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

[Proty]

 There is no doubt that bitcoin investment is very risky and not everyone has the high risk tolerance to be able to withstand this risk . Therefore, they may choose not to invest in bitcoin. Some is because they don't trust the bitcoin ecosystem, they believe bitcoin is like other crypto currency that it's value has reduced to dust. There is this fear that bitcoin will one day face the Same thing. The main reason why some people reject bitcoin isn't because of fear but lack knowledge about bitcoin that has lead them to see bitcoin same as other crypto currency.

[Akbarkoe]

Life is a plan of risks that we can minimize if you have enough knowledge, such as fiat or bitcoin, bitcoin for me is useful and also fiat is still very much used every day too, so I think as long as we only hold fiat for needs only it doesn't matter the risk is worse if you don't have fiat while transactions now still use fiat, bitcoin is only for long-term investment to fight inflation that will take away our money, this can be one of the best choices in order to have a value that continues to grow, so I think taking the risk is a natural thing, but if you don't take it at all, the risk will be worse.

[blockman]

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?

It might be. They choose comfort over risks even if they know that there's growth upon taking that risk. But as they reject it right now, I don't think that they're going to reject it forever. Everyone is open to the idea of taking risk for as long as they know about it. Right now, many still doesn't like the risk that it has got because they have no idea of how they're going to mitigate it. And once they know how to do it, they'll be the ones to show how they've made it and might boast about the profit they've made after doing it alone without someone's help. That's how they want it to be.

[Abiky]

If you can buy anything in the physical world with your bitcoin/crypto, that's excellent.

For example, I always top my phone bill with BTC. It is a 3rd party service offered by Bitrefill.

It is more simpler for me than having to buy scratch cards with the local currency and redeeming them.

If only you could. Unfortunately, the number of merchants/businesses accepting Bitcoin are limited. Adoption is growing, albeit at a slow and steady pace. We still need to depend on Fiat to "live". It's technically impossible to survive entirely off crypto (in this case, Bitcoin). Many people say Bitcoin is "risky" because of the unstable (volatile) market prices.

While Fiat often has steady inflation rates (like 2%, for instance), Bitcoin's price can dip way above 20% in a matter of weeks or months. At the same time, it can increase exponentially, giving you two to three times more returns. I hope that as developers increase BTC's transaction capacity, more users will get on-board. Increased institutional capital inflows might even help make BTC less volatile. We'll never know what the future holds. So better be prepared, just in case.

[Popkon6]

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?

People consider Bitcoin risky because of its falling price, but Bitcoin is not risky, rather, if you can accept Bitcoin by taking risks, it is definitely possible to bring success in life. If you look at fiat currency, the value of your domestic currency is gradually decreasing. The value of the currency is not the same as it was in the past, and it will not be that much in the future. Therefore, the price of Bitcoin is higher now than in the past and is most likely to be higher in the future.
Because the supply of Bitcoin is limited, there is a huge demand for Bitcoin and its price is the highest due to the demand. Therefore, the use of Bitcoin is increasing day by day and its value will be higher in the future, so the best plan is to take risks and save for the future of Bitcoin.

[Livingleged]

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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?

Well, to begin with issue of risk taking, it’s actually something we can’t stay away from as social beings.. life it self is a risk. What I think about what’s holding some back from not considering bitcoin investment is the wrong natives  that is being pushed out there, yes we all know it’s volatile and price fluctuates and thats normal for use to have our bull and bear market.

Why would someone even think holding fiat is less risky to holding bitcoin? Thats a very wrong narrative and I’m certain that everyone here in this forum can attest to that. Bitcoin isn’t on same table with fiat currently the conversation is bitcoin Asset that store value such as BTC and Gold but not fiat.

Another issue is that there are people who tried to get involved but they went through the wrong route and ended up being a victim of scams and they never want to believe anything you want to tell them about bitcoin again. It’s not their fault if you look at it someway or the other first impressions matters a lot.

[Abiky]

Well, to begin with issue of risk taking, it’s actually something we can’t stay away from as social beings.. life it self is a risk. What I think about what’s holding some back from not considering bitcoin investment is the wrong natives  that is being pushed out there, yes we all know it’s volatile and price fluctuates and thats normal for use to have our bull and bear market.

Why would someone even think holding fiat is less risky to holding bitcoin? Thats a very wrong narrative and I’m certain that everyone here in this forum can attest to that. Bitcoin isn’t on same table with fiat currently the conversation is bitcoin Asset that store value such as BTC and Gold but not fiat.

Another issue is that there are people who tried to get involved but they went through the wrong route and ended up being a victim of scams and they never want to believe anything you want to tell them about bitcoin again. It’s not their fault if you look at it someway or the other first impressions matters a lot.

Scams will always be everywhere. Fiat is not immune from this. But between BTC and Fiat, I believe Bitcoin is far riskier because of its unstable market prices. Fiat can have inflation and all, but you won't see it dip 30% - 45% overnight. BTC can either rise all the way to the moon, or go down the drain in an instant. It's a gamble. In altcoins, it's even worse.

One can only hope that with increased adoption from institutional investors and governments, Bitcoin's market prices will stabilize over time. That would help boost confidence among everyday people. I'd diversify my investment just to be safe.

[retreat]

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 don't accept Bitcoin because they've been misinformed about it as many articles claim that Bitcoin is a volatile, high-risk asset, but they never explain that this volatility is short-term and not a constant state. If they were able to understand this, along with the benefits Bitcoin offers, they wouldn't reject Bitcoin or claim it's risky to invest their money there. Instead, they would start investing their money in Bitcoin for the long term as a store of value, and not so massively save their money in fiat which from time to time experiences depreciation due to inflation.

[Jubilee58]

Before the invention of bitcoin, many of us here have relied so much on banks thinking is a safe place to keep our money, but the truth remains, fiat currency is not good to hold, it is not a store of value, and vulnerable to inflation. Fiat currency is totally in control of the federal government, and what ever policy they make remains authentic.
As for Bitcoin, it is decentralized, and not in control of any individual or central authority, this reason makes bitcoin a store of value, and enable bitcoin to appreciate in value on the long run.

[BitBrainers]

It's the visibility thing for sure. A 20% dip feels like an event, but a 7% inflation per year feels like "just how things are". It's the power media and normalization.

Also worth saying, most people don't actually compare the two honestly. They benchmark Bitcoin against zero loss instead of against what their cash actually did over the same period. If you ran the numbers on savings accounts vs real inflation over the last decade, "safe" looks a lot less safe.

The benchmark problem is real. People compare Bitcoin to zero loss instead of to what their cash actually returned after inflation. Run that comparison over 10 years and the "safe" option looks a lot more expensive than they thought.

[liasbaa]

Life is a plan of risks that we can minimize if you have enough knowledge, such as fiat or bitcoin, bitcoin for me is useful and also fiat is still very much used every day too, so I think as long as we only hold fiat for needs only it doesn't matter the risk is worse if you don't have fiat while transactions now still use fiat, bitcoin is only for long-term investment to fight inflation that will take away our money, this can be one of the best choices in order to have a value that continues to grow, so I think taking the risk is a natural thing, but if you don't take it at all, the risk will be worse.

I completely agree with you. We need fiat in every aspect of our daily lives, but our main asset for investment should be Bitcoin. To prevent the negative effects of inflation from eroding your funds, you should refrain from holding excess fiat. It would be wise to accumulate Bitcoin instead of storing excess fiat. Those who are aware of the modern financial system are leaning towards alternative financial system because it is a great opportunity to build an alternative asset to the traditional financial system by accumulating and holding Bitcoin for the long term.

Cash fiat you own is gradually being depleted and you cannot fight against this financial system outside the government's decision, but you can improve your financial situation through independent way by invest in Bitcoin.

[Outhue]

Bitcoin all the way, fiat have disappointed me too many times in the past and banks have showed me that I am under their control, I have to abide by what they want, if I need big amount of money it's possible that I won't be able to get it all at once from my bank, money has to be available in the bank at first, just imagine that.

Also the money loses value very fast, you can't keep money in the bank for a year without feeling like they rip you off, because of inflation, since I've finally moved into Bitcoin completely I never feel bad about my money anymore.

[Akbarkoe]

Life is a plan of risks that we can minimize if you have enough knowledge, such as fiat or bitcoin, bitcoin for me is useful and also fiat is still very much used every day too, so I think as long as we only hold fiat for needs only it doesn't matter the risk is worse if you don't have fiat while transactions now still use fiat, bitcoin is only for long-term investment to fight inflation that will take away our money, this can be one of the best choices in order to have a value that continues to grow, so I think taking the risk is a natural thing, but if you don't take it at all, the risk will be worse.

I completely agree with you. We need fiat in every aspect of our daily lives, but our main asset for investment should be Bitcoin. To prevent the negative effects of inflation from eroding your funds, you should refrain from holding excess fiat. It would be wise to accumulate Bitcoin instead of storing excess fiat. Those who are aware of the modern financial system are leaning towards alternative financial system because it is a great opportunity to build an alternative asset to the traditional financial system by accumulating and holding Bitcoin for the long term.

Cash fiat you own is gradually being depleted and you cannot fight against this financial system outside the government's decision, but you can improve your financial situation through independent way by invest in Bitcoin.

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.

[Dogedegen]

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?

Are we talking about complete investment and adoption here or some adoption? Because it depends on what you want to talk about. In the case of full adoption and real investment respective to the net worth of the person then the volatility of Bitcoin can be an issue, but even in that case we are talking about people who would only adopt it for financial reasons and not for people who understood Bitcoin. If you understand that Bitcoin is the path to freedom and it is the only choice, then you see the volatility as an extra cost that at this time must be part of it so why would you have a problem with that? For the other case when we consider only some adoption, it is not the volatility at all because that argument does not stand. If you consider people in the first world who have no Bitcoin at all, why would they care if their $100 investment would go up and down in short term? It does not impact them at all and it creates no real risk to them at all because it presents such a small amount of money, yet they have no Bitcoin at all. That tells us that the reason must be something else, whether lack of education, indifference, laziness or something else but it is not volatility or price performance.

It's the visibility thing for sure. A 20% dip feels like an event, but a 7% inflation per year feels like "just how things are". It's the power media and normalization.

Also worth saying, most people don't actually compare the two honestly. They benchmark Bitcoin against zero loss instead of against what their cash actually did over the same period. If you ran the numbers on savings accounts vs real inflation over the last decade, "safe" looks a lot less safe.

Yeah they do the comparison wrong, I've seen people do it wrong when they use Bitcoin to invest in some shitcoin. They write down the USD price of the shitcoin and then see if they came on top at the end, but they fail to consider that the original Bitcoin that they have used went up even more in price so in the end they actually lost money even if it looks like in USD that they didn't. When we talk about savings plans and the performance in the last decade or even a bit longer maybe 15 years, it is clear that it is not safe at all. Actually people are losing a fair amount of money with it, all it does is reduce the rate at which you lose money. So it is a bit better than not keeping it as pure cash or without a plan, that is all. People are stuck in the past where savings actually produced fair returns.

[Floxynice]

Currently in my country, the highest currency denomination cannot buy a good loaf of bread, yet the same people who are suffering and smiling still think fiat is better. Well, I do not blame them; they are only following the adage that says, “The devil you know is better than the angel you do not know.” These people still do not understand Bitcoin and are being cautious so they do not become victims of another scam.

However, I still have a problem with these people because they do not know much about Bitcoin and still do not care to learn about it. They are simply comfortable with their present situation and do not believe that an online currency with no central authority controlling it is worth giving a try.

[MRY]

Bitcoin all the way, fiat have disappointed me too many times in the past and banks have showed me that I am under their control, I have to abide by what they want, if I need big amount of money it's possible that I won't be able to get it all at once from my bank, money has to be available in the bank at first, just imagine that.

Also the money loses value very fast, you can't keep money in the bank for a year without feeling like they rip you off, because of inflation, since I've finally moved into Bitcoin completely I never feel bad about my money anymore.

This is why Bitcoin gives people financial freedom that cannot be easily accessed on the conventional banking system. The value of traditional currencies is continuously weakening due to inflation each year. On moving to digital assets, one can completely control wealth without external involvement. Time tested, Asset security is currently among the high priorities of people that require economic liberty out of the bounds of the banking system.

[ZAINmalik75]

Currently in my country, the highest currency denomination cannot buy a good loaf of bread, yet the same people who are suffering and smiling still think fiat is better. Well, I do not blame them; they are only following the adage that says, “The devil you know is better than the angel you do not know.” These people still do not understand Bitcoin and are being cautious so they do not become victims of another scam.

However, I still have a problem with these people because they do not know much about Bitcoin and still do not care to learn about it. They are simply comfortable with their present situation and do not believe that an online currency with no central authority controlling it is worth giving a try.

That's a problem for a lot of people, they are just not ready to accept that cryptocurrencies, especially Bitcoin, can be better in some aspects than fiat currencies because they believe that the system their ancestors have been using is the best one and they are not going to change and adapt. This is surely a problem because humans are supposed to adapt and change over time if they want to keep up with the pace of the world, and if they don't do that, they will surely have problems but they won't accept it, and say that everything is good.

Those who know that something like Bitcoin exists and are still not trying to learn about it or even think about using it to at least keep their money in it, there is nothing you can do about them because knowing everything and still behaving like you don't is a major problem that can't be solved. It is understandable if some of them don't yet know about it or don't understand it, maybe they will adapt if they understand things in a better way.

[I_Anime]

Bitcoin has its risk due to price volatility , which actually made it to be seen as a form of investment (due to price fluctuation) . And there’s nothing like a risk free investment, so yeah Bitcoin has its own risk but it’s manageable , you can manage it by having the right knowledge and information.

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.

[bricky2ndlife]

Bitcoin has its risk due to price volatility , which actually made it to be seen as a form of investment (due to price fluctuation) . And there’s nothing like a risk free investment, so yeah Bitcoin has its own risk but it’s manageable , you can manage it by having the right knowledge and information.

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.

Price volatility means it is more severe than fluctuations and volatility does not equal to good price growth. Bitcoin has everything from price fluctuations, high volatility to parabolic growth with time over past years since 2009.

The parabolic growth of Bitcoin price over years means if people bought bitcoin in past years and could hold it for several years, they would have gotten very good profit from their investment.

Bitcoin price growth curve that is upward parabolic.
https://charts.bitbo.io/yearly-candles/

Bitcoin Returns vs. Major Asset Classes.