Is Bitcoin risky depends on your definition of “risky” and your tolerance for risk.

In today’s world, investment risk is increasing everywhere. Government bonds are at risk of interest rate rises, corporate bonds are risk of insolvency and stocks are always at risk of a market crash. Gold and silver coins are at risk of confiscation, theft and don’t yield dividends.

One fact about Bitcoin shows that it’s not as risky as you may think despite corrections that can be harsh (70%). As of 2022, every investor of Bitcoin who has held it for 900 days or more has gained value from the investment. Every one – without exception.

Also, Bitcoin has the lowest Sharpe ratio of any investment class. The Sharpe ratio measures risk adjusted returns of various investments – calculated as average annual return divided by maximum annual loss. Bitcoin is the only investment of a sharpe ratio greater than 1.0.

So, it depends on how you define risky. But consult a financial advisor to see if Bitcoin is a right investment for you. We are not licensed investment advisors.

btc sharpe ratio

The historical risk and return of various investments.

And the more you learn about Bitcoin, the less risky it becomes. After reading one or more books about it, you begin to understand how Bitcoin is the least risky of almost any asset in the world. Knowledge is power as it dispels fear.