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@ Vhtech777
2025-05-18 06:24:18
Bitcoin is often considered a low-risk store of value in the long term, but high-risk in the short term due to its price volatility. Here's a clearer breakdown:
Why Bitcoin is seen as a low-risk store of value (long term):
Scarcity: Only 21 million BTC will ever exist.
Decentralization: No central authority can control it.
Censorship resistance: It's hard to confiscate or block transactions.
Portability and durability: It's easy to move and doesn’t degrade.
Proven history: Over 15 years of uptime and growing adoption.
But short-term risks include:
Price volatility: It can drop 10–30% in a few days.
Regulatory uncertainty: Laws vary by country and can affect access or usage.
Custody risk: If you don't manage your keys well, you can lose your Bitcoin.
So if your time horizon is 5–10+ years and you understand self-custody, Bitcoin can be a very low-risk and powerful store of value. But if you need short-term stability, it's not ideal.