Now that interest rates are rising globally and liquidity is tightening, is Bitcoin still considered a dependable store of value, or is it more of a high-risk asset?
I’d really appreciate hearing from long-term holders how do you currently view Bitcoin in terms of financial stability?
The scarce truth is that there is no certainty here, it all has to do with the prices and your goal. Where you bought your Bitcoin and the purpose for which you bought it matter.
However, with respect to the past, Bitcoin was a hedge against inflation, but the past performance can never be used to judge the future outcome, especially when Bitcoin is now very expensive. It's easier when Bitcoin was still very cheap. Can you tell what the price of Bitcoin will be in the next 5 years? What if you bought it at $110,000 in 2025 for a 5-year cover against inflation, and in 2028, it gets to $140,000, and for correction's sake, in 2030, when you need your money, it moves back to $80,000, before moving higher to $170,000 in 2032 (2 years after you liquidated it)?
So, for me, Bitcoin is a very good asset, but as it moves higher in price, so is the risk and the reduced extent of trusting it as a hedge against inflation. For this, it's better for you to buy your Bitcoin as an asset without planning to hedge inflation and continue to HODL it.