Is Bitcoin Safe to Invest | Safe Long-Term Investment or Bubble Risk? - video Dailymotion

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Is Bitcoin safe to invest in 2025? 🚀 With the market heating up again, millions of investors are asking whether Bitcoin is truly a safe investment or still too risky to touch. Bitcoin has been called “digital gold,” but it has also faced crashes, regulation battles, and constant volatility.  In this video, we’ll break down the truth about whether Bitcoin is safe to invest. We’ll cover its track record, why institutions are backing it, how regulations are shaping its future, and the risks every investor needs to understand. You’ll also learn why many see Bitcoin as a hedge against inflation and how to invest smartly without falling into common traps.  Should you buy Bitcoin today, wait for dips, or avoid it altogether? Stick around as we explore both sides — the safety, the risks, and the long-term potential of the world’s biggest cryptocurrency.  👉 Subscribe for daily alpha on crypto market trends, bold Bitcoin predictions, and altcoin gems that could 10x your portfolio! – https://www.youtube.com/channel/UCpjN8bNE-CoAgpfMatghM9g  📧 Email: cryptorobothelp@gmail.com  💰 Affiliate Links  Sofi Checking & Savings – Get $25 free ➝ https://www.sofi.com/invite/money?gcp=16a53d0f-b4b2-441d-9100-cfb506305260&isAliasGcp=false  Sofi Investing – Free $25 in stock ➝ https://www.sofi.com/invite/invest?gcp=ab31edd8-701e-4109-9225-51b41e35d246&isAliasGcp=false  Coinbase Exchange – Earn up to $300 BTC ➝ https://coinbase.com/join/YPUQLCY?src=referral-link  Tracking Tools – CoinGecko | CoinMarketCap  Trading Tools – Get $15 off TradingView ➝ https://www.tradingview.com/pricing/?share_your_love=cryptonextsteps  #Bitcoin #BTC #CryptoNews #CryptoInvesting #Blockchain #CryptoMarket #CryptoUpdate #DeFi #CryptoAdoption #CryptoBeginners #DigitalGold #Ethereum #CryptoTraders #BullRun #Altcoins

Transcript

00:00welcome back to the deep dive today we are tackling a question that's uh really evolved

00:10over the last decade or so it's gone from this niche thing people talked about online to well

00:15a major boardroom discussion point the question is is bitcoin btc truly a safe investment it's a

00:22fascinating question because the narrative has shifted so dramatically right when bitcoin first

00:28popped up it was easy to write it off as you know magic internet money kind of a joke almost

00:33exactly but look where we are now fast forward to today and suddenly we've got regulated spot etfs

00:40trading huge volumes we have major corporations holding billions in btc on their balance sheets

00:47and even nation states integrating it like el salvador it's achieved this status that well many

00:52analysts are now calling it an institutional grade asset which is quite a statement so our mission

00:57today is to cut through all that noise look at the actual data the sources we've gathered and

01:02really figure out what safe even means when you're talking about something like bitcoin a decentralized

01:07digital asset and that's the core tension isn't it the inherent contradiction we need to address

01:12right up front which is well this growth into something institutions are comfortable with

01:17is happening against this backdrop of frankly massive price volatility huge swings swings that would just

01:25immediately disqualify any traditional asset from being called safe and then you layer on the history

01:31of major exchange hacks gox ftx the list goes on and the constant complex regulatory battles happening all

01:39over the world all of these things really cloud the picture when you try to assess its safety so our mission is

01:45clear then we're going to unpack what safe means specifically for bitcoin looking at both sides

01:51exactly we'll analyze the very real risks in the ecosystem right but also juxtapose those against this

01:57uh almost unprecedented resilience of the underlying technology the protocol itself that our sources keep

02:03highlighting it's a deep dive for sure okay let's get into it before we can even decide if btc is safe

02:09we kind of need a baseline right a working definition of safety when you think about traditional safety

02:14and finance maybe federally insured savings accounts or conservative government bonds even some really

02:20stable blue chip stocks that definition is all about predictability stability low volatility capital

02:29preservation primarily right and that framework well it just breaks down almost immediately when you try to

02:36apply it to crypto doesn't completely it fails because it doesn't capture this fundamental tension

02:40we mentioned the battle between price volatility and long-term resilience explain that a bit more

02:46okay so in traditional finance if an asset jumps around wildly in price day-to-day or month-to-month

02:52it's instantly flagged high risk unsafe don't touch it if you want stability and that short-term volatility

02:58is bitcoin's most famous or maybe infamous characteristic infamous is probably right for many it's absolutely

03:04true i mean our data clearly shows btc is known for these crazy price swings 20 30 sometimes even 50

03:11within just a few months unthinkable in traditional markets for a safe asset yeah if your 401k or your

03:17savings account did that you'd be panicking right right so by those traditional metrics the ones that

03:22prioritize keeping your capital steady and maybe earning a small stable yield bitcoin is absolutely not

03:28reliable short-term store of value period period no argument there on the short term but and this is

03:35the fascinating part there's this counter narrative this historical resilience that traditional finance

03:40frameworks just don't really have a category for meaning its ability to bounce back exactly look at

03:44the history the major crypto market crashes you had 2013 where the price dropped what over 80 percent

03:50devastating at the time then the 2017 crash after that huge bull run the correction in 2021 after the

03:55pandemic boom and the really severe bear market of 2022 with the ftx collapse and everything else okay

04:02bitcoin has historically speaking recovered from every single one of those catastrophic drawdowns

04:08so far at least it finds a new bottom and eventually clungs back right and this suggests a completely

04:14different kind of long-term stability it's not built on its day-to-day price which is chaotic it's built on

04:20something deeper its fundamental network structure the protocol itself its scarcity okay that's a critical

04:28point and it brings us to another really important distinction the sources make about security we have

04:33to separate the asset itself the core bitcoin protocol from the infrastructure around it the user layer yes

04:41this is absolutely the crux of the safety argument from the pro bitcoin side the fundamental technology

04:47bitcoin's core blockchain ledger yeah it has never been hacked never in its entire history not once

04:53not in a way that matters no flaw has ever been found or successfully exploited to allow someone to

04:59say double spend coins or just create fake bitcoin out of thin air the core ledger is intact how do we

05:05measure that security getting stronger well we can look at the hash rate growth that's a key metric our

05:09sources point to showing how the computational security of the network has just exploded over time okay for

05:14listeners maybe less familiar can you quickly break down what hash rate is and why its growth matters

05:19so much for this safety discussion sure so hash rate basically measures the total combined computing

05:26power that miners worldwide are dedicating to processing transactions and securing the network think of it

05:32as the network's defense budget in computational terms the more power the harder it is to attack

05:38precisely and the sources show this power has grown exponentially to actually stage what's called a 51

05:44percent attack where some malicious actor tries to gain control of enough computing power

05:49to rewrite the transaction history which would be catastrophic it would but the cost to do that

05:55now would be astronomically high we're talking likely billions of dollars per day just for the energy

06:00and hardware it's become financially impractical for any rational actor and any attempt would likely be

06:06detected very quickly so higher hash rate means more security much more security it makes the network

06:11incredibly robust at its core level okay so the core asset the protocol level is secure it seems like

06:19a strong argument but the problem is how we as investors or users actually interact with it right

06:25exactly the risk shifts entirely when you move up from the protocol to the user layer things like

06:30personal wallets personal wallets yes but even more commonly the centralized exchanges where most people

06:36buy and hold their bitcoin these points of access and custody they have been hacked repeatedly that's

06:42where the big headlines come from that's where the perception of risk really takes root for the

06:46average person it's not the blockchain itself failing is the platforms built on top of it so we're forced

06:52to recognize this critical finding from the sources yeah the asset bitcoin itself is mathematically secured at its

06:59foundation but the system of access how you buy it sell it store it has historically been vulnerable

07:06prone to human error mismanagement outright fraud sometimes and the risks inherent in any centralized

07:12system which really forces us to redefine safety doesn't it it's less about guaranteed price stability

07:17and much more about protocol integrity the reliability of the code and critically your ability to actually

07:23maintain control over your own private keys self-custody becomes a huge part of the safety equation

07:31okay so let's shift gears slightly let's move beyond the noise of the daily price swings

07:35and really focus on those qualities that give bitcoin its hard money status according to proponents

07:41these are the characteristics people point to as its inherent safety mechanisms the things that don't really

07:45care about short-term volatility exactly and the most fundamental one the one that makes it so different from

07:51traditional money has to be scarcity the fixed supply precisely unlike government issued fiat currency

07:58which can theoretically be printed infinitely and often is right bitcoin has a mathematically fixed and

08:04verifiable supply cap only 21 million bitcoin will ever exist full stop and this principle this hard

08:11money idea is often cited as its number one intrinsic safety feature especially against inflation absolutely

08:17think about it in a world where central banks globally have engaged in unprecedented quantitative easing

08:24basically creating trillions of dollars euros yen out of thin air devaluing the existing currency

08:31yes diluting the purchasing power of money held by citizens bitcoin's absolute mathematically enforced

08:37scarcity offers this predictable anti-inflationary property that while traditional assets even ones considered

08:45safe like bonds often lack because their value can still be eroded by inflation what's the mechanism

08:51that actually ensures this scarcity is maintained over time and why is that structure considered so

08:55much more compelling than say the u.s dollar which is backed by the government the core mechanism is

09:00called the halving it's built right into the bitcoin code approximately every four years the reward

09:04that miners receive for validating new blocks of transactions gets cut in half so the rate at which new

09:09bitcoin is created slows down over time exactly it's a predictable programmed supply shock that happens

09:16automatically this makes the inflation rate of bitcoin completely transparent and mathematically guaranteed

09:22to decrease over time approaching zero as we get closer to that 21 million cap estimated around the year

09:292140. contrast that with fiat with fiat currencies a central bank can migrate and just decide sometimes

09:35overnight to inject trillions into the system based on economic conditions or political pressures there's

09:41no mathematical certainty for many people who are worried about long-term currency debasement that

09:47programmed scarcity of bitcoin that freedom from arbitrary inflation by decree is the ultimate safety feature

09:53they're looking for okay scarcity is one pillar then there's decentralization we hear that word thrown around

09:59constantly what does it mean practically how does the fact that there's no ceo no central company running bitcoin

10:04translate into actual safety for someone listening especially when we consider government could

10:08theoretically try to ban it that freedom from third-party control is absolutely crucial decentralization

10:14essentially means there's no single point of failure technically or politically both technically the network

10:19runs on thousands of independent computers nodes all over the world all validating the same ledger

10:26you can't just shut down one server and kill bitcoin and politically politically if a powerful government

10:32say the u.s or china decides to ban bitcoin they can certainly make it difficult to use within their

10:38borders they can target exchanges miners maybe try to block access but they cannot shut down the global

10:43network because it doesn't reside in any one jurisdiction so it offers resistance to censorship procedure

10:49exactly if you have deep concerns about the stability of the traditional global financial system or the long-term

10:56solvency of government-backed debts and currencies bitcoin offers this kind of escape valve it's

11:02mathematically secured globally distributed and highly resistant to censorship or confiscation assuming you control

11:08your own keys for some that's the definition of safety we really can't discuss this inherent safety without

11:15talking about real world adoption can we because adoption feels like this powerful maybe irreversible form of validation

11:22it takes bitcoin out of the realm of just a speculative tech experiment and grounds it as something people

11:28and institutions are actually using and valuing as a store of wealth right look at corporate conviction

11:34that seems to speak louder than just retail enthusiasm definitely our sources point directly to microstrategy

11:40as the prime example here they've systematically accumulated over 200 000 btc it's now their primary treasury reserve

11:48asset holding billions of dollars in something so volatile that must have required incredible conviction

11:53imagine the boardroom discussions their strategy basically confirms they view bitcoin not just as an

11:59investment but as a superior long-term inflation hedge compared to holding depreciating cash or even low-yield

12:06traditional instruments and their bet has paid off so far massively their position is now up billions

12:13this shows that major publicly traded companies are willing to treat bitcoin as a legitimate treasury asset

12:21they believe it offers a unique kind of long-term safety from currency devaluation that's a powerful

12:27signal and perhaps the most radical validation we've seen is from a sovereign nation el salvador they

12:33adopted bitcoin as legal tender back in 2021 a hugely controversial move at the time extremely but critically our

12:41sources confirmed that while they definitely endured severe initial volatility their holdings were

12:45underwater for quite a while and faced immense global criticism particularly from the imf they held on

12:51they held on and they've reportedly begun profiting on their overall bitcoin investment after the recent

12:56market recovery and subsequent bull run that el salvador example really highlights both the geopolitical risk

13:02and the potential reward when they made that move the established financial powers questioned the stability the

13:07safety the wisdom of it all they were warned it could destabilize their economy yet by sticking with it and

13:12seemingly benefiting from bitcoin's long-term resilience they're sending a very powerful signal

13:18here's a nation-state implicitly trusting bitcoin's fixed supply as a tool for potentially national wealth

13:25preservation and economic stability outside the traditional dollar system that's a profound validation that retail

13:32investors probably shouldn't ignore and this corporate and sovereign adoption is mirrored maybe even

13:37enabled by growing institutional recognition this feels like the biggest indicator recently that bitcoin

13:44is gaining safe exposure for more mainstream investors absolutely the rise of regulated custody solutions

13:50companies dedicated to securely holding crypto for big institutions and the huge participation from wall street

13:55specifically the surge in institutional inflows into the spot bitcoin etfs that is a critical measure of

14:01perceived safety what does the creation of a spot etf actually mean for the average investor's safety

14:07it means two really important things first and most obviously you can now get exposure to bitcoin

14:13through your regular traditional brokerage account no need to sign up for crypto exchange you might not trust

14:19no need to figure out self-custody if you don't want to it's familiar territory lowering the barrier to entry

14:25massively but second and maybe more importantly for the safety discussion these etfs are subject

14:31to significant regulatory oversight typically by bodies like the sec in the u.s meaning rules and

14:37protections yes they often require the fund managers to use high-grade institutional cold storage

14:43solutions for the underlying bitcoin maintain substantial insurance policies and adhere to strict reporting

14:50standards so let's be clear an etf doesn't make the bitcoin itself less volatile the price will still swing

14:56wildly correct the underlying asset is the same but it makes the access to that asset and the custody of

15:02that asset dramatically safer for millions of investors who are used to and trust the traditional regulated

15:09financial system precisely it takes this raw decentralized sometimes intimidating asset and packages

15:17it into a digestible regulated and often insured financial product this significantly lowers the risk profile

15:24associated with that third-party failure the exchange hacks the mismanagement which as we identified

15:31is arguably the primary source of actual investor losses and risk historically this is where it gets

15:37really interesting i think if the core network is mathematically secure never been hacked if the supply

15:42is fixed and predictable and if big institutions are now piling in through these regulated wrappers like etfs

15:48why does this perception of extreme risk still cling so tightly to bitcoin it's a great question what are

15:54the factors outside the bitcoin code itself that continue to undermine investor confidence and make

15:59people hesitant it's because these external factors these real-world friction points often overwhelm the

16:04theoretical safety of the network for the average investor at least in the short to medium term and the

16:09biggest danger the one we see confirmed again and again in the source material seems to be external

16:14custody risk yeah basically the risk of the intermediaries failing yes this really brings up that crucial

16:20question is the primary risk the asset itself or is it the people in the platforms that are holding

16:26it on your behalf let's look at the classic case studies our material provided mount gox back in 2014

16:35that was devastating for early adopters but it's really important to understand why it failed isn't it

16:39absolutely critical mount gox wasn't a failure of the bitcoin protocol it perfectly highlighted the immense

16:45danger of trusting centralized custody especially back when security standards in the crypto space were

16:51frankly immature what actually happened billions of dollars worth of bitcoin were lost stolen effectively

16:57not because the bitcoin network hiccuped but because the centralized mount gox exchange itself failed

17:02catastrophically it seems to have been due to incredibly poor security practices essentially terrible

17:08management of the private keys that controlled customer funds so for the investor who trusted matt

17:13gox the loss was total their bitcoin was gone even though the bitcoin protocol itself was humming along

17:18just fine exactly the protocol's integrity didn't help the user whose funds were on that specific

17:24failed platform okay but let's fast forward if the core asset has never been hacked why did the price

17:30of bitcoin still crater after much more recent events like the collapse of ftx in 2022

17:37wasn't the market punishing bitcoin itself for the failure of a centralized company that's the core

17:42contradiction playing out in real time the ftx collapse provides an even clearer distinction this

17:47wasn't even primarily a hack it was spectacular exchange mismanagement alleged fraud on a massive scale

17:54and a complete lack of internal controls again nothing to do with a technical failure of bitcoin's code

18:00so why did the price dump so hard because the resulting market panic was immense it created this

18:05cascade effect trust in the infrastructure of crypto collapsed overnight and even though bitcoin

18:10wasn't the cause that fear inevitably spilled over and dragged its price down dramatically so the

18:16market still sees bitcoin is highly correlated with the health of the overall crypto ecosystem

18:20very much so especially during crises it underscores that third-party risk the counterparty risk of

18:25trusting an exchange or custodian is perhaps the single biggest ongoing threat to investor safety in

18:31practical terms the old saying not your keys not your coins it sounds cliche but history keeps

18:37proving it right if you don't personally hold the private keys to your bitcoin you are relying entirely

18:43on the honesty the competence and the security of that intermediary and history shows from ant

18:48gox to ftx and others that reliance can be utterly catastrophic okay so custody risk is huge

18:56beyond that we have these could a major government realistically ban bitcoin entirely a coordinated

19:02global ban seems unlikely given its decentralized nature but a sudden broad regulatory crackdown in a

19:08major market like the u.s or europe even if politically difficult would almost certainly have a severe

19:14negative impact on price discovery and liquidity in the short term this creates a kind of systemic risk

19:19that no single investor can really mitigate through just holding their own keys or having a long-term

19:25strategy it's external pressure and finally there's this pervasive influence of the broader market

19:30narrative and well the macro economy yes the narrative and macro dependence despite the whole digital gold

19:37aspiration the uncorrelated asset idea the reality so far is that bitcoin's price is still highly sensitive

19:43to overall macro cycles like interest rate hikes exactly changes in interest rates flows into risk assets

19:49generally global economic fear or optimism bitcoin often trades more like a high beta tech stock than

19:55like digital gold during these periods and it's sensitive to news and sentiment too very much so our

20:01sources cite google trends data for example showing that searches for phrases like is bitcoin safe

20:07absolutely spike immediately after major negative news events big crash and exchange failure like ftx fear

20:14drives searches fear drives searches and often fear drives selling it demonstrates how closely the

20:20price is still tied to public perception to media narratives often driven by fud fear uncertainty and

20:26doubt and just general market headlines the asset hasn't yet fully decoupled from the wider economy

20:32or from sentiment swings to be considered a truly safe uncorrelated hedge by the majority of the market

20:38its price movements often still mirror those of other high risk assets okay so we've got this complex picture

20:44secure protocol risky intermediaries regulatory clouds macro sensitivity what does this all mean for the

20:51individual investor the person listening right now maybe trying to decide if they should put some money into bitcoin

20:55yeah how do you navigate this the sources seem to suggest that safety in the end depends entirely on

21:01who you are as an investor and critically how you approach the asset it's not a one-size-fits-all answer

21:06that is absolutely the essential takeaway here safety in bitcoin is entirely personalized

21:11it has to be defined by your specific financial goals your tolerance for risk your investment strategy

21:18and crucially your time horizon so we need to break down the risk profiles based on different types

21:24of investors using the historical outcomes from our sources as a guide exactly let's start with the group

21:31that historically has been rewarded the most assuming they had the stomach for it the long-term investor

21:37the whole dollar oh day dl hold on for dear life right those investors who are committed to holding

21:43bitcoin through its incredibly punishing volatility cycles they have as a group been historically rewarded

21:49provided they stick to a disciplined approach perhaps like dollar cost averaging buying regularly regardless

21:54of price why does that work for them because their whisk tolerance for that short-term volatility is

21:59just inherently high they're not focused on the price next week or next month their focus is on the

22:03multi-year cycle maybe even the decade-long picture they believe in those fundamental hard money principles

22:09we talked about the scarcity the decentralization the potential as an inflation hedge so for them a 50 price drop

22:17isn't necessarily a sign that bitcoin is unsafe for a true h dealer a 50 drop isn't reason to panic sell

22:25it's often seen as a temporary drawdown maybe even a buying opportunity in the longer term pursuit of appreciation

22:31against inevitable fiat currency expansion their definition of safety is rooted in the long-term

22:37resilience and the fundamental properties of the asset not its short-term price stability okay now

22:43let's contrast that sharply with the other end of the spectrum short-term traders ah yes short-term

22:48traders are facing arguably the highest risk reward ratio imaginable with bitcoin why so high risk

22:54because of that extreme short-term volatility we keep mentioning if you're trying to make quick profits

22:59by timing the market bitcoin's tendency to swing 10 20 in a day or a week can be brutal especially with

23:06leverage exactly compounded by the common use of leverage in crypto trading those swings can wipe out

23:12an entire position almost instantly for this group playing the short-term game bitcoin is arguably one of

23:19the least safe assets they could choose it's pure speculation not investing for safety the network's long-term

23:27integrity is almost irrelevant to them their time horizon demands a stability that bitcoin simply

23:33does not offer okay what about the big players then the institutions they seem to be increasingly

23:38involved but how are they approaching safety they can't just hodl like an individual might right

23:43institutions have different constraints they seem to be achieving safer exposure primarily through two

23:48main avenues we've touched on first using those regulated vehicles like the spot etfs that provides

23:54regulatory clarity and outsources the custody headache and the second second for direct holdings they use

23:59high security often insured third-party custody providers specifically designed for institutional needs

24:06these are not your typical retail exchanges but they face other risks right yes they expose themselves to a

24:12different very significant type of risk reputational risk think about tesla's big 1.5 billion dollar btc purchase back in 2021

24:22that made huge headlines huge headlines but it also exposed them to intense scrutiny from shareholders

24:29analysts and the media they constantly had to justify holding such a volatile asset on their corporate treasury

24:35and they ended up selling some of it later they did sell a portion later that year which really

24:39demonstrates the calculated corporate risk tolerance required institutions aren't just managing market risk

24:44they have to manage public perception shareholder relations and potential regulatory scrutiny just as carefully

24:50their perceived safety comes from being able to manage and justify that volatility to their stakeholders

24:55okay finally let's talk about everyday users maybe someone who's convinced by the long-term hodl argument

25:02but is worried about the custody risks we discussed how is their safety profile improving as the ecosystem

25:08matures this is a really positive trend the technology is definitely improving the safety options for

25:14individual users specifically allowing them to mitigate that crippling third-party risk we saw

25:20with mentgox and ftx also primarily through tools like hardware wallets these are physical devices that

25:27keep your private keys completely offline making them immune to online hacking attempts they put the control

25:33and the responsibility squarely back in the user's hands and things like the lightning network the development

25:39of layer 2 solutions like the lightning network also helps it allows for faster cheaper smaller bitcoin

25:44transactions making it more practical for everyday use without necessarily having to trust a third party

25:49for every single payment so the tools are getting better making self-custody more feasible more accessible

25:55and practical yes it fundamentally shifts the risk instead of trusting a potentially fallible centralized platform

26:03you are trusting yourself to manage your keys securely that's a different kind of risk requiring

26:08education and diligence but it eliminates the counterparty risk are we seeing people actually do this

26:14moving away from exchanges yes the market metrics seem to reflect this growing confidence in self-custody

26:20our sources mention analyzing exchange outflows versus inflows there's often a visible trend especially

26:26during uncertain times of large amounts of bitcoin being moved off centralized exchanges and into private wallets

26:33this signals a growing desire among investors to take control and manage their own risk directly

26:38okay so wrapping this section up it really comes back to the individual listener doesn't it the ultimate

26:43question you have to ask yourself is intensely personal what is your definition of safe when it comes to

26:48investing is it steady stable value maybe protected by government insurance like a savings account yeah

26:54or is it the potential for significant long-term growth underpinned by verifiable scarcity and proven technical

27:02resilience even if it means enduring wild short-term swings and taking on personal responsibility for

27:08security your answer to that question really dictates whether bitcoin fits your personal risk profile

27:14and your definition of safety now if we zoom out a bit and connect this discussion to the bigger picture

27:20the perceived safety of bitcoin isn't just about bitcoin itself it's actually crucial for the entire

27:26developing digital asset ecosystem how so why does bitcoin's safety rep matter for say defy or nfts

27:34because bitcoin fundamentally acts as the market's foundational layer it's the oldest the biggest the

27:39most well-known crypto asset it's the market's primary proof of concept for blockchain technology

27:43and decentralized value it's the gateway right it's the first thing most people encounter if the

27:48institutional world and the broader retail world don't trust that foundation that first step why would

27:53they ever feel comfortable exploring more complex or newer areas like web3 gaming decentralized finance

27:59protocols or digital identity solutions built on blockchains it sets the tone it's like the trust layer for

28:05the whole decentralized dream exactly bitcoin serves as that fundamental gateway asset into the broader world of

28:12web3 and digital assets if btc is eventually widely deemed safe or at least stable enough or perhaps just

28:20verifiably resilient after surviving multiple crashes major hacks of intermediaries and ongoing regulatory

28:26challenges that confers legitimacy onto the whole space it absolutely confers legitimacy on the entire

28:31ecosystem it helps establish a baseline of trust and understanding that can then pave the way for more

28:36mainstream adoption of other crypto technologies but conversely if the foundation bitcoin is constantly

28:43perceived as dangerously unstable or fundamentally unsafe then everything built on top or alongside it looks shaky

28:49too it shakes confidence in the whole experiment and mainstream adoption stalls or at least slows

28:54dramatically okay besides being the gateway the other major narrative driving its perceived safety

28:59especially among macro investors is this idea of digital gold bitcoin as a potential hedge against

29:06inflation against unstable fiat currencies yes this is a very powerful narrative especially post pandemic

29:12with all the money printing we saw globally but it's a narrative that is still being heavily tested in the real world

29:18how does it stack up against actual gold so far well the volatility index comparisons that our sources

29:24provide show it's still pretty difficult for bitcoin to truly stand shoulder to shoulder with physical gold

29:30as a consistent safe haven asset yet why not for instance during periods of sudden economic turmoil or market

29:37panic physical gold often remains stable or even rises as capital seeks safety bitcoin however as we noted earlier

29:45often still falls sharply along with other risk assets like tech stocks during those initial shocks so it

29:50doesn't always act like a safe haven when you might need it most not consistently not yet to truly fulfill

29:56that digital gold role in the eyes of traditional finance and be considered safe in that macro context

30:02its correlation with traditional risk markets probably needs to decrease significantly over time

30:07it needs to demonstrate that decoupling more reliably but is it acting as a hedge in some places that said

30:13its performance against collapsing or rapidly hyperinflating fiat currencies in certain specific global

30:19jurisdictions think turkey argentina nigeria is already validating the hedge narrative for people living

30:26under extreme economic instability for them bitcoin's volatility might look preferable to the guaranteed

30:32depreciation of their local currency so its safety as a hedge is context dependent very much so it depends

30:40on what you're hedging against and looking at the flip side again we have to consider the consequences if this

30:45safety perception fails to solidify what if regulatory bodies continue to view it as fundamentally too volatile too risky

30:52too risky for the mainstream financial system well if bitcoin isn't successfully established and widely seen as a reasonably

30:58safe institutional grade store of value if wall street exposure remains limited to just a tiny fraction of global capital it

31:04definitely acts as a break a break on what it dramatically slows down the potential mainstream adoption of all forms of crypto and web 3 innovation globally

31:14the regulatory barriers would likely remain high institutional investment would stay cautious and peripheral

31:20and the average retail user base will continue to be plagued by fears about custody risks and those wild price swings

31:26so ultimately bitcoin's perceived safety isn't just about its own price

31:32no it's really the market's proxy for the perceived viability and safety of decentralized finance and digital assets writ large

31:39its success or failure in achieving that safe asset status has ripple effects across the entire emerging industry

31:45hashtag tag outro

31:47wow that was an incredibly detailed deep dive really laying out the data contrasting that amazing resilience of the protocol

31:53with the undeniable risks in the ecosystem around it

31:57that's a complex balance

31:58we started by asking that seemingly simple question is bitcoin a safe investment and i think we've synthesized a highly nuanced answer

32:05the short version is bitcoin is absolutely not safe in the traditional sense that we think of for bonds or insurance savings accounts

32:11not at all it offers zero short-term price stability no government insurance none of that traditional safety net

32:18but and this is the crucial final nuance from our analysis as a long-term asset one defined by its absolute scarcity its decentralization

32:27and a core protocol that has demonstrably never failed in over a decade

32:32it may in fact be the safest long-term bet available within the inherently volatile and disruptive world of digital assets and web 3

32:41so the safety depends on the context entirely the real dangers the things that cause actual losses

32:47seem to lie not in the bitcoin code itself but in your chosen time horizon your investment strategy

32:52how you choose to hold it and your personal security practices

32:55which leaves us with a final thought for you the listener to consider

32:59based on everything we've reviewed today that proven long-term resilience

33:02the undeniable institutional validation through etfs the perfect security record of the blockchain itself

33:08but also the history of exchange failures and the ongoing risks

33:12right knowing that the core code seems perfect

33:16but the human systems built to access it are historically flawed

33:20perhaps the real question moving forward is this

33:23can the safeguards things like the regulated etfs better hardware wallets the whole self-custody movement

33:30can they mature fast enough and become user friendly enough

33:34to make the user layer effectively as secure and trustworthy as the underlying network itself

33:40that seems to be the key challenge for widespread safe adoption

33:43absolutely

33:44and hey if you found this deep dive helpful

33:46if you enjoyed this breakdown on whether bitcoin is safe to invest in

33:49please take just a moment to engage with us

33:51it really does help the channel

33:52it absolutely does

33:53subscribing to the channel

33:55leaving a comment below with your thoughts

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34:06we appreciate the support

34:08we really do

34:09so drop your thoughts below

34:10given everything

34:11do you personally believe bitcoin is becoming safer than maybe even gold as a long-term hedge

34:16or is it still fundamentally too risky for your own portfolio

34:20let us know

34:21thanks for tuning in to deep dive

34:22time to deep dive

34:36time to deep dive

Is Bitcoin Safe to Invest | Safe Long-Term Investment or Bubble Risk?

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