We can also be bullish about bitcoin, and believe that it is the best investment available, while still at the same time acknowledging the various risks.. execution risk and various intrinsic risks related to the asset itself.
Yes sir, optimism must be there, especially if we invest in the long term, then everything we focus on we must convince ourselves that this is the best and will provide many benefits in the decades to come. In theory or data that we have seen so far or the last 10 years, of course there are many risks and we must admit it, the big risk is trusting assets to third parties and we can stay away from it to store assets in our own wallet.
Believing that investing in bitcoin is the best choice is one of the good choices, because Bitcoin is limited, Scarcity, and many other things that Bitcoin has that are superior to Fiat or gold. Now talking about
Execution Risk, maybe I've just heard of it, it seems that this risk can be avoided by using the DCA Strategy where our purchase execution will be different at each price so that it provides an opportunity for an average entry to be at a cheap price. However, there is definitely a risk in every type of investment, so it would be good if we were able to avoid or minimize the existing risk.
I was thinking about execution risk related to guarding your private keys or maybe engaging in transactions that contribute towards government scrutiny... or keeping coins on exchanges or with other third parties. Think about how we choose to communicate inheritance, and if we might communicate to the wrong people too soon, and some people are not honest, or they could leak certain information to other not honest people.
There could be some various execution risks related to how you accumulate bitcoin, that result in opportunity costs, yet I was not really considering those as execution risks, even though surely the level of aggressiveness or whimpiness can contribute towards execution risks, and surely that can also relate to the strength of our cashflow management practices, which also could end up putting some or all of our BTC at risk.
We do not need to recognize and appreciate all possible execution risks or other extrinsic risks in order to appreciate that risks exist, and many of them can be mitigated but not necessarily eliminated, and some kinds of risks are more salient in bitcoin as compared to some other investment that might be made. If my house burns down, then the gold in the basement would still be o.k., but my paper wallets might not be, and if I have some back up systems, I might have had protected myself, yet i might have screwed up my backups or even made them either too complicated or perhaps too easy if I leave them in a vulnerable place.