If you’re looking to store your money safely, Bitcoin can be an interesting option, since no one can take it away from you. Always, but they will always be yours.
Every investment, no matter how safe it seems, has its risks, and we’re not talking so much about price fluctuation, but about the physical deterioration it may suffer. For example, if you keep dollars under your mattress, or in your safe, you run the risk that the bills will be ruined, or some series will go out of circulation.
The same applies to gold, you must store the bars correctly, as they can be damaged and lose some of their value. In some cases they reach a high percentage of the investment.
Is Bitcoin the promised reserve asset?
What about the fact that bitcoins are 100% safe?
If you keep your bitcoins correctly in a paper wallet, they will be 200% safe. Since nobody can access them, unless you lose the paper printed with your private key. Just like a fiat coin bill, you must take care of storing it.
Personally what I do, maybe you can use it, is cross out 3 characters at random from the private key, so nobody could access it even if you lost the paper. Also, I keep a „backup“ in another safe place. You’ll know better than anyone how to protect your savings.
Regarding exchanges you should only leave what you use for trading, the rest you should keep in a paper wallet. There are many reliable exchanges, personally I only use Binance, because it has a wide variety of financial instruments to invest, plus high liquidity.
Should governments invest in Bitcoin?
Personally I think so, at least part of their reserves, so that in case they run out of physical assets, they can resort to digital assets, which will always be available.
For example, the most resounding case at the moment is the Venezuelan gold that is confiscated in London. If those little more than a billion had been held at BTC, Nicolas Maduro might already be using them.
The London treasury has ruled that it will only hand over the gold to the legitimate President of Venezuela, Juan Guaidó. In the opinion of the writer, thank goodness for the good of the Venezuelan people.
Leaving aside the political question, it is very important that governments have reserves in cryptomonies, especially Bitcoin Trader, so that in turbulent times they can count on immediate liquidity.
Finally, do you consider it safe to store your money in Bitcoin? Let us know in the comment box.
I’ll say goodbye until tomorrow with this line from Warren Buffett:
„Don’t save what you have left after spending, spend what you have left after saving.“