Part 8/12:
- Bitcoin: As a global digital currency, Bitcoin’s value fluctuates against fiat currencies but provides a universal measurement and hedge against fiat devaluation.
8. Concentration and Systemic Risks
Stocks: Concentration in one sector or country can pose risks; systemic failures can bring down the entire system.
Bitcoin: Offers a global, borderless asset that is resilient to country-specific risks; even if one country bans it, others may adopt it, reducing systemic vulnerability.
9. Volatility and Price Fluctuation Risks
- Stocks: Generally less volatile but with unpredictable recovery times after dips.