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

[macson]

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?

That's because they only look at short-term volatility, so they tend to view Bitcoin as a risky asset to buy. But they don't realize that if they buy Bitcoin and hold it for the long term, that volatility is no longer an issue, it's just part of a normal market cycle. It's not something to worry about, since as long as they don't sell, it's merely an unrealized loss. As the market grows, the value of their investment has the potential to increase over time.

That's why investing in Bitcoin can't be done in the short term, because if so, they will see Bitcoin as a risky asset and not worth investing in.

[mcdouglasx]

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?

Bitcoin is volatile, but I believe it's only a risk if you decide to invest in it in the short term. In the long term, I think it's a wise decision. I don't recommend short-term investing because it could be at one price today and 20,000 lower in a month. However, in the long term, meaning years, you're more likely to see real profits and minimize the risk of volatility.

On the other hand, people who don't adopt Bitcoin do so because it's something new, they don't understand much about it, they're afraid they won't be able to keep it secure, and it's a more difficult technology to use than traditional methods.

[DiMarxist]

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.

You are actually right just ask yourself how many people talk about the depreciation of any Fiat currency in real world. Only few people bother to even talk about it and when ever volatility hit hard and begins to affect the purchase power of a Fiat currency. Most people talk about the volatility of Bitcoin because they are happy seeing Bitcoin lose it value which they will use in discrediting Bitcoin. In essence those who talk about Bitcoin when ever the price drop are just Bitcoin haters who want to see Bitcoin fail so that they can talk more about it.

[GeorgeJohn]

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...

One thing we should know, theirs no investment that doesn't require risks...if bitcoin is too risky! Why is people still investing in bitcoin and also be making profit...This is one thing we should ask ourselves, especially people who think that bitcoin is the only one the risk is expensive...

The price of Bitcoin is rotational, and if you observed it, you will know that the price of Bitcoin is not constant, so of bitcoin changes in prices that  will scared some people away, that means they need more research about bitcoin...

For the aspects you emphasize, how safer is investing in traditional currency instead of bitcoin...Nobody will force anyone to invest in bitcoin, investing in a bitcoin it's a choice of an investor and besides a traditional currency doesn't appreciate, rather it depreciate in values..why bitcoin keeps appreciating also fluctuating in price.

[uchegod-21]

. In essence those who talk about Bitcoin when ever the price drop are just Bitcoin haters who want to see Bitcoin fail so that they can talk more about it.

They are not haters; they are just people who are not brave enough like you and me to invest in Bitcoin. So whenever they see the price of Bitcoin going down, they begin to criticize it and make lots of negative comments about Bitcoin just to make themselves feel good. We rarely see them when Bitcoin is bullish; they appear only when there is something negative to talk about.

In terms of long-term savings, Bitcoin is obviously the best choice. But if an individual just wants to save for the short term, then there is nothing wrong with deciding to save in fiat instead. I have long passed the stage where I try to convince people that saving in Bitcoin is better. People should do what they feel safe doing. It is good that people are now realizing that saving fiat for the long term is useless. Even if they are not investing in Bitcoin, they just know that keeping their money stuck in fiat for a very long time is so meaningless.

[Itz-prisigold]

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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 believe that another factor why many people are against Bitcoin is that fiat is very much part of our everyday life. People rely on something that they use on a regular basis,  and that's what fiat is. Meanwhile, Bitcoin is still something of a mystery to many people and unknown things always need extra effort to be understood.

When it comes to judging risk, most people are only considering short term price movements. When they see that Bitcoin price drop down to 20%,  they immediately see the danger. But they don't calculate how much fiat have lost in value unnoticed over the past 5-10 years as the cost of living has increased and inflation has taken a bite. That slower loss just seems normal because it's occurring gradually.

I don't think that Bitcoin has to be viewed as a guarantee solution to every financial problems either.  Both systems have their own weakness,  the key is to understand the risks and benefits of both, rather than believing one is completely safe.

[Luzin]

I don't think that Bitcoin has to be viewed as a guarantee solution to every financial problems either.  Both systems have their own weakness,  the key is to understand the risks and benefits of both, rather than believing one is completely safe.

Yes, I hope both can coexist. The country still provides space for crypto. So they can gain revenue through taxes and we can use it to store value. The reason is clear that we live under a government that has clear rules. If we break them, we will be punished. So we are under pressure. Therefore, fiat is the official currency used without limitation in transactions and we use it every day this cannot be done by Bitcoin, which has limitations. So understanding and using both is a very good idea. All of that carries risks and we can only try to eliminate them with certain steps.

[BitGoba]

When I first heard about Bitcoin, I thought it was some kind of scam. But once you begin studying Bitcoin seriously, you inevitably start studying the fiat system too what money is, how currency replaced real money, how banks were created, how the banking system works, and how fiat money actually functions.

And then you realize that the real scam is not Bitcoin. The real scam is the fiat system. Bitcoin is the exit from that system and from its Ponzi-like structure.

The fiat system and all fiat currencies are extremely risky. They lose value over time, melting like an ice cube under the summer sun, while most people are not even aware of how the system works.

Inflation can spiral out of control and become hyperinflation. You could wake up one day and find that even one million dollars no longer buys anything meaningful. That is what makes fiat currencies, including the dollar, extremely risky assets.You need to protect your wealth by storing it in something safer, such as Bitcoin or, at the very least, gold.

[Y3shot]

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.

I don't even see anything risky in bitcoin. The most important thing in bitcoin is your understanding, and why it seems to be risky is that people buy bitcoin without understanding it and expect much value from bitcoin in a short time. This is the problem they normally have with bitcoin.

It is wrong to say bitcoin is risky; the question one needs to ask when engaging in bitcoin is, "How much do I understand?" because the level of one's understanding matters a lot, and it is something you can't do without, whether investing in bitcoin or trading bitcoin. People prefer to keep their money in the bank without being worried, and over time it loses value, but the same person goes into bitcoin, desires to hold bitcoin for a short time, and expects profit. It doesn't work that way; there must be understanding.

[dwyane36]

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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 believe that another factor why many people are against Bitcoin is that fiat is very much part of our everyday life. People rely on something that they use on a regular basis,  and that's what fiat is. Meanwhile, Bitcoin is still something of a mystery to many people and unknown things always need extra effort to be understood.

When it comes to judging risk, most people are only considering short term price movements. When they see that Bitcoin price drop down to 20%,  they immediately see the danger. But they don't calculate how much fiat have lost in value unnoticed over the past 5-10 years as the cost of living has increased and inflation has taken a bite. That slower loss just seems normal because it's occurring gradually.

I don't think that Bitcoin has to be viewed as a guarantee solution to every financial problems either.  Both systems have their own weakness,  the key is to understand the risks and benefits of both, rather than believing one is completely safe.

For those who have been in the crypto industry for a long time, the advantages of BTC over any fiat currency are obvious. If there are those who oppose BTC, it is likely due to a lack of knowledge. Of course, everyone’s attitude toward fiat currency can vary greatly depending on which jurisdiction you live in, but in my case, my attitude toward fiat is rather negative because in my country, fiat currency is not associated with anything reliable or stable. Moreover, it is worth noting that during periods of global uncertainty and geopolitical tension, some fiat currencies become more volatile than BTC itself.

[aoluain]

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...

Well thats the thing, the biggest risk faced by anyone using FIAT is inflation, and its constant.
Most people look at rising prices and cannot realise that its really that the purchasing power
of their FIAT is getting weaker and weaker as inflation rises.

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?

Most people dont even see Bitcoin as an option for long term financial security, they cannot
see past the volatility 'issue'. Because of my point above they are just used to using FIAT
instead.

[Achalugo BTC]

I don't even see anything risky in bitcoin. The most important thing in bitcoin is your understanding, and why it seems to be risky is that people buy bitcoin without understanding it and expect much value from bitcoin in a short time. This is the problem they normally have with bitcoin.

It is wrong to say bitcoin is risky; the question one needs to ask when engaging in bitcoin is, "How much do I understand?" because the level of one's understanding matters a lot, and it is something you can't do without, whether investing in bitcoin or trading bitcoin. People prefer to keep their money in the bank without being worried, and over time it loses value, but the same person goes into bitcoin, desires to hold bitcoin for a short time, and expects profit. It doesn't work that way; there must be understanding.

You are completely right, investing in Bitcoin might no be an easy thing but its very beneficial for one, and one needs to have enough understanding to support themselves in this journey, and expecting to have profits in short term can make them to have wrong balance on their investment, as Bitcoin is best to invest in a long-term and also, its important for one to keep their emotions in check, so that they won't have to apply the understanding they got wrongly.

[AprilioMP]

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?

In my opinion, striking a balance between the two is the best approach. Both involve concrete risks that cannot be avoided, and when you think about risk, life itself is full of risks—but what matters is how we manage those risks.
Why is being in the middle the best approach? Because, for me, Bitcoin can be a good investment asset, while fiat currency is simply for transactions to meet my needs. From this, I interpret that Bitcoin is an alternative. I’m not saying I reject Bitcoin in favor of fiat. Conversely, there’s no way to reject fiat in favor of Bitcoin because both Bitcoin and fiat are things that fall within my needs as a human being.

[Son Of Blockchain (SOB)]

I don't even see anything risky in bitcoin. The most important thing in bitcoin is your understanding, and why it seems to be risky is that people buy bitcoin without understanding it and expect much value from bitcoin in a short time. This is the problem they normally have with bitcoin.

It is wrong to say bitcoin is risky; the question one needs to ask when engaging in bitcoin is, "How much do I understand?" because the level of one's understanding matters a lot, and it is something you can't do without, whether investing in bitcoin or trading bitcoin. People prefer to keep their money in the bank without being worried, and over time it loses value, but the same person goes into bitcoin, desires to hold bitcoin for a short time, and expects profit. It doesn't work that way; there must be understanding.

You are completely right, investing in Bitcoin might no be an easy thing but its very beneficial for one, and one needs to have enough understanding to support themselves in this journey, and expecting to have profits in short term can make them to have wrong balance on their investment, as Bitcoin is best to invest in a long-term and also, its important for one to keep their emotions in check, so that they won't have to apply the understanding they got wrongly.

It's risky but a risk that's worth it in the long-run for people that can hold asides that, anyone that's going into Bitcoin for taking profits in a,short period is really risking their money and could end up very disappointed because Bitcoin is becoming more volatile and tougher to predict what the price could be at different times.
 Which is it's more better to hold it longer, with that way it's less riskier and more profitable. Having fiat is not bad cause purchasing items in the market is mostly done with fiat currently but saving with Bitcoin is more better than saving with Fiat cause asides being more profitable it offers better security.

[OsaiEmma]

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?

As u mentioned earlier, it is an unfamiliar risk. The main issue is d ignorance, so many people are ignorant of what d risk really entails, there is no venture that doesn't have some level of risk attached to it, but these risk are manageable, even d drugs we take do have some negative side effects, but these side effects can be dismissed and resolved without needing any immediate interventions, that's just how life works.

I feel people are just too comfortable with what they have, the risk posed by the familiar have been managed well over time, so they feel is not as risky as it seems, so I feel proper education and exposure will really curtail d perceived risk in Bitcoin investment.

[BitBrainers]

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

This is the clearest way I have seen it put. Bitcoin drops 20% and it is front page news. The dollar loses 20% of its purchasing power over five years and nobody writes an article about it.

People are not choosing safety. They are choosing the risk they already understand over the risk they do not. That is a psychology problem, not a finance problem.

Started following Bitcoin in 2018. Took me a while to understand this distinction myself.

[Haunebu]

There are risks involved with literally any payment method out there, but people tend to choose FIAT over crypto primarily because of familiarity. They possess way more knowledge regarding FIAT when compared to crypto due to which they prioritise carefully.

Wise stuff though learning more about crypto would help them realise that the risks are pretty much equal when it comes to both overall. Luck plays a big part at the end of the day.

[Free Market Capitalist]

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?

My opinion: while fiat currency "risk" (or devaluation) is stable, and there are reliable ways to protect yourself against its risks, Bitcoin—in terms of its volatility—poses a higher risk. Add to that the fact that many people don’t bother to fully understand Bitcoin or its intrinsic properties, and that they don’t tend to have a long-term mindset, and it’s no surprise that they view Bitcoin as riskier than fiat currency.

That is, unless you live in a shithole with hyperinflation. If that’s the case, the risk associated with fiat currency is so high that many people turn to Bitcoin—far more than in countries with stable currencies.

[ultrloa]

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?

My opinion: while fiat currency "risk" (or devaluation) is stable, and there are reliable ways to protect yourself against its risks, Bitcoin—in terms of its volatility—poses a higher risk. Add to that the fact that many people don’t bother to fully understand Bitcoin or its intrinsic properties, and that they don’t tend to have a long-term mindset, and it’s no surprise that they view Bitcoin as riskier than fiat currency.

That is, unless you live in a shithole with hyperinflation. If that’s the case, the risk associated with fiat currency is so high that many people turn to Bitcoin—far more than in countries with stable currencies.

Great point out there, since people may feel like fiat is more stable because the devaluation process usually gradually happens. Then people have ways to protect themselves especially if they have bonds or hedging which is totally helpful to them.

Bitcoin is so volatile asset and with that this make this coin as risky asset, but their are cases that fiat is more scarier to hold especially if there's extreme cases like wars or other thing that can affect the value of their native currency. Just like what happen to Iran vs US war on which Iranian Rial has been affected badly and the value almost goes to zero. With this situation we can say that Bitcoin is safe and this is why their government choose to accept Bitcoin now since it help them not only with dropping value of their fiat, but also to bypass US dominated system and accept neutral currency to do transaction with them.

[davis196]

I completely agree with your point of view, but I also totally understand all the people, who stay away from Bitcoin/crypto and stick to fiat.
With fiat money in the bank, you have a false sense of security, which doesn't exist when storing crypto in your own cold wallet. If something happens with the fiat money in your bank account, you could call your bank. If there are unauthorized fiat transactions, the bank could step in and refund the transaction. If the bank goes bankrupt, the government insures your bank deposit for amounts up to 100K dollars and euro. I'm not sure that this deposit insurance exists all around the world, but it gives a sense of safety to many people in the developed countries.
Things are different when you are dealing with crypto. The prices are going up and down every day. Some hacker could gain access over your cold wallet and your crypto is gone. Most people hate risk and want safety. This is totally normal.