How to Understand Whether Bitcoin is a Risk Asset or a Safe-Haven Asset?

Many times, Bitcoin keeps rising against the odds, and even geopolitical risks cannot suppress its upward momentum. Therefore, many friends say that Bitcoin has become digital gold. However, it depends on how we specifically view it!

In the eyes of different people, its attributes are different. For high-net-worth investors, it may be a safe-haven asset, but what they are avoiding is not the risk of asset depreciation, but the risk of asset exchange.

Everyone knows that during geopolitical conflicts, the first thing a country restricts is currency exchange, and if one wants to leave that country, many assets cannot be fully taken away, such as local gold, stocks, bonds, real estate, and cash. However, BTC is different; when Biden was in office, many people took away crypto assets.

Many friends have also discussed why it cannot be USDT or USDC? For ordinary people, stablecoins are undoubtedly the best, but stablecoins have no appreciation potential. For high-net-worth investors, what they look at is not short-term fluctuations but long-term value. Therefore, in recent years, Bitcoin has been shifting towards long-term and high-net-worth investors.

However, for small-scale investors, due to its strong volatility, it is inevitably a risk asset. After all, for most investors, Bitcoin is just a tool for wealth, not wealth itself.

As we often say, it is just that its volatility attracts many risk investors. They want to profit from its fluctuations, which is what we call buying low and selling high! Conan focuses on contract investment; if you are also interested, we can discuss and broaden our horizons together. If there is a need in this area, we can discuss it in the comments!