOT continue to exist because of the design decisions made by their "developers". Bitcoin is designed to keep chugging along, producing block after block for DECADES.

[Yatsan]

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.

The discussion you had with your friend on Bitcoin and crypto is balanced, actually down-to-earth. You mention the volatility and risks around Bitcoin yet point out education and proper judgment; that indeed is a sign of information. It is good to be honest about the state of cryptocurrencies since indeed those are well-known for being volatile. You help paint a correct picture of investment by explaining risks and the need for rational decisions without being openly promotional about Bitcoin. This approach not only will help you meet your friend's expectations but also manifest that you are serious and situation-conscious. If interested, it opens up your willingness to read further and leads into an informed, thoughtful crypto conversation.

[Blitzboy]

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.

People deceive by what they see on different social media platforms how do the influencers and crypto referral people engage with the cryptocurrency so they can earn a lot to their followers as their benefit at the same time, some of those say that they can earn here with free money with a casual gain income but once they joined already and get overcommitted and they make a mistake due to lack of knowledge now they will realize that once you join in crypto not all the time you've got earning is assured. All time and effort will be given just to make sure the spot with a good project and of course how does the market move if they want to make an investment. Frankly I always tell to those newbie have a bigger sight with the crypto it could be a life changing it depends how you handle in the situation if your asset.

These influencers, they're painting a pretty picture, a life of luxury just a click away. But what they're not telling you is that crypto isnt some magical money tree. This is a turbulent, complicated market with lots of opportunity but also risk. Everybody wants to get rich. If you're serious about crypto, particularly Bitcoin, you must, nevertheless, see the wider picture and think bigger. Bitcoin is a defense against a dysfunctional financial system, not only another digital currency. It sees a distributed future.

Thus, avoid being sucked into the hype. Never pursue short gains. Do your research, understand the risks, and think long term. The crypto space moves quickly, hence only informed and ready will flourish. Remember, Bitcoin is the king. That is the real stuff. It is not about becoming wealthy over night, though. It's about realizing the future of money, the need of decentralization, and the revolution in development right before our eyes.

[Tmoonz]

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

Agreed. For those who do not know how to control their emotions, investing in Bitcoin is difficult. Bitcoin is volatile and risky. Many people invest in Bitcoin without having proper knowledge about it, educating themselves, and getting rich in a short time. As a result, they fall to the ground in a sudden shock and have a negative perception of Bitcoin. Needless to say, the safest investment in crypto right now is investing in Bitcoin, but we also have to be prepared to lose. Before investing in Bitcoin, we need to have a correct understanding of the Bitcoin risk, the market, and whether false positives can be discounted. And with that in mind, we risk as much as we can afford to lose.

Undoubtedly, Bitcoin investment can be risky but not as risky as most people may have it, it is always advisable to invest the amount of money that is more like a Left over or disposable income after taken care of our living expenses which is very important and essential, even though we can not completely rely on history which of course has given us so much guides, Bitcoin has proven to be a good coin with a solid foundation which is also meant to reduce the feeling of risk that should attached to it. However, one may not necessarily need to have much of the knowledge before getting involved in Bitcoin since you can learn more while already in the market, what is mostly important is to have the basic knowledge and learn more on your way up.

[Zoomic]

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.

People deceive by what they see on different social media platforms how do the influencers and crypto referral people engage with the cryptocurrency so they can earn a lot to their followers as their benefit at the same time, some of those say that they can earn here with free money with a casual gain income but once they joined already and get overcommitted and they make a mistake due to lack of knowledge now they will realize that once you join in crypto not all the time you've got earning is assured. All time and effort will be given just to make sure the spot with a good project and of course how does the market move if they want to make an investment. Frankly I always tell to those newbie have a bigger sight with the crypto it could be a life changing it depends how you handle in the situation if your asset.

These influencers, they're painting a pretty picture, a life of luxury just a click away. But what they're not telling you is that crypto isnt some magical money tree. This is a turbulent, complicated market with lots of opportunity but also risk. Everybody wants to get rich. If you're serious about crypto, particularly Bitcoin, you must, nevertheless, see the wider picture and think bigger. Bitcoin is a defense against a dysfunctional financial system, not only another digital currency. It sees a distributed future.

Thus, avoid being sucked into the hype. Never pursue short gains. Do your research, understand the risks, and think long term. The crypto space moves quickly, hence only informed and ready will flourish. Remember, Bitcoin is the king. That is the real stuff. It is not about becoming wealthy over night, though. It's about realizing the future of money, the need of decentralization, and the revolution in development right before our eyes.

Any adult who quickly invests in something he has little or no knowledge about should hold himself responsible for being too careless if the investment doesn't go as he expected it to be. What a serious minded person would do first is to make further findings to be sure they are putting their money in the right place. What if bitcoin investment is actually a scam? They wouldn't know because greed was influencing their decision at that point.

Bitcoin truly is not an investment for impatient people. Bitcoiners really do not need to prove to everyone that bitcoin is the best. Yea, it might be the best for an investor that knows how to use it and still be an entirely different thing to the other person. People should know everything they need to know about bitcoin before deciding to invest. A one sided testimony might not be helping matters.

[Farma]

Undoubtedly, Bitcoin investment can be risky but not as risky as most people may have it, it is always advisable to invest the amount of money that is more like a Left over or disposable income after taken care of our living expenses which is very important and essential, even though we can not completely rely on history which of course has given us so much guides, Bitcoin has proven to be a good coin with a solid foundation which is also meant to reduce the feeling of risk that should attached to it. However, one may not necessarily need to have much of the knowledge before getting involved in Bitcoin since you can learn more while already in the market, what is mostly important is to have the basic knowledge and learn more on your way up.

Every investment certainly has risks in it and to be able to avoid risks, good knowledge is needed about the investment that we will run, because for those who think Bitcoin has risks and they have never studied it, of course they will not dare to try it and invest funds that we can afford if we lose the funds, of course it will be very important because if we invest all the funds we have in an investment and we fail in the investment, of course we will not be able to survive the situation and I also agree with you, we cannot rely on past history that may not be repeated in the future. Having basic knowledge before deciding to invest is of course very important so that when we invest the funds we have, we can properly maintain the wallet key so that we can access the funds we have invested again and the rest we can learn while running the investment.