As the current world leader in the cryptocurrency market, Bitcoin has been serious holders and some serious fluctuations in the last 6 months. Almost everyone has heard of it and almost everyone has an opinion. Some may not understand the idea that a currency with no value can be created from nothing, while some love the idea that something without government control can be traded as a valuable entity in itself.
Where do you feel in the “Should I Buy Bitcoin?” probably the fence boils down to one question: can I make money with Bitcoin?
Can you make money with Bitcoin?
In the last 6 months, we’ve seen the price go from $ 20 a coin in February, to $ 260 in April, up to $ 60 in March, and up to $ 130 in May. Now the price has settled at about $ 100 for Bitcoin, but what happens next is anyone’s guess.
The future of Bitcoin is ultimately based on two main variables: its adoption as a currency by a wide audience and the absence of prohibitive government intervention.
The Bitcoin community is growing rapidly, interest in Crypto currency has spread drastically online and new services are increasingly accepting payments with Bitcoin. Blogging giant WordPress accepts payments with Bitcoin and Africa-based mobile app provider Kipochi has developed a Bitcoin portfolio that will allow Bitcoin payments to mobile phones in developing nations.
We have already seen that people made millions with the currency. We are seeing a growing number of people experiencing living only on Bitcoin for months while still recording the experience for viewing documentaries.
You can buy takeaway food in Boston, coffee in London and even a few cars on Craigslist using Bitcoin. Bitcoin searches skyrocketed in 2013, with the April rise and subsequent fall in the price of Bitcoin. Last week, the first major acquisition of a Bitcoin company for SatoshiDice, an online betting site, was made for 126,315 BTC (about $ 11.47 million) by an undisclosed buyer.
This rapid growth of awareness and uptake seems to continue, if confidence in the currency remains strong. Which leads to the second dependency. Government regulations.
Although it is specifically designed to operate independently of government control, Bitcoin will inevitably be affected in some way by governments. This must be the case for two reasons.
First, to achieve high levels of adoption, Bitcoin will need to be accessible to a large number of people, and this means extending beyond the realms of hidden transactions to normal day-to-day transactions for individuals and businesses. Second, these Bitcoin transactions could become a traceable part of people’s taxable wealth, to declare and regulate them alongside any other type of wealth.
The European Union has already stated that Bitcoin is not classified as a Fiat currency, nor as money, and as such will not be regulated by itself. In the United States, the 50-state system and the number of bureaucratic bodies involved have made decisions more difficult, without reaching consensus so far. Bitcoin is not considered money as such, but it does act as money.
A thriving Bitcoin market in the United States has a more uncertain future for now and any conclusive legislation in the United States can have a very positive or very negative effect on the future of Bitcoin.
So, should you buy Bitcoin?
The answer depends mostly on your risk aversion. Bitcoin will certainly not be a fluid investment, but the potential of this currency is huge.