Bitcoin Is risky... But living on fiat is riskier

[Awaklara]

When your money is just sitting in fiat and not earning anything, it's not really working for you. As an investor, your capital should be generating returns rather than remaining idle and losing value to inflation over time.

Even when banks offer interest on our money that stays in the bank, its value will never cover the depreciation of fiat currency. For those who are familiar with Bitcoin, investing there is very profitable. But we know, we actually cannot yet be completely free from the use of fiat. The only way currently that many Bitcoin holders can do is to keep more Bitcoin than fiat in the bank.

[impulse709]

When your money is just sitting in fiat and not earning anything, it's not really working for you. As an investor, your capital should be generating returns rather than remaining idle and losing value to inflation over time.

Even when banks offer interest on our money that stays in the bank, its value will never cover the depreciation of fiat currency. For those who are familiar with Bitcoin, investing there is very profitable. But we know, we actually cannot yet be completely free from the use of fiat. The only way currently that many Bitcoin holders can do is to keep more Bitcoin than fiat in the bank.

I understand that the only thing people should have in their long-term investments are fiat. Since over time. Inflation eat away at their purchasing power. But I also believe that there should be a balance between the comparison. Bitcoin's potential for long-term growth is great. But it also has a high level of volatility that may not be suitable for everyone. A combination of a few assets can be a more prudent investment for most people as compared to investing entirely on one side. While many investors have found Bitcoin to be a great store of value. There is still a need for fiat to carry out day-to-day activities. For bills and for emergencies. But both are important to a healthy financial plan.

[Filicius]

When your money is just sitting in fiat and not earning anything, it's not really working for you. As an investor, your capital should be generating returns rather than remaining idle and losing value to inflation over time.

Even when banks offer interest on our money that stays in the bank, its value will never cover the depreciation of fiat currency. For those who are familiar with Bitcoin, investing there is very profitable. But we know, we actually cannot yet be completely free from the use of fiat. The only way currently that many Bitcoin holders can do is to keep more Bitcoin than fiat in the bank.

I understand that the only thing people should have in their long-term investments are fiat. Since over time. Inflation eat away at their purchasing power. But I also believe that there should be a balance between the comparison. Bitcoin's potential for long-term growth is great. But it also has a high level of volatility that may not be suitable for everyone. A combination of a few assets can be a more prudent investment for most people as compared to investing entirely on one side. While many investors have found Bitcoin to be a great store of value. There is still a need for fiat to carry out day-to-day activities. For bills and for emergencies. But both are important to a healthy financial plan.

When you talk about a combination of a few assets, do you mean altcoins or are you referring to fiat+Bitcoin+[gold, securities, real estate...]? I am not sure about the safety of the diversification when it means selling a part of your Bitcoin to alts, that's why I'm asking.

[Bitcoin_people]

What's your opinion. Do you think people reject Bitcoin because it is truly too risky... or because its risks are easier to see than the risks of fiat?

I think Bitcoin is less risky than fiat currency because the value of a country's local currency often decreases. Fiat currency has a lot of inflation due to which people face losses if they hold their money. Moreover, the government of a country can print enough money if they want and the value of the money can decrease, which can cause a lot of financial losses. But when investing in Bitcoin, although it is risky, it is less than fiat currency. Bitcoin cannot be increased at will, it has a limited supply, due to which its demand will increase as time goes by and it will become valuable. So I think Bitcoin is the best medium of investment and it has low risk but when holding fiat currency in the bank, it will be risky because of high inflation.

[henmark]

Obviously, we can't keep too much in fiat, which means you have to measure how you're going to live in the next few months, such as your monthly expenses and also the emergency fund you have set aside to keep your life safe, to be honest, price fluctuations are also sometimes a problem if you need quick money to fix a problem that happened in your life.
1. Know your monthly expenses
2. Set up an emergency fund
It's all in the type of fiat should not be in investment assets, after having both of that you can be quite calm in investing in bitcoin from the results of your income.

Even rich people who have fiat but do not have any bitcoin at all, do not keep their money in fiat itself. They just buy investments with it. It could be real estate, it could be gold, ti could be stocks, bonds, whatever you can think of.

You are not going to see any person with 1 billion dollars in cash at some bank, it could be as liquid as it gets in some bonds if needed be, but never in cash, like they are not going to put up 1 billion dollars in savings for a 3-5% return or something. This is why nobody who has any decent amount of money keeps it as fiat, they all put it in some investment. The difference is, if you have 100 dollars, then investing in anything at fiat makes no sense, in crypto? It is great.

[Akbarkoe]

Even rich people who have fiat but do not have any bitcoin at all, do not keep their money in fiat itself. They just buy investments with it. It could be real estate, it could be gold, ti could be stocks, bonds, whatever you can think of.

You are not going to see any person with 1 billion dollars in cash at some bank, it could be as liquid as it gets in some bonds if needed be, but never in cash, like they are not going to put up 1 billion dollars in savings for a 3-5% return or something. This is why nobody who has any decent amount of money keeps it as fiat, they all put it in some investment. The difference is, if you have 100 dollars, then investing in anything at fiat makes no sense, in crypto? It is great.

They have their own way of making a profit although not always in bitcoin, although I doubt it today, I think the billionaires must have bitcoin only the amount is not large as in other investments, bitcoin ownership can be confidential.
 
You may not know that there are a lot of money games to get big profits even through banking, such as you buy the money into an asset, then you pledge it to a bank that has a low interest rate to get money like for example a Japanese bank and you deposit the guaranteed money into a bank that has a high interest rate like a bank in the US, you can take the difference to pay and make a profit there.

If I only have $100, I would rather invest in myself, enrich my knowledge or improve my skills to get more money and then talk about investment and bitcoin for today can be the main choice.