Why is it more risky đ¨đ¨, if you don't own
#BTC ? đ¨đ¨đ¨
Bitcoin is a hedge against inflation. As fiat currencies like the US dollar continue to lose value, Bitcoin can provide a store of value that is not subject to the same inflationary pressures.
Bitcoin is a scarce asset. There will only ever be 21 million Bitcoin in existence, making it a rare and valuable asset.
Bitcoin is a global currency. Bitcoin can be used to send and receive payments anywhere in the world, without the need for a bank or other financial institution.
Bitcoin is a decentralized asset. Bitcoin is not controlled by any government or central bank, which makes it more resistant to censorship and manipulation.
Of course, Bitcoin is also a volatile asset, and its price can fluctuate wildly. However, for investors who are looking for a long-term hedge against inflation and a scarce asset with global reach and decentralization, Bitcoin may be a good investment.
Here are some specific examples of how Bitcoin can help to reduce risk:
Inflation protection: Bitcoin has historically outperformed fiat currencies like the US dollar, making it a good hedge against inflation.
Diversification: Bitcoin can help to diversify an investment portfolio by providing exposure to a different asset class.
Financial inclusion: Bitcoin can help people in developing countries to access financial services that are not available to them through traditional banking systems.
Censorship resistance: Bitcoin is not subject to the same censorship risks as fiat currencies, which makes it a valuable asset for people who live in countries with authoritarian governments.
Overall, Bitcoin is a complex asset with both risks and rewards. However, for investors who are willing to take on some risk, Bitcoin may offer a number of potential benefits.
It is important to note that this is not financial advice. Investors should always do their own research before investing in any asset, including Bitcoin.
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