Post
Topic
Board Economics
Re: Crypto is safe heaven specially next 30 days
by
Alone055
on 02/11/2024, 17:50:40 UTC
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.