A question that hit me 🎯 hard

[Ashawowo(OS)]

I have literally turned Bitcoin into my bank where I store all my money because the fiat in my country is very bad and inflation hits it faster than most fiat currency of other countries.

But then someone strike me hard with a disturbing question, he said, what if Bitcoin do failed in the future? What is my plan for that?
He said, we don't know if Bitcoin will have a better future tomorrow, imagine you having everything in Bitcoin and something happened.

This got me good, it got me thinking if I am doing in wrong? Presently I am escaping that inflation but my response to him is life itself, maybe I won't even live long to see Bitcoin fail?

But what do you people think? Do you think there is a better approach to this solution of mine?

You don't need to put everything into bitcoin, not at all, you should only invest as much as you can afford to loose since thee is no guarantees or insurance on your investment. Furthermore you should look favorably at diversification to create more security on your asset portfolio. Bitcoin is a good asset, but I will not advise anyone to go all in, you should have some cash cushion in case of emergencies and even have some physical assets too. There should be a balance in your assets portfolio, maybe between digital and physical assets, you shouldn't throw everything into bitcoin, that's not actually very advisable.

[Charles-Tim]

If Bitcoin investment isn't risky? Care to enlighten me on this? Remember, if Mr A doesn't have the same tolerance as Mr B, do you think A will have the patience to wait till it starts yielding fruit? When you want to double your money, a little should go there if the plan is to hold for a long time and if you want to DCA, it's still good to use a portion and not all of it.

Bitcoin has proven several times that it is a store of value. Normally, no business or investment that is not risky, but some show they are not risky too much. Example is gold, some stocks, land, properties and bitcoin is among them as far as it is getting to all-time high.

But gambling, trading, prediction markets, binary options and some other things are very risky in a way that most people that are doing such things are losing money. So the chance of making money with some things like that is low while some people will think they have wisdom, that they can make money from. The simple word of only use the amount of money that they can afford to lose on such things should let them know how risky they are.

Bitcoin should be about using discretionary income. It does not have to be 100%, it can be 30% of one's discretionary income.

[impulse709]

Bitcoin investment is risky and we advise people to trade with what they can afford to lose but in your case, you're going the extra mile by leaving the whole thing there which isn't advisable.

I will not advise him to invest all his money on bitcoin or use it as a hedge against inflation, but saying bitcoin investment is risky, it is not absolutely true. This is what many people will be saying while those that invest money now will make money from it in 2 or 3 years time. Also bitcoin is not about invest what you can afford to lose, it is not similar to trading or gambling.

True, but you'd agree that it's not something you'd focus all your funds on just because it has the potential to make one rich? If Bitcoin investment isn't risky? Care to enlighten me on this? Remember, if Mr A doesn't have the same tolerance as Mr B, do you think A will have the patience to wait till it starts yielding fruit? When you want to double your money, a little should go there if the plan is to hold for a long time and if you want to DCA, it's still good to use a portion and not all of it.

I think both of these points are valid. Bitcoin is not the same as gambling. As it is an asset with an increasing number of people embracing it and is a finite commodity. But that doesn't mean it is totally safe. Many investors. Particularly during market downturns. May find price volatility challenging. Different investors may have different levels of risk tolerance and what works for one may not work for another. That's why it's seldom a good idea to put everything into Bitcoin. For many, a considered strategy. Diversified and patient. Beats the quick and easy route.

[Betwrong]

~ Presently I am escaping that inflation but my response to him is life itself, maybe I won't even live long to see Bitcoin fail?

But what do you people think? Do you think there is a better approach to this solution of mine?

I believe in Bitcoin’s great future, and yet I don’t approve of your approach. ‘Don’t put all your eggs in one basket,’ as they say. If you want to protect your money from inflation, buy some Swiss francs and keep in BTC only what you can afford not to touch for five years.

[purple_sparkles]

I have literally turned Bitcoin into my bank where I store all my money because the fiat in my country is very bad and inflation hits it faster than most fiat currency of other countries.

But then someone strike me hard with a disturbing question, he said, what if Bitcoin do failed in the future? What is my plan for that?
He said, we don't know if Bitcoin will have a better future tomorrow, imagine you having everything in Bitcoin and something happened.

This got me good, it got me thinking if I am doing in wrong? Presently I am escaping that inflation but my response to him is life itself, maybe I won't even live long to see Bitcoin fail?

But what do you people think? Do you think there is a better approach to this solution of mine?

 I relate to your approach, because today bitcoin is one of the easiest and most reliable ways to preserve wealth and potentially see profits that are not completely eaten away by inflation. At the same time, it is still important to look for several different ways to earn money and invest. Nothing in the world lasts forever. So far, everything with bitcoin looks good, and I hope it will continue that way, but it is still important to stay alert and keep an eye on the situation. A major global energy crisis, for example, or the development of a truly powerful quantum computer, could potentially change things.

[riscohen4]

I don't think it is wise putting all your money in Bitcoin even though you truly believe in it. Like my papa will say, never put all your eggs in one basket. A very strong advice. Not saying anything will happen to Bitcoin, but it is better to be safe than sorry. I know inflation is kicking in hard and everyone is looking for safe heaven to put their funds. But try and look for another alternative other than Bitcoin to put your funds. Diversification is better. Keep that in mind.

Every investment carry some kind of risk and doing such act is not advisable. It is better to balance Bitcoin holdings. Having strong belief in Bitcoin has made some investors ignore basic risk management. That attitude would later affect in life. Even if Bitcoin performs 100%. Just seperate your funds.

[OcTradism]

You have all the rights to be very positive on how the future of Bitcoin looks but at one point you become delusional and this is where you do.  Putting ALL your Assets in Bitcoin is like gambling.  You do not know what happens tomorrow and how the tomorrow event will affect Bitcoin.  And although it has done a lot of revenue to so many people, if you have every thing concentrated on one single basket you are going to get very screwed if things ever go bad.

Difersifying is a great thing and this is why most Wealthy people never concentrate on a single Asset.  You may be missing out on some Bitcoin profits but if any thing ever happens to Bitcoin, you will have an alternative.  When you have no alternative, you panic and you make the worst decisions.  Or you end up on the streets right away.  Investing in Bitcoin does not mean glorifying it as if there is no reason to hold any other thing.  Do not be a cult.

I am positive about Bitcoin but I did not write anything like I recommend anyone to invest all money in Bitcoin.

My opinion and the advice for OP is if he felt bad or shocked when receiving such questions from anyone, it reveals that he did not prepare too well for his investment in Bitcoin, including financial, capital and risk management before and during his investment. I explained clearly that he has to ask himself that question before starting the investment if he actually is careful with his research before starting.

I believe you misunderstood my post.

[macson]

But what do you people think? Do you think there is a better approach to this solution of mine?

If you can't afford the risk, it's best not to put all your eggs in one basket. We never know what Bitcoin will do in the future. While we're optimistic that it will do well, unforeseen events could cause its price to drop drastically. While we don't expect that to happen, it's always a good idea to be prepared, and diversifying into other assets is a wise way to mitigate risk.

[lionheart78]

Just don't get greedy waiting for an impossible price increase and invest all your money in Bitcoin.  Cash out all or half of your Bitcoin investment if your target price is achieved, best if you can manage to pull out your investment and still have Bitcoin holdings.  This way, you have secured your capital, and what you are waiting for is your pure profit.

While you're at it, I think it is best to learn how to trade.  Although many in this forum frown on trading for whatever personal reason they have, if you happen to learn and master it, you can easily invest and get your investment out while still holding a good amount of BTC.  Yes, it has a high risk while you are learning, but the more you get familiarized with trading, the easier it is for you to execute a good trade deal.

[Majestic-milf]

If Bitcoin investment isn't risky? Care to enlighten me on this? Remember, if Mr A doesn't have the same tolerance as Mr B, do you think A will have the patience to wait till it starts yielding fruit? When you want to double your money, a little should go there if the plan is to hold for a long time and if you want to DCA, it's still good to use a portion and not all of it.

Bitcoin has proven several times that it is a store of value. Normally, no business or investment that is not risky, but some show they are not risky too much. Example is gold, some stocks, land, properties and bitcoin is among them as far as it is getting to all-time high.

But gambling, trading, prediction markets, binary options and some other things are very risky in a way that most people that are doing such things are losing money. So the chance of making money with some things like that is low while some people will think they have wisdom, that they can make money from. The simple word of only use the amount of money that they can afford to lose on such things should let them know how risky they are.

Bitcoin should be about using discretionary income. It does not have to be 100%, it can be 30% of one's discretionary income.

You're speaking my language, although in a different sense. I said to the op that it's not proper to store all his funds in Bitcoin, not eliminating the risk and not also putting too much confidence in it. I never said there's no chance of making profit from it but it's also good to understand that using your entire funds is stupid and careless.

[JulBTCTalk]

I understand why you chose Bitcoin, especially if your local currency is losing value fast. But putting all your money in one place is still risky. Bitcoin may have a strong future, but it can still crash, stay down for a long time, or become hard to use when you need quick cash. A better approach is balance. Keep some money for daily needs and emergencies, then keep Bitcoin as long-term savings. That way you are protecting yourself from inflation without depending on only one option. 

[CryptoHeadlineNews]

I have literally turned Bitcoin into my bank where I store all my money because the fiat in my country is very bad and inflation hits it faster than most fiat currency of other countries.

Keeping all your money in Bitcoin as a place where you store all your money is not a bad idea, but if I may asked, what happens when you have an urgent need for money. Or does it mean you always sell your Bitcoin every day when you have an urgent need for fiat? Because if that's the case, them it's not the best approach to it. Because while investing in Bitcoin, it's always meant to have a long term investment timeframe or target, and not the one whereby you invest today and keep spending whenever you have urgent need for fiat for daily usage. Hence, a more reason why it's good to diversify your funds in both fiat and Bitcoin. While the highest proportion should be in Bitcoin for investment purposes.

This got me good, it got me thinking if I am doing in wrong? Presently I am escaping that inflation but my response to him is life itself, maybe I won't even live long to see Bitcoin fail?

That was a perfect response you gave regarding Bitcoin not failing anytime soon. Because inasmuch as Bitcoin is a volatile decentralized digital assets, it doesn't justify any reason that it might fail any time soon.

[Lida93]

But what do you people think? Do you think there is a better approach to this solution of mine?

When it comes to investment we actually have to play safe by diversifying into various other areas of investment assets that just like bitcoin can be depended on to be a store of value. Take a look at all the institutions that have adopted bitcoin as strategic reserve, they are not putting all their eggs into one basket since the future uncertainties can't be predicted what direction it may appear from. Diversifying is just the safer approach, you can go into precious metals or estate investment.

[Synchronice]

I have literally turned Bitcoin into my bank where I store all my money because the fiat in my country is very bad and inflation hits it faster than most fiat currency of other countries.

But then someone strike me hard with a disturbing question, he said, what if Bitcoin do failed in the future? What is my plan for that?
He said, we don't know if Bitcoin will have a better future tomorrow, imagine you having everything in Bitcoin and something happened.

This got me good, it got me thinking if I am doing in wrong? Presently I am escaping that inflation but my response to him is life itself, maybe I won't even live long to see Bitcoin fail?

But what do you people think? Do you think there is a better approach to this solution of mine?

Do not only invest in Bitcoin, invest in some altcoins, gold, stocks and so on but honestly, if you truly want to feel secure, then you should start a business that will generate money money. I.E. You create the product or the service and you have customers who use your product or a service. This way, you are creating something valuable, which will sell and generate profit, doesn't matter what and you won't be dependable on the price of the Bitcoin or another asset. The world works on production, not on keeping a storage of metals or virtual things.