Once we've proven that Bitcoin keeps rising every year, holding onto it seems risk free... this confidence is expected to persist as the asset continues to grow.
However, BTC remains volatile, and that's an inherent trait. I can say that the risk with Bitcoin is relative, depending on how people treat it. Everyone has a different perspective on this, and I can conclude that there are two types of investors who will view this either as a risky or non-risky asset: long term investors and short term investors.
Long term investors are always optimistic about the future based on their fundamental analysis... and daily price changes don't bother them because they not monitor short term price movements.
On the other hand, short term investors clearly see this as high risk, as daily candlestick fluctuations go up and down due to its volatility... those who don't have good trading skills may face losses because they consider too many calculations. This is the real risk because no one knows whether Bitcoin will go up or down tomorrow. It all happens spontaneously due to market conditions and circulating news.
Long-term and short-term Bitcoin investors are clearly divided. Its important to recognise that Bitcoin is a financial game-changer, but its not for everyone. Long-term investors have welcomed Bitcoin's volatility as an opportunity. They recognise that Bitcoin's worth lies in its potential to revolutionise wealth storage and movement in the next decades, not everyday volatility.
Now, on to short-term investors. The trip will be crazy, but volatility is where they find fun and profit. Not everyone has the stomach or strategy for this high-stakes game. However, to reject short-term trading as speculation ignores market analysis and good traders' human behaviour understanding.
Bitcoin's volatility, driven by market dynamics and news, is fascinating. Its about joining a financial revolution, not just investing. Long-term or short-term, risk is high. Bitcoin's price fluctuations are a sign of life in a market thats changing our concept of value and investing.