Quote from: Alone055 on November 02, 2024, 05:50:40 PM

Quote from: Smack That Ace on November 02, 2024, 04:26:30 PM

Most of the claims about bitcoin as a safe haven come from bitcoin investors and it is not yet globally recognized like gold. So if we're being realistic: we need to admit that bitcoin is not yet a safe haven.

I can't help but agree with this point. OP is referring to cryptocurrencies as being a safe haven which is even worse because altcoins are barely reliable for long-term investments, and when it comes to Bitcoin, it might have different characteristics, it might have the trust of the market being the best cryptocurrency because it has always been able to regain its value even after losing more than 60% or 70% of its value during bear markets. However, even calling Bitcoin a safe haven would be technically wrong because no matter what, it's still a volatile asset.

You can say that Bitcoin is currently one of the most profitable investment assets available because you can buy it during the bear market when the price is low and keep holding until it goes up again in the bull market and get profits that are better than many other traditional investment assets. As they say, when there is more reward, there will be more risk as well. The same is the case with Bitcoin because if you invest and it loses value, you will have your funds stuck until it goes back up.

These are the reasons why it's not recommended to invest everything you have in Bitcoin but only the funds that you can afford getting stuck for an unknown amount of time.

I get the feeling that people are thinking that whatever asset gives the highest return will be considered a safe haven or store of value. But technically, the concept of a safe haven doesn't work that way. Gold does not bring as much profit as bitcoin, but why is it considered the best safe haven today and recognized by the world for centuries? I think people can compare gold and bitcoin for themselves to know the most accurate answer but it seems people don't want to admit this truth.

Bitcoin is the most profitable investment and no one denies that but with its volatility and instability whenever the economy is in trouble, it cannot be a safe haven.