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

[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.

[Churchillvv]

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.

The problem I have with people is the fact that they try to make comparison at all point instead of living on both sides by side, basically bitcoin is good and better in terms of appreciation but fiat is better for short term use we can’t compare that because even satoshi never intended comparison but a viz vice currency that serves as an alternative currency to fiat. If you need quick usage go with fiat but if you long term profit go for bitcoin simple.

[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.

The problem I have with people is the fact that they try to make comparison at all point instead of living on both sides by side, basically bitcoin is good and better in terms of appreciation but fiat is better for short term use we can’t compare that because even satoshi never intended comparison but a viz vice currency that serves as an alternative currency to fiat. If you need quick usage go with fiat but if you long term profit go for bitcoin simple.

I doubt that is how it works, what if in the long term we can't use Bitcoin as currency so we have to trade it for fiat to make it spendable money that beats the whole purpose, right? Why go through all the hassle just to get the returns and use the same controlled money?

We should embrace the bitcoin and try to keep it as currency as possible then only they will stay in the long term.

[Furious 7]

True, this will feel stagnant when we only compare at a glance but in the end the longer we live for sure we will feel how the value that continues to shrink over time as the value of fiat gets weaker. This shows that although we will still continue to hold fiat (because the economic system is like that) but this is not the right way to keep too long the fiat We have because the longer the value will continue to decrease and that is a certainty.

So it is effective to hold fiat only for the short and medium term but not too worth it if hoarding in the long term because what we think is now Big could be for the next few years it does not match our expectations because of the decline in value that continues to occur.
When we talk about hedging then it is not wrong to make bitcoin as the main option because currently bitcoin is still very worth it to be hedged.

Yes, the worth of paper money is bound to be depreciated as the prices of the basic necessities are bound to keep on increasing every year. It is definitely harmful to hold cash too long and not to invest it. Money can be converted into Bitcoin avoiding any loss value because of the inflation. I believe that this plan is extremely useful in securing financial sustainability of the family in the future.

Price increases are a reaction of the value of the currency that is always weakening at any time and it is a domino effect that can not be released because inflation in fiat always occurs.
The fiat mechanism will continue to depend on central bank policy and public trust so that when the policy continues to be in expansive mode then inflation will continue to occur and prices increase is a domino effect of it.

For the issue of investment it comes back to each individual but because I like bitcoin then this will be one of the most worth it options but not only bitcoin can be used as value and it comes back to each whether believing in bitcoin or other assets such as gold because there is no compulsion to be in bitcoin. What is certain is that in this case it will be better to hold the investment compared to holding fiat over a long period of time.

[Sonia_123]

I don't think they really understand what and how Bitcoin works because if they do, I don't think they will be comparing the risk involved in bitcoin and fiat 5gat will only be depreciating without any reward in future.

Fiat stands to gain nothing but losses in future therefore one should reason out of his traditional currency and invest in bitcoin no matter it's risk, it's a thousand better than the risk of fiat since bitcoin will keep on appreciating while fiat depreciates always.

[fuguebtc]

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.

As I said very clearly above,  Bitcoin and fiat are fundamentally different. They are used for different purposes and situation.

If you do calculate, do not focus only on the long term while ignoring the short term.  Because you still need money to cover daily living  expenses and emergencies. Try putting all your money into Bitcoin and see how inconvenient your life will become . You will have to sell Bitcoin every time you need money to spend, regardless of whether the price is high or low, even if its value drops by 50%.


We are always complaining about fiat, but I wonder if any of us have ever stopped using it?

[Alonso_]

Bitcoin isn’t as risky as it seems, we know that all investments are risky which is why it’s more important to invest what you can afford to loose, When you keep money, or you save money for investments, it would be more important that we invest what an investor would afford to loose.

There are ways to stay positive in terms of making investments, you can’t just keep fiat and stay positive when it comes to making investments in Bitcoin, I have been steadfast with buy and hold bitcoin more like a sustainable ways of making investments.

[Mr_Brilliant$]

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.

Inflation is one of those things that use to happen quietly in the background, so a lot of people don’t really feel it until they notice that the same amount of money can not even buy what it used to.. Because it happens gradually, they barely pay attention to it..
But with Bitcoin, every price movement is right in your face.. The moment it drops, people start calling it risky, but they don’t stop to think about what inflation is doing to their cash every single day.. I think awareness is the biggest factor here as well..

[CryptoBuds]

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.

Volatility, lack of knowledge, and government policies are some of the reasons why people hesitate to invest in BTC. However, even if the government enacts better policies for Bitcoin and knowledge about Bitcoin become more widespread, I do not think those currently holding fiat will switch to Bitcoin.

Bitcoin is not the only hedge against inflation. Long before Bitcoin, we already had gold or stocks, both of which have long been regarded as effective inflation hedges. Everyone knows about them, but many of them still decide to hold onto fiat. This suggests that awareness alone is not enough to change people's financial behavior.

So, I do not think they will switch to Bitcoin just because they understand it better.

[Agbamoni]

Valid points OP nice one. The definition of safe to me is how we control our money. If I dont need money for any purpose in a very long time, or perhaps I have enough to keep family and me well fed, healthy, strong, and cover my expenses properly. The other money meant for saving or investing may be kept in bitcoin instead of fiat. Mind you, it should be money that I do not plan to use for years, provided that I have another for emergencies. I may decide to leave it in fiat, but that would be stupid unless I put it in the stock market, which is also risky like bitcoin.

[Cgrexp]

Bitcoin isn’t as risky as it seems, we know that all investments are risky which is why it’s more important to invest what you can afford to loose, When you keep money, or you save money for investments, it would be more important that we invest what an investor would afford to loose.

There are ways to stay positive in terms of making investments, you can’t just keep fiat and stay positive when it comes to making investments in Bitcoin, I have been steadfast with buy and hold bitcoin more like a sustainable ways of making investments.

It is better not to invest more than you can afford to lose. Don't invest more than you can afford to lose . Sometimes people easily invest more than they can afford. Many people recognize Bitcoin as one of the best profitable asymmetric bets, available to everyone, as long as those people have discretionary funds. Investing in Bitcoin can lead to a loss of up to 100% of the invested amount, and without using leverage, the loss will not exceed 100%. There is a possibility of losing everything, whether due to execution risk or due to some other event related to the asset. The mindset needs to be right and the steps taken to protect both the investment and cashflow management need to be appropriate. The possibility of profit is not guaranteed. We should acknowledge this in our Bitcoin management, and even when talking about Bitcoin.

[Byebyebtc]

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.

What makes the difference is long term and short term it terms of risk, based on Bitcoins volatility engaging anything that is short term is definitely more risky, but in a significant amount of time the value increases, and that is where it gets better than fait, fait tends to loose value after a significant amount of time, and it is bearly noticeable so individuals keep living just fine with it, meanwhile Bitcoin needs a level of digital exposure before one can confidently investing the asset. So there will always be other reasons why people will miss out on Bitcoin, is not that they love fait but it could be something else

[topbitcoin]

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.

From this we must see the scale of priorities by making fiat a short and medium term need and making bitcoin an investment and hedge that we have. Being in bitcoin is risky but by looking at the progress that has happened now we always believe that every year bitcoin will increase and it becomes a very big hope for us to see a future with the financial freedom that we hope for.

We cannot abandon fiat because it is a system that has been created and will continue to exist because the government controls it but that does not mean we cannot change the quality of our lives and bitcoin can be one of the very good solutions in this regard.  So the scale of our priorities is important and do not try to reverse this because bitcoin will not be suitable for the short term but sometimes some of us always try to do maneuvers that are sometimes extreme even though the short-term risk of bitcoin is quite large.

[WatChe]

What makes the difference is long term and short term it terms of risk, based on Bitcoins volatility engaging anything that is short term is definitely more risky, but in a significant amount of time the value increases, and that is where it gets better than fait, fait tends to loose value after a significant amount of time, and it is bearly noticeable so individuals keep living just fine with it, meanwhile Bitcoin needs a level of digital exposure before one can confidently investing the asset. So there will always be other reasons why people will miss out on Bitcoin, is not that they love fait but it could be something else

If we talk about Bitcoin volatility then Bitcoin is volatile, if we see it in short term but in the long run its volatility decrease. This is why best way to proceed with Bitcoin is to buy it and hodl it for long duration. Fiat is necessary for day to day transactions and to counter emergency needs but saving fiat is not a good idea because due to increasing inflation fiat loses its value on yearly basis. Bitcoin is valuable asset but its unfortunate that not many people are well aware of it and probably that is the reason why many are not investing in this asset.

[cyberninja2]

...

From this we must see the scale of priorities by making fiat a short and medium term need and making bitcoin an investment and hedge that we have. Being in bitcoin is risky but by looking at the progress that has happened now we always believe that every year bitcoin will increase and it becomes a very big hope for us to see a future with the financial freedom that we hope for.

The thing about progress that makes me very confident is investing every time I make money and I also invest with discretionary funds because currently the income we receive is weekly and after everything is sufficient for my needs, I think choosing to invest is something that is an obligation for us to do because if we don't invest, the funds will run out and there are always expenses that we make with the aim that the funds will run out without any remaining savings, so by investing with discretionary funds, even though sometimes with a small amount, it will slowly become our future assets with a large amount, this is because without us realizing what we have been doing so far.