Part 6/9:
Despite its volatility, Bitcoin is considered a viable long-term investment for those who believe in its widespread adoption and utility. Over its history, Bitcoin has experienced at least six significant drops exceeding 50% from previous highs. Such volatility is characteristic of a relatively young technology with a small market cap compared to traditional assets like foreign exchange and equities.
For long-term investors, short-term price swings are less relevant, as holding through volatility could lead to substantial appreciation over a decade. The limited supply—only 21 million coins ever to be mined—coupled with increasing demand, especially through institutional channels, supports this outlook.