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

[Antonixx]

One of the most common argument against Bitcoin is that it is “too risky.” some point to volatility, price drops, and uncertainty as reasons to stay away... And decide keeping their money in cash and traditional savings feels safer...

But what I keep asking is, What is "Safe" being compared to Actually? Because watching inflation quietly destroy your purchasing power every single year is also risk. Depending entirely on a salary that buys less each year is also risky. Trusting a system where your money can be restricted, frozen, or quietly devalued is also risk too.

The differnce is that Bitcoin’s risk is loud, while fiat’s risk is silent. One scares people because it moves fast. The others steals slowly, so people get used to it and call it normal.

Sometimes I think people are not choosing safety... they are choosing familiar risk over unfamiliar risk, and honestly familiarity does feels safer in reality.

on the other hand it is completely logical and human to be in one of these categories. But it is a matter of choice and I understand not everyone has it in them to venture unfamiliar routes, in the end one cannot exist without the other as it is an epitome of balance.

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?

[_act_]

The differnce is that Bitcoin’s risk is loud, while fiat’s risk is silent. One scares people because it moves fast. The others steals slowly, so people get used to it and call it normal.

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?

What I see is very different. What I see is that bitcoin is volatile, which makes some people to be thinking that it is risky, but it is not risky if you can continue to hold your bitcoin.

Fat will look like it is stable, the government and central banks make it look like that, but they gradually eat peoples money slowly in a way the people may not suspect. In some countries, it become very obvious in extreme inflation, but in some countries, it is gradually.

Be it any, over time, people will know how bitcoin is better and not inflationary. If you know how to invest in bitcoin, it is very safe, but fiat is risky.

[(BTC)]

The differnce is that Bitcoin’s risk is loud, while fiat’s risk is silent.

Nah, bro. That printer is definitely loud as hell.

There are still many individuals, unfortunately, captured by this mentality of, "Ohh, I only have a small portion of my portfolio allocated to bitcoin/crypto.". Meanwhile, institutions are stacking their pockets in the background.

[Vaskiy]

The inflation stays hidden, only if we make comparative study of our spending, we were able to understand what is happening with fiat. The purchasing power of people is much affected. Yesterday a person has spent $10 on fuel, and today it has increased to $11. What the common people does, just a $1 increase and moves on adopting himself. The $1 increase adds another $10 increase in the days spending on different things as fuel is the major one connected with transportation. When transportation cost increases, automatically everything gets some hike in price. We never think of it, what we have in mind is just the $1 increase. When people start realizing it, they'll believe bitcoin as the best one than seeing it risky than fiat.

[coinlary]

Rejection is always about whateverthey consider as "risk". If you ask a lot of non investors, then it will be about "risk" or belief that  Bitcoin is too expensive for them to buy.


The “risk” part for them is  actually understandable, and it tends to  always affect short term investors the most . Their aim is completely different, and when  they miscalculate (which they always do ), they get trapped and are forced to withdraw early.

To them, it will always be risky because they couldn’t get what they wanted  easily.

[Alphakilo]

To be frank, everything that revolves around money and investment is quite risky, but it depends on the kind of risk you can manage and that is what makes the difference between Bitcoin and fiat.
The risk of holding Bitcoin is there but if compared to the risk of holding fiat, we see the need of fiat for everyday expenses and since everyone uses it, it is quite uncommon to witness wrench attacks of large sums like what mostly happens to Bitcoin holders in some regions.

Besides that, Bitcoin thrives on volatility and speculation and that is something that is different for fiat because it is more about exchange rates, interest rates, inflation and CBN policies affecting its price and value overtime.

The edge Bitcoin has over our local fiat currency is the potential it has to appreciate in value overtime. Accumulation of it in small quantities over a decade bears more worth than accumulation of fiat currency over the next decade and that's the distinction along with other properties of sovereignty and self custody that makes Bitcoin more of a value asset with a risk that's better than the risk involved in the value of fiat currency being accumulated.

[Finestream]

Yes, the risk involved in bitcoin is high and loud, but once you get to learn proper risk management and strict discipline, eventually that risk could eventually turn into a tool for profits. And those who who do not dare to take the risk with bitcoin will never experience real success and profits.

However, fiat on the other hand moves with a silent risk. But the risk involved does not get you nowhere positive in the long run. You just get used to it and think that's normal, when in reality everyone got a choice to prioritize bitcoin over fiat, and take risk to experience financial freedom in the future.

[monetizator4]

Fiat's everyday use makes it seem more stable, but its hidden inflation can be just as damaging over time. Bitcoin’s volatility is tough to stomach, but its deflationary nature could provide real value in the long run. It all comes down to what kind of risk you're willing and able to manage

[Johnlomape]

One of the most common argument against Bitcoin is that it is “too risky.” some point to volatility, price drops, and uncertainty as reasons to stay away... And decide keeping their money in cash and traditional savings feels safer...

Only if you understand what volatility means to people that have sold their Bitcoin because of fear that the worth of their investments.coikf shrink to value they may not be ready to take or admit. There are different reasons why people choose not to invest in Bitcoin, maybe until they gain adequate knowledge about what Bitcoin is and what it could do if you don't understand the market progression. Those who think it's risky don't understand what Bitcoin is all about. You know that ignorance can make people behave in certain way that could look unusual to many people.

[Questat]

Both have their own individual risk. Fiat is risky because its value relies entirely on public trust and government management. And since every government is vulnerable to the risk of inflation, loss of trust, and political and economic mismanagement, the value of fiat or currency will automatically be rapidly reduced.

Now bitcoin is also risky due to its high volatility. But if you understand the whole point of volatility, and its asset factor more than what people think as threat factor, the risk will be highly manageable. People will only feel bitcoin is risky if they don't know how to manage or lessen the risk, but if they are smart-wise, that risk will turn out to be more of an asset.

[stadus]

To answer which is more risky, I think that comes with various answers depending on your time horizon (long term or short term) and the type of risk you are measuring.

Bitcoin is more risky on a short-term basis because of high volatility, irreversible errors and regulatory uncertainty. While fiat is more risky on a long-term basis due to its inflation risk, centralized seizures and freezes, and geopolitical and systemic failure.

To combat and solve the risk, hold bitcoin for long-term and hold fiat for short term. That way, their risks will not be totally eliminated but can be managed or reduced.

[Maslate]

Given the fact that fiat is tied to the centralized government, so whatever happens to the government or state will reflect to its currency's value. Since government is at high risk with uncontrollable inflation, thus leading to minimize our purchasing power and reduced the value of our fiat. And the worst thing is, those who are saving up fiat, their savings will only be eaten by inflation for the longest time possible.

Still, bitcoin is risky because of its decentralized nature and price volatility. But if you don't spend or sell your bitcoin when the price is low, then that won't put you at a bigger risk. It will only be risky if you don't know how to deal with it.

[rat03gopoh]

The problem is about savings, isn't it? You're making it too general in the title. Because in my country, Bitcoin is too risky to spend on goods.

Regardless of inflation, people also have the ability to obtain higher value for their goods and services. And what they need to address this problem is a rapid cycle between income and expenses. It's not that they're unaware of declining purchasing power; they also have a way to preserve their wealth long-term. By default, local banks also give a certain interest rate on every deposit, although it's not as high as the deposit products specifically offered.

[BitMaxz]

You're comparing Bitcoin to fiat currency, which are not the same things.
I understand the silent risk, but people perceive it differently. We know you'll notice the silent risk in the long run because it's more volatile than crypto or Bitcoin; the risk remains with you and the market. No one knows what will happen with this, as compared to fiat, which can be predicted.
Because you don't know what the future holds for BTC, it is riskier; additionally, it is dependent on how you protect your wallet, and banks pay you interest, and they only freeze your account if they discover something suspicious about it, which is uncommon when compared to Bitcoin. If you don't know how to protect it, exposing it online makes it much more vulnerable to online attacks.

Both of them carry some risk, but Bitcoin is still riskier than using fiat. Even if we know Bitcoin, I still can't bring newbies or invite someone to invest in Bitcoin. I already tried that before, and they blame me for what they lose because Bitcoin can be aggressive when dumping. So I better suggest they should be the ones to discover what Bitcoin is and the history that is forcing them to believe me since they are affected by FUDs; their emotion is not pure; they can't hold it but are afraid to lose everything.

So Bitcoin still noticeable risk compared to Fiat.

[JiiBs]

Fiat's everyday use makes it seem more stable, but its hidden inflation can be just as damaging over time. Bitcoin’s volatility is tough to stomach, but its deflationary nature could provide real value in the long run. It all comes down to what kind of risk you're willing and able to manage

People are okay with sticking to the known than venturing into the unknown which can come with a twist that they’ve got no idea of.

I don’t blame those whom has become so accustomed to fiat and would rather not have anything else substitute for it at any point in course of handling financial transactions. It’s what they understand and what they can make amends to in any eventuality.

Although, it would have made more sense or help them more to identify these other opportunities so, they could always balance the scale and see which would prove useful in certain situations.

[Rengga Jati]

It's quite difficult to explain to people who always oppose this, that the risks can be managed. So we can get more benefits than risks. If we're willing to learn and understand how, many people have already implemented and implemented it. Because everything, not just Bitcoin, has risks.

Yes, this is precisely the danger, as is happening in my country:
- The fiat exchange rate has plummeted, causing inflation, either gradually or drastically, while the average minimum wage is very difficult to raise.
- Storing fiat in deposits or at banks is very high risk. There have been many cases of money theft from banks due to negligence, criminal acts by bank employees, or other reasons that are difficult to accept because money in bank accounts suddenly disappears.
- Complicated withdrawals when trying to withdraw our own money from the bank, for example, in large amounts.
- Complicated regulations and KYC

So, when it comes to risks, yes, both have their own. However, if Bitcoin also offers extraordinary benefits and we can manage the risks, why not? But again, it's hard to counter the haters.

[hd49728]

Yes, this is precisely the danger, as is happening in my country:
- The fiat exchange rate has plummeted, causing inflation, either gradually or drastically, while the average minimum wage is very difficult to raise.
- Storing fiat in deposits or at banks is very high risk. There have been many cases of money theft from banks due to negligence, criminal acts by bank employees, or other reasons that are difficult to accept because money in bank accounts suddenly disappears.
- Complicated withdrawals when trying to withdraw our own money from the bank, for example, in large amounts.
- Complicated regulations and KYC

So, when it comes to risks, yes, both have their own. However, if Bitcoin also offers extraordinary benefits and we can manage the risks, why not? But again, it's hard to counter the haters.

If even a strong fiat currency like the US. dollar can not avoid inflationary effects that cause the declining purchasing power of the US. dollar over time. It's considerably harder for fiat currencies from small nations, with smaller economy and less power to maintain purchasing power of their national fiat currencies.

In fact Bitcoin has its purchasing power increasing with years, and the Satoshi per dollar can show it.
https://charts.bitbo.io/satoshi-per-dollar/

In life, there are always risks but between Bitcoin and fiat currencies, Bitcoin can help Bitcoin holders avoiding inflationary issues of fiat currencies, while build up their wealth over time together with Bitcoin value and price growth.

[Joy- maker]

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 would say things differently, people are not only rejecting bitcoin because it is too risky, beside no investment is completely risky free.  Most people chose not to invest in bitcoin because they are not familiar with the system, so they would rather stick to the system they already know.

There are also people who lack bitcoin knowledge and understanding, they do not really know how bitcoin works and they are not even interested in learning.  These are people who have concluded that nothing good can come out of bitcoin and blockchain technology.

[MusaPk]

I would say things differently, people are not only rejecting bitcoin because it is too risky, beside no investment is completely risky free.  Most people chose not to invest in bitcoin because they are not familiar with the system, so they would rather stick to the system they already know.

There are also people who lack bitcoin knowledge and understanding, they do not really know how bitcoin works and they are not even interested in learning.  These are people who have concluded that nothing good can come out of bitcoin and blockchain technology.

If we look at successful businessmen or entrepreneurs around us then one thing we find them in common is that they all are willing to take risks. The volatile price of Bitcoin is the reason people fear to invest in it but this is also the reason one can increase his wealth. There is no point in keeping your money in fiat because it loses its worth over period of time. We can decrease risk involved in Bitcoin investment by following strategies like DCA.

[icebar]

People are afraid to invest in Bitcoin because Bitcoin is more volatile. They think that the value of Bitcoin can decrease at any time, but if we try to understand the matter in the context of reality, then there is fear not only in Bitcoin but also in fiat currency. However, what happens in the case of Bitcoin is that when the value of Bitcoin decreases, people discuss it a lot, but when the value of fiat currency decreases, people try to accept it as normal. Again, when the price of Bitcoin increases, there is a lot of excitement among investors, but it does not come to the fore much, but when it falls, no one is left to know. If we consider it on a fair basis, then Bitcoin is definitely the best. However, it is not that Bitcoin will take the place of fiat currency. The value of money in both fiat and Bitcoin can decrease, so we should not blame only Bitcoin.