It's both. Some have a perk that reduces the spread while aiming down the sights. That perk makes it more accurate with in its range and do more reliable damage as it spreads less. With out the perk I'd imagine it's way better then hip firing anything. Ice break doesn't even have a hip fire reticle lol.
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Good to know! I'll try firing with my sights more often when my target is further out of range.