Post
Topic
Board Bitcoin Discussion
Re: Why do many people call Bitcoin "digital gold"?
by
RainbowKun
on 26/07/2021, 03:48:22 UTC
Indeed. No investment has no risk.
Sometimes the risks reflect the profits potential. For example, Bitcoin offers potential big profit but it has a big risk as well. While for Gold, the potential profit probably isn't as big as Bitcoin, but the risk is relatively smaller.

A simple explanation may be like the image below.
Low Risk Low Return and High Risk High Return

Gold is indeed a low risk investment.

There is no type of investment that is "Low Risk High Return", even if someone offers it, usually the investment will end up being a fraudulent investment or investment fraud.

Yes, thats it, simple. If someone invest in high risk solution and trying to get fast and big profit that is way of gambling. nothing to add, fully agree.

Yes,there is no type of investment that is "Low Risk High Return".The risk and return of any of our investments are directly proportional. This is the most basic law. If we want to obtain the safest investment, we should not expect it to bring us high returns. The main reason why the crypto world attracts many people to participate is that it can create very high returns, but high returns also mean high risks. In the process, many people lose all of their funds. The control of investment behavior has a very high relationship with everyone's cognitive level. For us, the only way to reduce risk is to continuously strengthen our own learning and improve our cognitive ability.