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Rachel Welch

17 October 2022 216 Read Bitcoin

Is Bitcoin a Safe Investment?

It is a common question for investors - "Is BTC a safe investment?" - because the digital currency has seen consistent gains over the past few years. Bitcoin has gone up more than eightfold in three years and more than fourfold in the past five years. The recent 60% sell-off is typical volatility and it's the first time the price has fallen more than 60% in one year since 2015. This volatility is largely a result of Bitcoin's enormous potential and uncertain outlook.

Bitcoin's low correlation with traditional assets makes it an appealing tool for portfolio diversification. Its fixed supply also limits dilution, which makes it a valuable inflation hedge and store of value. However, the recent volatility has kept it from achieving much in these departments. Therefore, you should do your own research to determine if Bitcoin is a safe investment.