Newcomers are often terrified by the fact that bitcoin volatile price swings happen.
“It’s too risky! It drops 50%!”
Yes, it is volatile. But you have to ask why.
Bitcoin is a brand new asset class that is sucking in value from the entire world. It is growing from zero to trillions of dollars. That process cannot be a smooth straight line.
Volatility is the price you pay for performance.
If you want safety, hold cash (and lose 3% a year to inflation).
If you want growth, hold Bitcoin (and stomach the swings).
As the market gets bigger, the volatility is decreasing. It is much more stable today than it was in 2013.
But for now, the bitcoin volatile nature is actually a feature, not a bug—it shakes out the non-believers and rewards those with conviction.