A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks
Some investors are using their profits from Bitcoin investments to establish their business further or start a new business. In your friend's case, we are hearing a far different thing that your friend leaves their artwork business completely, which has been sustaining them for a long time, to begin depending on Bitcoin, which is volatile and unpredictable.
Folks with their reasoning. I find the action of your friend to be funny, really, because someone intelligent enough will think of expanding their businesses, rather than ending them completely, because of the profits they have made in the short term from Bitcoin. They now think that will serve them right not knowing that Bitcoin fluctuates from bull run to bearish market. If the investment is not strategic and is not sold at the right time, they will end up on the losing side until the green candlelight shows in a few years to come. They can be at a profit if they try to hodl for long term
Bitcoin is the only asset of its kind that has the potential to go from zero to six-figures, and investing maximum resources in it can lead to maximum growth of our assets. The returns that BTC has given in the past have made traditional markets look like dwarfs, the average returns annually are about 55% or even more, and the Sharpe ratios of BTC even outperform the S&P 500. Definitely, it's a very volatile asset and drawdowns of 30% or even more happen every few months, but these ups and downs are the cost of its exponential growth. If you believe in the future of Bitcoin and its unmatchable potential, then investing your maximum resources is not a rash decision, but it’s your bold conviction in it.