Although it is true that Bitcoin has faced significant price volatility over the past decade, this is expected for a young and growing market. Since the inception of Bitcoin in 2009, it has consistently gained value in the long term. And, as Bitcoin matures, the strength of the regulatory framework in several countries around the world has helped to attract a wave of institutional investment.

Reality There is a fundamental reasoning that leads the Bitcoin investor to believe that the value of their investment will rise, while in a casino it is known that the house always has a better chance of winning. Obviously there is no guarantee regarding future performance or the continuity of these positive results, but the long-term trend of Bitcoin in recent years has been upward.

A very popular investment strategy to reduce the impact of volatility is dollar-cost averaging (DCA), in which a fixed amount is invested every week or month, regardless of the market conditions. This strategy usually has positive results, despite the volatility that exists in a positive trend environment.

The volatility of Bitcoin seems to be declining. Why is this? Due to the increase in institutional participation and the stabilizing effect of the popularization of cryptocurrencies as a whole. Whether Bitcoin or any other cryptocurrency deserves a place in our investment portfolio depends on our personal circumstances, risk tolerance, and investment horizon. And, even though Bitcoin has had a stable upward trend in recent years, it has also had substantial downturns. Investors should be careful when dealing with volatile markets.