Bitcoin is the ‘least risky asset’ long-term, says top analyst

Bitcoin is the ‘least risky asset’ long-term, says top analyst

Bitcoin’s True Value: A Long-Term Wealth Preserver Amid Short-Term Volatility

Bitcoin is often seen as a high-risk asset, but Kelly Kellam, Director at Bitlab Academy, argues that, from a long-term perspective, Bitcoin is actually one of the least risky investments available.

In a discussion with Roundtable host Rob Nelson and Alex Chizhik, Chief Commercial Officer at HarrisX, Kellam emphasized that many investors get distracted by Bitcoin’s short-term volatility, overlooking its potential as a stable store of wealth over time.

“The problem is we’re all greedy, and we get caught up in the short-term charts — the 15-minute, one-hour, or even the four-hour time frames. We focus on the rapid trades, but that’s more of a trader’s mindset, not an investor’s,” Kellam explained. He pointed out that while Bitcoin may appear volatile in the short term, over longer time periods, it behaves more like an asset that preserves wealth.

Understanding Bitcoin’s Volatility: Challenges for the Everyday Investor

Alex Chizhik echoed Kellam’s viewpoint, explaining that most people, especially those living paycheck to paycheck, are not well-equipped to handle Bitcoin’s price fluctuations. “Managing liquidity is tough for most people, and many don’t fully grasp the importance of long-term savings in assets like Bitcoin, which have the potential to outpace inflation and monetary debasement,” Chizhik said.

However, for those struggling with day-to-day expenses, Bitcoin’s volatility can pose a significant challenge. “When you’re living month-to-month, Bitcoin’s volatility can be a real problem. If people are leveraging their holdings or don’t fully understand how to manage these price swings, it can be detrimental,” Chizhik added.

The Future of Bitcoin: Borrowing Against BTC Holdings

Chizhik highlighted a game-changing aspect of Bitcoin’s future: the ability to borrow against Bitcoin holdings rather than selling them. This shift could revolutionize how people manage liquidity and interact with their crypto assets.

“Kelly made a very important and often overlooked point — borrowing against Bitcoin or other digital assets reduces sell pressure,” Chizhik explained. He outlined how borrowing against BTC holdings can change the way people use Bitcoin. For example, rather than selling Bitcoin to cover expenses like groceries or bills, people can borrow against their assets, leaving their BTC intact for future growth.

This also addresses concerns about custody, as digital assets can be stored in trusted institutions like BNY Mellon. “This method solves custody issues and allows for liquidity without the need to sell Bitcoin during volatile periods. It’s a fundamental shift in how people can approach their crypto holdings,” Chizhik concluded.