Topic: The risk and reward of having Bitcoin - page 2. (Read 1098 times)

Argument to disadvantage 1: Volatility can be to your advantage, volatility means that you can get in because the price is going down sometimes and then going up sometimes which means that you can afford it if you can wait and you also don't need to worry about the risk of volatility if you're in bitcoin for the long-term hodling, you're always going to win in the long-term with bitcoin.

Argument to disadvantage 2: It's not really a disadvantage because that's what makes it sought after because it's prohibited sometimes. The best analogy I can think of is drugs, the more we restrict the supply the more the demand will pay for a higher price.

Argument to disadvantage 3: It's not the fault of bitcoin, it's a me problem. If you're careless about your security, you're likely to be vulnerable to attacks.

Argument to disadvantage 4: Near impossible isn't the word and even with that word, that means that you can still get it back unless it's sent to a burn address which is impossible.

Clarification to advantage 1: It will depend on how much you've invested, it will definitely make you filthy rich if you've invested hundreds of thousands and the price gone up to about a 1000% but if you've invested only in satoshis but a constant one, it's not going to make you that rich.

Clarification to advantage 3: It's pseudonymous, not that anonymous as many like to think. But still it's enough to keep your privacy.

Clarification to advantage 4: In a technology oriented world it is definitely but in a desert or a mountain with no electricity, not really.

This is not wrong because keeping the Bitcoins we own safely is almost the same as keeping our own money safe when we don't store it in any bank. Apart from that, I also thought that saving money in the bank would not be completely safe and could even be said to be not very safe, so for now I also mostly keep it to myself and only put what is necessary into the bank. The rest I just keep Bitcoin as my savings by keeping it safe and don't use it if I don't need something very urgent like needing money and so on.

OP, you have mentioned a lot of things but you should know that bitcoin is for the careful people, before you ever think of investigating in bitcoin you have t think of many things so that you will understand and adapt to the system, I have thought about the volatility of bitcoin, I think this is one of the reason why bitcoin is still in a existence, upward and downward price movement makes people to believe the bitcoin is real and it has come to stay, I have checked very well know market that has good potential that does not fluctuate in price, despite the disadvantages you listed the merit of bitcoin that even attracted me to it is the decentralized nature of it.

It has its good side, it has its bad side. Accepting bitcoins is where I see the most benefits.

I give example by myself Bitcoin is illegal in my country, but I have not faced any difficulties since I accepted Bitcoin. I recorded my wallet accesses on paper, which is very unlikely to be lost. And if I do bitcoin transaction then I check 1 to 2 times the address to which I will do bitcoin transaction.



You forgot to add some features. If I record my wealth in bitcoins then people will definitely have less idea of ​​my wealth. Currently demand for fiat money is declining, and money is not safe in banks. So if I record my assets in Bitcoin, I control my assets.

Indeed, volatility can be a great way to make money for people who understand how markets work and are willing to take on risk. You're right; acceptance is growing, and online transfers can be used in places where offline acceptance is still low.

When it comes to safety, your focus on being alert is very important. Yes, hacks are a problem, but as you said, they can be lessened by being careful and using strong security measures. Also, your measured view on how decentralized Bitcoin is is right on the mark. Even though not all sites that work with Bitcoin are decentralized, that doesnt change the good things that Bitcoin can do. You said it right—knowing and understanding the world of cryptocurrencies is key.

I would have to disagree though, if we are going to compare Bitcoin the rest of the altcoins, it's volatility is nothing. Just look at Bitcoin, -38% from it's last ATH, as compare to ETH, which is around -55%. So it means that we are moving better and volatility is less. Besides, not sure if you have heard about pump and dump scheme in most of the altcoins, and I will say that is not applicable to Bitcoin as there are no whales that can manipulate the price.

For a Bitcoin wallet in a mobile phone though, just remember that your phone might be connected anytime to the internet and even if you have those kind of securities, you know that hackers can still find a way to get into your wallet. That's why I don't advise Bitcoin enthusiast to used a mobile phone as there storage.

The opposite is true, Bitcoin is one of the least (if not the least) volatile cryptocurrencies in the market, excluding stablecoins that is. Generally speaking, the less trading volume - the more volatility.


There are many bitcoin wallets with different security features but wallets don't have much to do with the safety of the Bitcoin network.

Bitcoin had huge volatility as compared to all the coin in the cryptocurrency market.This was the biggest reason for the bitcoin survival in the bitcoin over the decades in the market.The second reason was bitcoin can be traded with any price and sell at the highest value as the profit because of the decentralised behaviour of bitcoin.If any new people come to inverse in the cryptocurrency will choose the bitcoin as their first option.The bitcoin wallet had huge secret security system like 2factor authentication which prevent one to access to your wallet in mobile phone.

I totally agree with you, When it comes to cryptocurrencies like Bitcoin, the responsibility lies with us as users to ensure the security of our assets. It's all about being accurate, thorough, and taking the necessary steps to store and send Bitcoin correctly. Unlike traditional banks, where the responsibility lies with them, with Bitcoin, we become our own bank. This means that any errors in sending or storing Bitcoin are solely our responsibility. It's crucial to be diligent and well-informed to minimize the risks and keep our assets safe. Thanks!

Bitcoin has the potential for significant price appreciation, which means it could increase in value over time. It also offers the possibility of financial independence and the ability to transact without intermediaries. However, it's important to be aware of the risks as well. Bitcoin is known for its price volatility, which means its value can fluctuate quite a bit. There are also security concerns, as hackers and scammers can target Bitcoin users. It's crucial to do your research, stay informed, and take necessary precautions to protect your Bitcoin investments.

When it comes to my own experience and insights on Bitcoin, I have found it to be quite interesting and dynamic investment. I have seen the potential for significant returns, especially during periods of price increase.However, I have also learned the importance of being careful and staying informed about market trends and developments. It's crucial to have a secure wallet and take necessary precautions to protect your Bitcoin. Additionally, I have found that educating others about Bitcoin is a great way to spread awareness and understanding. By sharing information and resources, we can help our community make informed decisions about Bitcoin.

Yh, everything with an advantage also has its disadvantage, and profitable things comes with their risks. Managing risks can be attributed to having appropriate knowledge about the risks attached.

For high volatility, hodling would be best here and a financial adviser would also help.

Not generally accepted, save some, trade some for your local currency.

Hacked system, use hard wallets.

Sending to wrong addresses, literally double check addresses before sending.
These are basic knowledge, there are many more ways to cope with the risks Bitcoin comes with.

BTC's volatility isn't even a disadvantage if you know how to utilize it well.

BTC isn't accepted by all but many are into it now. Plus you can always transact online if you are struggling offline. Hacks can be prevented if we are very careful. The last one might only be the real disadvantage of BTC. But again, we can prevent this, if we are very careful.

The first one in the advantage list seems exaggerated. I think it's enough to say that we can earn a profit with it if we know what we are doing. BTC is decentralized but some platforms related to it aren't. There are still people who don't care about it. But what important is, they can still benefit with BTC.

For those who know, it's clearly different, but for those who don't know, perhaps the function of both is considered the same, that's why I say that when people want to get involved in investing, they should learn to understand it first so they don't fail to understand the difference between the two. The volatility of bitcoin can bring someone to the stage of panic, even people who have been investing in bitcoin for a long time also experience panic in this condition, but the difference is that they know how to overcome it.

Therefore, it is very important to learn first before jumping directly into investing so as not to experience losses due to shallow knowledge. If investments are made correctly, Bitcoin will not harm anyone as long as people know how to run it or store it in a much safer wallet.

Security is indeed quite important because without us realizing it, a small mistake can result in someone experiencing big losses, especially if the wallet used does not have a good and guaranteed level of security. I found every solution on this forum and was lucky enough for those of us who know this forum to learn to understand how to invest and get to know a wallet that is much more guaranteed in terms of security.

Totally agree with you. The first point in investing in bitcoin is the need for basic knowledge about bitcoin, especially about storage and security levels of bitcoin wallets because without knowledge our investment is useless, even when bitcoin experiences a decline it makes us panic and without thinking we sell bitcoin. Even though bitcoin has high volatility, if we have sufficient knowledge we will not sell it and make bitcoin a long-term asset.

Actually, there are many places to learn about Bitcoin in this technological age, but sometimes many people are too lazy to read and find out. They only know bitcoin as a short-term investment, but few know that bitcoin is an investment for the future. And of course, without their knowledge, they will think that storing bitcoins on an exchange is safe, even though this is very dangerous. So in essence, investing in Bitcoin is very important in science.

The volatility of Bitcoin has prove to be only a disadvantage on short run, because when we look its history, we see the price has been constantly increasing along the years, thanks to the volatility. For that reason, I conclude volatility is in fact another advantage of Bitcoin, which has already proportionated many investors to grow their small investments into considerable sums of money enough to purchase cars, houses, apartments and fulfill their dreams, while more wealthy investors have become millionaires thanks to the digital currency.

Volatility can be a great ally of your investments, if you are a patient investor who focus your goals on long term. Although it can disastrous if you are impulsive and addicted to follow price fluctuations in a daily basis, what will inevitably trigger fear, uncertainity, anxiety and a desperate impulse to sell your coins before the right time.

We should all understand that without up and down in life there is movement (profit or loss). The volatility of bitcoin brings about the sweetness of the game. as we all know, everything in life is a game.

Every successful investment comes first with knowledge of it. Most of the listed disadvantages will be minimized if the investor or holder of bitcoin is aware of the pros and cons of bitcoin.

if we look it from another angle, alot of investors are attracted to bitcoin because of its high volatility, which can make profit within short period of time.
The bottom line is knowledge help you to stay ahead of time in the game of Cypto.

High volatility is the only reason people are attracted to Bitcoin from various trading platforms. While some see this volatility as a risk, others love Bitcoin for it. I think those who can exploit this volatility well will succeed here. Those who invest definitely have to take that risk. All the difficulties you have shown can happen if an investor decides to invest in Bitcoin without having sufficient knowledge of Bitcoin or if he does not know well how to store Bitcoin and keep it safe. We have to remember that the work that everyone can do is not more valuable. Bitcoin is a highly volatile currency for those who know this and with having the risk investing in it, Bitcoin will be a golden opportunity for them.

No matter how you put it, the advantages is still more better than the disadvantages. Volatility you made mention of was not specific. We have low and high volatility.
High volatility: it gives us the room to make profit when the market is green. Or better still high volatility is the reason why most investors put there money in bitcoin. I think if no high volatility no body would have been able to invest in bitcoin or crypto currency.
Low volatility: it's gives people the room to invest when it's dip. Low volatility helps many who could not afford to buy Bitcoin when it's high to buy when it's low and makes profit when it's high and that is the more reason why people love bitcoin. If it were to be no volatility like USDT I don't thing people would have loved to buy it.

Yes I quit agree with you, but that is the need of CEX. You can convert it to via Fiat and use for other porposes. Many people who are in this forum here, in there country they don't accept crypto currency but still they are bitcoiners.

It can only be hacked or stolen if you reveal your pass phrase to people either from your carlesness or by mistake.
Yes that the dreaded part in all. Since it is not showing the name of the recipient like local bank, that is the more reason we have to be extra careful when sending bitcoin to an address. Make sure you cross check and be sure before sending bitcoin to and address before sending it to a wrong address.

The problem with the op is that they only see BTC as an investment opportunity, so if you want to use BTC as an investment, you must be ready to handle the risks, because there is no investment without risk. But if you are looking at BTC for what it was created, and that is as a p2p electronic cash, then the major risk is losing your coins, especially when the person does not have the knowledge needed to store it safely.
I understand that you are enthusiastic about BTC halving, but if you are buying BTC because of only that, don't forget to buy just what you can afford to lose, and also learn the basic about the network so that you do not lose your funds.

yes the high volatility inherent in bitcoin definitely causes risk, but that is what makes people interested in btc because of the high volatility or because of price fluctuations.

In my opinion, even though it is not generally accepted, it is certainly not a problem, in fact we are the lucky ones who got to know BTC before it was popular, so we have good potential in the future.

Of course, theft always exists in the online and offline world and of course that is the risk of having property and of course any property that if we cannot protect it has the potential to be stolen, including BTC. and of course we must do our best to protect our assets.


Of course, there is always a risk in any case, so what must be prioritized is knowledge, experience and being ready to take risks.