29 ms·
Bitcoin is a very volatile investment while people who keep money are looking for extreme safety. Because if they could accept just a bit more risk they could b
by lmilcin 6y ago
Bitcoin is a very volatile investment while people who keep money are looking for extreme safety. Because if they could accept just a bit more risk they could be investing in a lot other things with better returns like, you know, bonds.
So no, bitcoin is definitely not a replacement for cash deposit.
As to "lead weight", that is very good. There is enough people on HN to see through bullshit and understand Bitcoin for what it is or is not.
- argvargc 6y agoIt is very volatile yes, and over twelve years this volatility has returned a 3x on investment on average, every year. Conversely, for someone deciding between the two, holding fiat has been equally as volatile, and returned a ~66% loss each year by comparison. People looking for extreme safety might want to at least put a tiny bit into Bitcoin or some other crypto. Certainly, they'd be significantly "safer" now had they done so at any point over the past decade.
- Traster 6y ago>People looking for extreme safety might want to at least put a tiny bit into Bitcoin or some other crypto. This. This is why people put money in bonds and gold. It's not a get rich quick scheme, it's an uncorrelated asset. Which BTC absolutely might (heavy emphasis on might) be. BTC is a perfectly valid hedge, but beyond that it's speculation. At the start of 2018 BTC hit around ~17k, it took 2 years to get back to that price and the history of this asset means you can't even expect that to be predictive. So be careful.
- yuvadam 6y agoBitcoin is exactly the insurance policy you want on the possibility of fiat collapse. Also please point me in the direction of these "better-return" bonds.