The risk and reward of having Bitcoin - page 6.

GbitG

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

*The high volatility attach to it can be very risky.

High volatility is not based on all the risks, but it depends on your actions. If you choose the right reasons, you can turn this risk into a profit. That is, the best way to reduce volatility is to diversify funds. This means only DCA can protect you against volatility.

Quote

* It's almost near impossible to retrieve if sent to the wrong address.

This is the secret of Bitcion's quality and success: once you make a transaction, you cannot retrieve it, because if you reverse the transaction or retrieve it, then there is no bigger fraud and cheating system than Bitcion. . In my opinion, the process of irreversibility is the most prominent feature of Bitcoin, and because of this, Bitcoin is beyond the reach of fraudsters and hackers. Let us suppose that if Bitcoin has transaction retrieval, then people would have sent it once and retrieved it again, and like that, Bitcoin would be called a useless thing.

So it means to say that now we can't get rid of it by retrieving it; it's just what it is. Before making the transaction, you should verify it well so that you don't have to suffer any losses later.

btc78

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Quote from: Despairo on December 11, 2023, 03:10:48 AM

Saying high volatility is risky and making you rich at the same time doesn't make sense, if there's no volatility, how you can earn from your investment?

most people think bitcoin is terrifying because it’s volatile and when something is volatile its value is not stable and will keep on fluctuating the dramatic rise and low of the price make it hard for others to keep up but if you are a seasoned investor and you know how to read the market, you can take advantage of bitcoin’s volatility

AnonBitCoiner

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

*The high volatility attach to it can be very risky.

There is a risk in every domain but there is also some fixers exists for solving the complications. Volatility exists but why are thinking that volatility is bad characteristics of crypto market even it gives opportunity to buy lower and sell higher to intensify virtues of money.

Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

* It's not generally accepted by all.

Everyone can think well for himself and if someone is not accepting bitcoin then its not our headache because we are not giving money to others for investment so may be he has no such amount for bitcoin investment and perhaps he prefer another field of investment about which he knows well so we cannot judge other people without knowing the fact.

Viscore

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Quote from: mindrust on December 11, 2023, 07:44:45 AM

Every investment has its own advantages and disadvantages. Bitcoin isn't an exception.

You buy a house to make passive income but the tenant may skip his payments or damage the property. These things happen a lot. Phys gold might get stolen... FIAT gets eaten by the inflation. Stocks are volatile... Bonds are tricky as well. You may prefer to buy paper gold but then the banks raise the spread so much, they rip you off when you sell your position.

It is probably a good idea to have a diversified portfolio.

That would be the safest probably, if you lose at a single investment, others might also be in profits so you are still not at a total loss.

However, when it comes to bitcoin advantages and disadvantages, what OP tell is partly true. But you won't fall into its disadvantage if you know already how to invest in bitcoin and how to make it work and profitable. If you follow the basics in bitcoin, everything will come out fine and as long as you avoid being greedy but stay mindful on your investment, you will never be affected with its disadvantages.

Mary Roberts

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

There is a saying that what ever had an advantage also had a disadvantage, why am saying this is because most people especially the newbie's thinks when having Bitcoin the situation is always win win win. So I will be listing a few of the advantages and disadvantages of having it.
disadvantage of having it

*The high volatility attach to it can be very risky.

* It's not generally accepted by all.

* It can be stolen if your system is hacked.

* It's almost near impossible to retrieve if sent to the wrong address.

advantages of having it

* It can make you filthy rich during the bull run.

* It decentralized, no third party like banks and financial institution.

* It's a self custodian asset, the privacy is priceless.

* It's very accessible at any given point in time.

high volatility does make bitcoin investments risky, but also potentially lucrative. By noting that bitcoin is not accepted everywhere and is subject to hacking risks, you correctly point out important security aspects. At the same time, highlighting the possibility of significant enrichment, decentralization and privacy is what appeals to many.

I don't know if I missed some that I didn't mention.

so98nn

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That is interesting but with time you get to know it better. It's like riding on its volatility and understanding its importance over time. If Bitcoin weren't volatile then it would have been cheap right now. There is an indirect correlation that I find between them. Its volatility makes it a highly tradable asset on every exchange. The movement starts going bearish peeps are going nuts everywhere. Have you seen the volume going up and down every time this happens? Take the example of the halving period. This is like an amphora of richness when it is around. I agree that fees skyrocket, there is FOMO, and everything running at the same time but man that's what drives the price of Bitcoin. In addition to that having Bitcoin possession is a unique thing because as you stated in advantages, it can be an asset that can make you rich in any movement. By the way, you lose nothing until you sell anything. So it's all about the perspective.

yazher

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One of the most advantageous features of bitcoins is you can actually hide them from others without letting anyone know that you have them and you can walk on this earth by pretending that you are one the poorest people on Earth while in reality, you have thousands of dollars worth of bitcoins in your crypto wallet. And when something is not right concerning the security of your country or some natural disasters will happen, you can easily bring it out with you letting others know that you have that huge amount of money with you. This is where they failed to understand but we cannot blame each other since they were just ignorant and didn't know about its real importance.

TheUltraElite

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The disadvantages are not significant if you have been using bitcoin for some time now, yes for newbies coming from a fiat background it might seem difficult at the beginning but they eventually catch up. Fortunately I never ran into such troubles in my newbie days but I have read about many users here who messed things up. Government crackdown is one scary thing because we all have to abide by the local laws, I an hopeful that in future this might improve.

Acceptance will improve in future. This is from what I have been observing around bitcoin over the last few years in the news and media.

Fivestar4everMVP

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

disadvantage of having it

*The high volatility attach to it can be very risky.

The high volatility of bitcoin is where the money is, without volatility, it probably wouldn't have been possible to make quick profit from bitcoin, it's true that in the quest for a quick profit, some may encounter loses, but know it that, for as far as you did not sell your bitcoin, it will turn out profitable later.

So for me, this is not a disadvantage, the high volatility in bitcoin is one of the features that attracted alot of investors into crypto.

Quote

* It's not generally accepted by all.

Who cares if bitcoin is not accepted by, trade it with those that accept it and ignore those who don't, those who don't accept bitcoin today will come to accept it tomorrow, and by then, you will be the one selling bitcoin to them at your own choice of price.

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* It can be stolen if your system is hacked.

Even your fiat currency can be stolen if your system is hacked, scammers can get access to your private information, through which they can gain access into your bank account, and withdraw all your money.

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* It's almost near impossible to retrieve if sent to the wrong address.

Teaches you to apply carefulness in every thing you do, many times I've also sent fiat to a wrong account, and never got it back, even after complaining to the bank.

In conclusion, disadvantages of holding bitcoin aren't really disadvantages, it all depends on the angle you are looking at it from.

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

There is a saying that what ever had an advantage also had a disadvantage, why am saying this is because most people especially the newbie's thinks when having Bitcoin the situation is always win win win. So I will be listing a few of the advantages and disadvantages of having it.
disadvantage of having it

*The high volatility attach to it can be very risky.

* It's not generally accepted by all.

* It can be stolen if your system is hacked.

* It's almost near impossible to retrieve if sent to the wrong address.

advantages of having it

* It can make you filthy rich during the bull run.

* It decentralized, no third party like banks and financial institution.

* It's a self custodian asset, the privacy is priceless.

* It's very accessible at any given point in time.

I don't know if I missed some that I didn't mention.

I can't say these "detriments" or risks per se is particularly specific only to bitcoin. For example, anything that is hacked can be stolen from you, fiat digital money from your local banks, information you put out on the internet whilst you sign up for those surveys and shit, there's a lot of stuff that can be stolen from you and that is not only specific to bitcoin/crypto. As for the volatility rate of bitcoin and crypto, I say that's more like a double-edged sword cause this very fluctuations brought out by the volatility rate of crypto that also grants you these high price hikes that you love about crypto. And the even more crazy thing about this comparison is that, while most of the things you talked about in the disadvantage section can be seen in other investment types/ventures, the advantages are only specific to crypto.

It's quite crazy how bitcoin can be like this, but I'm not saying it doesn't have its fair share of downsides. Perhaps invest in more research next time to make a more compelling topic?

Aanuoluwatofunmi

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

*The high volatility attach to it can be very risky.

The risk does not include on its volatility, but the rate at which bitcoin Investors got themselves into taking risk in whatever thing they are doing, being volatile is not the risk, but understanding the way to abstain from taking the risk is what is needed to know and do.

Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

* It's not generally accepted by all.

This is not a disadvantage either, bitcoin can be used as a medium of exchange for goods and services at any point in time, there are many establishments that accepts bitcoin for making payments, it's a legal means of buying and selling items, a digital currency that is directly opposite the fiat traditional currency which is physical.

Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

* It can be stolen if your system is hacked.

Fiat can also be stolen, but with bitcoin, it has to be that you permitted this to happen, if not, no one can hack you without having a link that direct them towards you.

highalch

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Quote

* It can be stolen if your system is hacked.

I highly suggest you to diversify the custody risk.

Instead of one single cold wallet, multiple wallets, multiple exchanges and batched offramping, maybe even BTC-related stocks like MSTR or mining stocks.

ultrloa

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

There is a saying that what ever had an advantage also had a disadvantage, why am saying this is because most people especially the newbie's thinks when having Bitcoin the situation is always win win win. So I will be listing a few of the advantages and disadvantages of having it.
disadvantage of having it

*The high volatility attach to it can be very risky.

* It's not generally accepted by all.

* It can be stolen if your system is hacked.

* It's almost near impossible to retrieve if sent to the wrong address.

advantages of having it

* It can make you filthy rich during the bull run.

* It decentralized, no third party like banks and financial institution.

* It's a self custodian asset, the privacy is priceless.

* It's very accessible at any given point in time.

I don't know if I missed some that I didn't mention.

For High volatility you can do something to manage the risk that's why research is important so that you will know about certain conditions happening in the market.

Also for not accepted by majority of merchants I think there's no problem with it since you need to focus on those businesses that accept bitcoin since at the end they are the one who will get benefits for adopting bitcoin and also we don't also have a problem with that since there's still a lot of merchant accept it and we can cashout our coins at anytime we want.

For issue not to be retrieve if sent to wrong addresses then its really up to us on how we handle it that's why we need to do a lot of checking as many as we can to avoid sending it to wrong addresses.

On advantages I guess its automatic that we can get that benefits that's why instead of looking on its negative side we must focus on things we can benefit from since for sure this is also what those investors looking at and future is really good with bitcoin since currently to many big institutions is adopting it.

.gustafson

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Bro, you're preaching to the tired choir. Bitcoin's the drama queen of currencies. Yeah, it can make you a crypto king during a bull run, but that volatility is like trying to dance on a tightrope. And don't get me started on the "not accepted everywhere" thing – it's like having a VIP pass that only works in certain clubs. But hey, being your own bank and the privacy vibe? That's the Bitcoin paradox for you.

mindrust

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Every investment has its own advantages and disadvantages. Bitcoin isn't an exception.

You buy a house to make passive income but the tenant may skip his payments or damage the property. These things happen a lot. Phys gold might get stolen... FIAT gets eaten by the inflation. Stocks are volatile... Bonds are tricky as well. You may prefer to buy paper gold but then the banks raise the spread so much, they rip you off when you sell your position.

It is probably a good idea to have a diversified portfolio.

EarnOnVictor

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

*The high volatility attach to it can be very risky.

* It's not generally accepted by all.

* It can be stolen if your system is hacked.

* It's almost near impossible to retrieve if sent to the wrong address.
-snip-

Thank you for the advantages you associated with Bitcoin which I have already snipped, there is no need to comment on them anymore...

...But for the disadvantages, there are two things all the above supposed disadvantages have in common, and they are "mistakes and ignorance," except for the hacking part which can happen to any system as long as it's online. Therefore, it's not peculiar to Bitcoin but all assets and services online.

About the high volatility, I see this as a blessing, not a disadvantage as you claimed. The volatility means more money for experienced traders and investors like me. And for acceptance, it comes gradually, Bitcoin is still very new, it can't be accepted by all at once and it's not all services you see online that is accepted by all. Lastly, about the retrieval of the coin if sent to a wrong address, while that's the fault of the person, also note that it is the sacrifice we must all pay for the privacy and decentralization of Bitcoin.

benalexis12

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I also believe that, due to the volatility of bitcoin, we can also make money, right? It is said in the quotation that "no pain, no gain." There is also no successful person who did not make a decision to face the risk.

Now, when it comes to Bitcoin, it depends on each individual if they are ready to face the risk that they can experience when they invest in it. There are others who invested because they were persuaded by a friend who was misinformed about Bitcoin, so others fail in the end.

Faisal2202

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Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

disadvantage of having it
*The high volatility attach to it can be very risky.
* It's not generally accepted by all.
* It can be stolen if your system is hacked.
* It's almost near impossible to retrieve if sent to the wrong address.

You are right, but BTC still better than alts or any other cryptocurrency or digital asset. And being a BTC enthusiasts I will say it is also better than fiat, because our funds in fiat can also be stolen if the system got hacked, and we can send funds mistakenly from one place to another even in fiat. But we don't have to face the first two disadvantages in fiat.

Quote from: Barikui1 on December 11, 2023, 02:53:49 AM

advantages of having it
* It can make you filthy rich during the bull run.
* It decentralized, no third party like banks and financial institution.
* It's a self custodian asset, the privacy is priceless.
* It's very accessible at any given point in time.

I think you have some misconception about BTC, it can not make you filthy rich unless you are one of the early adopters, like from the years of 2010 to 2015. I still consider ourselves as early adopters but in compared to the 2010 to 2015 we are not. Well, the point is, it can't make us filthy rich until the next 10 ro 20 years.

I do agree with other factor by the way. Well, the point is, we should not judge any currency on the basis of money it can make for us, because many people consider BTC as currency while other assume it as asset. Both have huge difference between them.

cheezcarls

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Been there many times in riding the roller coaster wave on Bitcoin. Been holding BTC since last year after doing DCA with my extra “not beer” money.

I am aware of the risk and rewards in holding Bitcoin for long, but I just have a great feeling about it as a long term thinker.

Now currently around $42.3k, I’m actually at a nice profit where I bought BTC somewhere between $19k to $23k range. But I didn’t sell my BTCs as I am in no rush and I just live within my means by strict budgeting even for Holiday season.

Even if there are more sell-offs earlier and even almost touching $40k, I don’t mind as I understand there were many who wanted to TP to spend for the Holidays and we cannot control them.

I really appreciate the potential risks and rewards of holding BTC as it’s dominance is way higher and it may continue until next year.

lombok

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In my opinion, crypto cannot be hacked as long as we understand and know how to store Bitcoin assets correctly. Most hack cases are due to the user's own negligence.

Bitcoin is about accuracy, thoroughness and our own management of it. We are the bank itself. So, sending and storing errors are borne by ourselves, unlike the bank, if something goes wrong with the customer's funds, it is the bank's fault and the bank is responsible for it.

Topic: The risk and reward of having Bitcoin - page 6. (Read 1098 times)