[Edited out]
The point is if we invest in bitcoin of course discretionary income must be used as capital, and besides discretionary income I personally do not recommend it, let alone emergency funds. Because even though bitcoin has good potential in the future, but if we invest in bitcoin using funds other than discretionary income of course that action is not healthy for your mentality and mind. Because money that is hot or non-discretionary, if used to invest in bitcoin, of course the results have a less good possibility. Like there is an urgent need that requires us to sell our bitcoins and finally our bitcoin accumulation becomes chaotic. That is why investing in bitcoin must use cold funds or discretionary income only.
In addition, if here I say that bitcoin has no risk I am very wrong. Because it is certain that all investment assets have risks, whether large or small, and so does bitcoin. That is why when investing in bitcoin you have to use discretionary income, this is an effort to minimize what is called risk. Although I personally believe that the risk of investing in bitcoin is not as great as other investment assets. But even so, we must remain prepared to face these risks and minimize them.
Every business has its own risk but what really matters is the extent of risks to its benefits. However, bitcoin risk is far minimal when compared to other other cryptocurrency and/or other investments out there.
Some of the most alarming noticeable risks include
*Extremely volatile price fluctuations.
*Government regulatory uncertainties.
*Potential of scams (some platforms are more secure than others).As published this morning;
These are factors already understood by majority of bitcoin investors in which Extreme Volatility is a basic necessity for a possible ATH which is the hope of every bitcoin investor. Government regulations against bitcoin also is gradually becoming a thing of the past in some developed countries of the world. In US, one out of every five persons has a crypto asset and majority of these crypto assets are in bitcoin.
Potential scams in bitcoin could also be regulated through improved safety measures and using only trusted exchanges.
https://newsnationnow.com/business/your-money/crypto-investment-risks-benefits/These three things are indeed the main risks for investors in bitcoin. But I personally am not too worried about the risk of price fluctuations in bitcoin, because we know that bitcoin is a digital asset that is currently popular and not a few are also trading in bitcoin. So price fluctuations are a natural thing to happen to bitcoin, and this might be a little worrying for traders, but for a bitcoin investor like me, price fluctuations are not something to worry about. Because my goal in investing in bitcoin is not for now but for the future. So why bother thinking about the present if our goal is in the future.
Then about the risk of fraud, I personally am also not too worried about this risk. Because as long as we are vigilant and not tempted by things that are disguised as profits or other things, I think our bitcoins will remain safe. That is why we must store bitcoins in a non-custodial wallet that has been proven to be safe. And don't be fooled by people who promise or offer to multiply our bitcoins, because as far as I know, fraudsters usually do cunning tricks like that. So the point is to keep thinking realistically and also be careful.
And about the risk of government regulation, maybe this is what can be a little scary, because if it's a matter of government, it's usually complicated. But even so, I think in this sophisticated era there are many ways so that our bitcoin ownership is not detected by the government. And besides that, currently Bitcoin seems to have become an asset that is no longer foreign to the majority of countries, so I am sure that in the future Bitcoin will truly become an asset that is approved and permitted by all countries in the world.