A question that hit me 🎯 hard

[Findingnemo]

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?

"Don't put all your eggs in one basket", even if it is bitcoin still you can never be sure that it won't fail so learn to follow the golden rule of diversification. Keep some in bitcoin and buy some physical gold and if you have more money then buy stocks, real estate or run a business that you no need to keep overseeing everything on your own and etc. Making money is an art but how do you utilize is separate one so make sure you master it as well.

[Botnake]

Putting all your eggs in a single basket is even more risky. No matter how profitable and reliable bitcoin today, the future remains unguaranteed. So don't be too confident, but always make calculated risk. Invest in bitcoin and at the same time learn to diversify. You can invest in stocks or bonds, real estate and land properties, that way if bitcoin loses its value, at least your other investments are paying off.

There is always risk for any investment, as much as we need to invest on the right asset, its also crucial to never focus on a single asset but always diversify.

[Ndabagi01]

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?

No one can tell what will happen to Bitcoin in years to come from now even though it all looks good and glaring now, having a better future from the prospective point of view of it. So not many people are thinking in that direction of maybe if bitcoin fails because they believe it won’t fail and they’re convinced without reasonable doubt that bitcoin will continue to grow.

As a person/investor in bitcoin, it is better to have an alternative to your bitcoin investment, here we talk more about stocks, estates, landed properties etc so that you’ll have a good chance at securing your future more and a not probable event of bitcoin failing and affecting your overall investment. Think less, Bitcoin will only get better from here.

[Hamza2424]

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?

Your friend has raised a valid concern, but your response about life itself actually sounds more philosophical than it appears on the surface. The honest risk assessment in this situation is this bro, BTC falling completely would require one of three things happening, a catastrophic unfixable protocol bug, a global coordinated government shutdown of internet infrastructure, or a quantum computing breakthrough that breaks encryption overnight. All three are possible, but the probability of any of them happening before BTC becomes deeply embedded in the global financial infrastructure is really low.

You should also hesitate to invest all your funds in BTC alone, because a single-asset portfolio is risky for 100% allocation. I am not saying this because BTC could fall, I am saying it because life creates liquidity needs at the worst possible moments, and you might need capital immediately. If you put everything into BTC and the market is in a bear phase when you need the funds, then you will be forced to sell at a huge loss.

[Russlenat]

Storing your money in bitcoin is a smart move, but putting your entire life-savings into bitcoin is a highly risky decision of yours as you might wake up one day losing everything you have. It carries significant financial risk because bitcoin in the first place is highly volatile and moves in such an unpredictable market. It's not safe, and will never be safe in the future.

Instead, learn to diversify your assets. Invest in bitcoin and allocate only what you are capable to lose. And start investing in gold and silver, stocks or real estate because these will definitely secure profitable income in the near future.

[EFS]

People were asking the same questions 10 years ago. Now we can see how things turned out for them and where Bitcoin holders stand. Is it really worth taking this risk? It's very hard to be a nocoiner. Even if you don't put all your investments into Bitcoin, you can still keep a significant portion of your assets there. Inflation will always be around. If you don't know a better way to protect your wealth from inflation, Bitcoin is a great option. Nothing better than Bitcoin has appeared in the last 18 years.

[freedomgo]

Your friend makes sense. Do not just invest and put all your money into bitcoin, because no one can guarantee what will be the future like for bitcoin. Yes, it may be highly profitable from its current price, but no one has the crystal clear to predict correctly what will be the future value of bitcoin. But be more practical and realistic, if you want to save your savings from inflation, then invest both in bitcoin and gold as they can hedge against inflation.

It's a good thing to take risk, but we should make sure that we are doing the right thing, invest by taking calculated risk, not by taking risk blindly.

[Patikno]

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?

Well, I actually regret holding fiat (especially fiat from my country), and I have been regretting it for a few years now. I have seen prices that were very low compared to today, even as far as I remember seeing it at $1,000 in 2016. Personally, I have no doubts about Bitcoin future, and strongly believe in its bright future. In fact, Bitcoin has dispelled all previous doubts, especially those who once doubted it. Doesn't the current Bitcoin price say it all?

By the way, I remember that in 2016, the exchange rate for 1 USD to IDR (Indonesian Rupiah) was around Rp. 13,000, but now it is around Rp. 17,000. So, I think there is no point in choosing fiat as a future savings, and Bitcoin should be the primary choice, right? I don't think anyone would disagree, because the Bitcoin exchange rate against the USD is also very different from what it used to be. Try to prove me wrong.

[Vaskiy]

Most of the country currencies experience the inflation at its highest, but people are getting used to it. Holding in terms of bitcoin is the right choice when taking into consideration the growth it has achieved along with the adoption and usage. By the time it is also necessary to consider what is happening around bitcoin with the big bag of bitcoin holders. Recently MicroStrategy CEO Michael Saylor taken a stand of Maybe sell bitcoin from never sell as a part of maximize return. When such incidents were happening around, we should also rethink of investing everything into bitcoin. on such note it is good to diversify and invest 70% into bitcoin and the rest in gold, fiat, bonds and other investments. This way there is no need for fear as we'll be able to handle the worst-case scenario.

[LogitechMouse]

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

What your friend say is true and TBH, there's always a chance for that. It could happen anytime. It can happen at the moment when nobody's expecting it to happen. We don't know if when it will happen OR will it happen. One thing's for sure though. There's always a risk on it.

It's not only you that's doing the same because I'm also doing it. The money that I'm putting on a bank is for emergency savings, and the rest? It's for investing but most of them are into Bitcoin and crypto. Now as for your question, this is where diversification comes to help. Diversify your money into different asset classes, and when I mean diversify, it doesn't mean that you will put on Bitcoin, Ethereum, Solana, etc. I mean is that put some on bonds, stock market, real estate and many more. In this way, the risk on you will be lessen just in case things like what your friend has said might happen. You will have a lower reward of course, but the risk is also lesser.

Diversification is the best solution. You said that "ALL" of your money are into Bitcoin. Don't put all of your eggs in one basket as they say, and that's applicable to you OP.

[yhiaali3]

We are thinking of bequeathing Bitcoin to our children after we die, and you are worried that Bitcoin might fail? I don't think you will live to see Bitcoin fail.

But in any case, if you are really afraid of the possibility of Bitcoin failing in the future, even if it is a small probability, the best way to avoid your fears is to diversify your investment portfolio or the assets that you intend to store in the long term. You can buy gold, for example, or even real estate and other properties that maintain their value over time.

[Razmirraz]

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

While Bitcoin is a very effective hedge against inflation, storing all your wealth in Bitcoin is a risky strategy as it is vulnerable to price volatility and potential system failures in the future. In my opinion, the best step is to use Bitcoin as a hedge, not as the only place or bank that holds all your income and savings.
Don't rely on just one instrument to store your money. Consider allocating some of your funds to other assets, such as gold, property, or other more stable investment options. This way, when you need emergency funds for your daily needs, you won't be forced to sell your Bitcoin when the price drops. I have also been involved in this industry for a long time, but in terms of investment portion, I always allocate funds not exceeding a certain percentage of the total amount of funds I have or in short, depending on the risk tolerance that I can bear.

[Mr.leeemzy]

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

I suppose it depends on how you handle risk, or if there's an alternative available to you that counteracts the effects of inflation in your country. Because if you compare, if you keep all your money in Bitcoin, there's a chance it could fail, however small. And if you keep all your money in your fiat currency, it will almost certainly devalue rapidly due to inflation.

Perhaps to minimize risks with Bitcoin, you should make other investments. By diversifying your investment portfolio, it's less likely that if one fails, you'll be left with nothing.

No matter how good he handles risks, it will be a complete disaster for some one to put all of his life saving investing in a Bitcoin that does not guarantee or has a 100% success rate so he rather even keep most of his investment in his Fiat currency and even invest in multiple ways in his fiat currency  because there is even more guarantee in that than investing in Bitcoins which can fail any moment. Also no matter the currency inflation in his country the investment being made will never be completely gone of lost..

[Outhue]

Honestly I am guilty of this too, I have most money I made thrown into Bitcoin every time, even the profits I make from my business, the reason why it doesn't bothered me is because I have another skill, I have a fashion business and it's most where I make most of my money from, how ever the future decides to play out nothing bad will happen, I am not living to have a lot of money that I can't spend, all I want in this world is easy life before I passed on. I am not worried a bit and I am sure that Bitcoin will still be here in many years to come.

[X-ray]

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

Same question could be asked to almost anything. What if hormuz suddenly opened and every country is dumping oils making it hit all time low, what if synthetic gold able to be produced with low cost, what if another GPU company replaces NVIDIA with breakthrough AI inference.

This kind of question is valid, but you are going to need to realize that everything have its worst timeline that might happen or not.

What most important is how you overcome it, if you think that could happen simply diversify. By focusing on the problem instead of solution you're doing nothing but overthinking it.

[Marvelockg]

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?

you do not just hold bitcoin blindly without a plan in place as to how to use it for your good and the reason why you are holding it in the first place. if you don't know what you want to achieve with your bitcoin holding then what you are doing is not different from saving in fiat. as a bitcoin investor. you first should have an investment goal and should be able to answer simple questions like " How long will i remain invested in bitcoin? by that time, how much would i have saved up in bitcoin and the last will be a plan as to how to leverage on DIP that will certainly come ones in a while.

As enthusiastic as i am becoming in bitcoin, i do not subscribe to investing in it without a plan. your life should not pause just because you are investing in bitcoin and there should be a proper plan in place on what to actually do with your bitcoin holding.

[As-Soon-As]

Honestly I am guilty of this too, I have most money I made thrown into Bitcoin every time, even the profits I make from my business, the reason why it doesn't bothered me is because I have another skill, I have a fashion business and it's most where I make most of my money from, how ever the future decides to play out nothing bad will happen, I am not living to have a lot of money that I can't spend, all I want in this world is easy life before I passed on. I am not worried a bit and I am sure that Bitcoin will still be here in many years to come.

There is no doubt that Bitcoin will definitely survive for a long time, because Bitcoin has survived for the past few years and will survive in the future. So I am holding my money in Bitcoin without any doubt, because I am holding Bitcoin with such a plan that I will not face financial crisis later.
Because investing in Bitcoin in the long term can definitely be profitable, that is why investing in Bitcoin is the best idea. If any person employs their own money according to the DCA method, they will definitely be successful.

[Rustam Meraj]

To worry when someone poses you such a question is absolutely normal especially when your own country, local currency is rapidly losing its worth and is experiencing massive inflation. Yet, always investing all your life savings in single financial product is risky step. Futures of the technology are never sure and even though you adore the technology, you are basing your financial foundations on assumption that you may not live long enough to see crash, which is no real financial plan. Far more secure and healthy solution is to diversify your savings and yet remain out of your weak local currency. You need not resort to returning to paper money in order to save yourself. You no longer have to keep all your wealth in single location, but you can divide wealth into other secure sources. This easy trick will not only keep your family out of high inflation today, it will provide you peace of mind.

[goldkingcoiner]

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?

What about the question of what if the fiat system fails? Because it has and will again and again. Let me prove it with an example. Kazakhstan switched from the Soviet ruble to its own currency, the Kazakhstani tenge, on 15 November 1993. The exchange rate at the time was 1 tenge = 500 Soviet rubles.

The transition was chaotic and many people lost all their money because they either could not exchange in time (very short time frame for exchange and banks were slow) or their money simply lost too much value. Either way, nobody was prepared.

Or another example: In Germany they exchanged the Mark for Euro 2:1 on 1st January 2002. While this was not as chaotic as in Kasachstan, the prices simply changed from Mark to Euro without considering the fact that Euro was twice as valuable.

So a carton of milk goes from 1 Mark to 1 Euro. And people lost exacty HALF of their savings value due to this absolute scam.

Nothing in life is safe. But Bitcoin is transparent and not controlled by any one government or group.

[Majestic-milf]

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.