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

[cyberninja2]

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The shrugging of a guaranteed loss of purchasing power is big part of it caused by ignorance. If they knew their money is losing its value 5% every year they'd be concerned.

The problem is, people thought their paper money have the same value this year the same as the year before and they thought the market prices of goods rising is just because volatility and seasonal things.

That's a certainty. If they have knowledge, they won't be indifferent. They'll immediately act enthusiastically not ignoring the guarantee of their purchasing power for their goals. Their fear of starting is no longer the same as before which was indifferent. Unless they lack knowledge it's certainly difficult for them to start and it certainly happens as you said friend.

The similarities are certainly the same but because as happens every season the number of goods increases every year. This is nothing new except for this year's movement in the price of goods which has certainly become the focus of many parties' attention encouraging them to conduct checks to ensure and optimize the availability of staple goods every year.

[Nrcewker]

I don’t think the two can be compared. Are you complaining about fiat because of inflation? But mate, how will you buy your day to day necessities using Bitcoin? That’s simply not practical.

I’m not a fan of fiat either, but it’s still necessary in our daily lives as a stable currency. On the other hand, I’m a die hard fan of Bitcoin as an asset. I don’t see these precious bitcoins as a payment method. They’re rare, so if you buy and hold them for the long term, they can generate significant returns.

Now, regarding your point about Bitcoin being “risky”, yes, it is a risky investment. But you also need to remember that the higher the risk, the greater is the potential reward.

[fuguebtc]

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?

Investing in Bitcoin certainly carries risks, but people see this risk because of the fluctuation in the price of Bitcoin. But the risk in investing in Bitcoin is that if you invest in Bitcoin for a long time, you will have the possibility of making a profit when the price of Bitcoin rises again.
But people think that the risk of fiat currency is much less, but its risk is the highest, there is gradually widespread inflation, which we cannot see with our eyes because in every case, there is a rise in the price of goods. In the current situation, the common people do not understand the risk of fiat currency, so they think that Bitcoin is the riskiest.
The risk of domestic currency and the risk of investing in Bitcoin are completely opposite, investing in Bitcoin definitely creates an opportunity to make a profit.

Fiat carries more risks than Bitcoin in  the long run because it loses purchasing power over time , while Bitcoin tend to increase in value over the long term

However, Bitcoin carries more risk than fiat in the short term.  Fiat does not get dumped and  lose over 50-60% of its value in just a few month, as Bitcoin is currently undergoing.


So it would be inaccurate to say that one is riskier than the other. Instead of comparing them,  what we should do is understand the true nature of each asset and use them for different purposes, situation and time horizons.

[As-Soon-As]

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?

Investing in Bitcoin certainly carries risks, but people see this risk because of the fluctuation in the price of Bitcoin. But the risk in investing in Bitcoin is that if you invest in Bitcoin for a long time, you will have the possibility of making a profit when the price of Bitcoin rises again.
But people think that the risk of fiat currency is much less, but its risk is the highest, there is gradually widespread inflation, which we cannot see with our eyes because in every case, there is a rise in the price of goods. In the current situation, the common people do not understand the risk of fiat currency, so they think that Bitcoin is the riskiest.
The risk of domestic currency and the risk of investing in Bitcoin are completely opposite, investing in Bitcoin definitely creates an opportunity to make a profit.

Fiat carries more risks than Bitcoin in  the long run because it loses purchasing power over time , while Bitcoin tend to increase in value over the long term

However, Bitcoin carries more risk than fiat in the short term.  Fiat does not get dumped and  lose over 50-60% of its value in just a few month, as Bitcoin is currently undergoing.
So it would be inaccurate to say that one is riskier than the other. Instead of comparing them,  what we should do is understand the true nature of each asset and use them for different purposes, situation and time horizons.

In fact, if we calculate, Bitcoin is less risky, because those of us who will hold Bitcoin plan to hold Bitcoin for a long time. So in this case, if we calculate for a decade, then there must have been a huge change in fiat currency, if so, then Bitcoin investment must have been profitable. Because ten years ago, the price of Bitcoin was very low and investors were able to invest a considerable amount. So in this situation,
we can definitely see the decline of fiat currency, but the further Bitcoin moves towards the future, the more its price improves and the more likely it is that its price will increase due to limited supply. So no matter what the situation is, we will never face losses by investing in Bitcoin if our Bitcoin investment is stable for more than a decade.

[SOKO-DEKE]

Many people are not paying attention to inflation the way they are paying attention to Bitcoin volatility, and that is the reason why they are rejecting Bitcoin. Some are not seeing how they are being affected by inflation because it is a silent process, but with Bitcoin, the price fluctuations are what make some people scared to invest.I believe that a lack of proper knowledge about Bitcoin is what is stopping many people from adopting it. Government policies also play a role. If many countries' governments were to establish better policies for Bitcoin, it would definitely increase its adoption.So, people are not rejecting Bitcoin only because of its risks, there are other reasons stopping many from investing in it. Still those who understand its value are finding ways to adopt Bitcoin and save their funds in it as a hedge against inflation.

[Catenaccio]

Many people are not paying attention to inflation the way they are paying attention to Bitcoin volatility, and that is the reason why they are rejecting Bitcoin. Some are not seeing how they are being affected by inflation because it is a silent process, but with Bitcoin, the price fluctuations are what make some people scared to invest.

Inflation has inflation this and inflation that.
Through these articles, I see Bitcoin is better than fiat currencies, and Bitcoin is an asset I will spend my discretionary income for investment long term. Bitcoin supply curves is at a flat area already so it's true to say it is in deflationary phase toward the future years.

How is the 21 million Bitcoin cap defined and enforced?
The purchasing power of the USD over time.

[Adams0001]

I will say there are two group of people will take bitcoin as a risky cryptocurrency. And the first set of people are the inpatient group who wants to reap on a short period of time. And the second group are those who do not understand bitcoin. These two group will definitely say bitcoin is too risky but if the investor is patient enough to wait for 10 years plus, he will never say bitcoin is risky but will be happy at the end of the investment period. That is why the basic knowledge of bitcoin is needed before the investment begins. Fiat is just a stagnant currency so there is nothing to worry about.

Bitcoin is always a risk taking and if you’re not a patient type you will always struggle before you can probably succeed in it. That is the main reason some people are failing when they invest because they always think they will get profit in a short term and Bitcoin is always a patient coin and we need to wait for our target before taking it and enjoy the benefits. When you have money is good to invest in crypto not to leave it in fiat because as for me leaving your money without investing and leave it in bank won’t bring any benefits for you but investing it in bitcoin for long term you can get something at of it. But when is for business is better he should stay in fiat so that you won’t lose your target when you need the funds immediately.

[Findingnemo]

Fiat loses its value over the time but it is the one we have now that is accepted everywhere inside your border so it is not the risk here other than losing it's value. And people who want bitcoin is for investment means they want to sell at higher price later for the same exact fiat that is completely controlled, it is bitter but that is the reality of the system.