Since the world’s current front runner in the Crypto Currency market, Bitcoin have already been making some serious headlines, and some serious fluctuations in the last 6 months. Just about everyone has heard of these, and just about everyone posseses an opinion. Some can’t fathom the indisputable fact that a currency with any value may be created from nothing, whilst some love the indisputable fact that something without Government control may be traded as a valuable entity in a unique right.
Where you lay on the “Should I Buy Bitcoin?” fence probably ultimately boils down to one question: Can I Make Money from Bitcoin?
Can You Make Money from Bitcoin?
In just the final 6 months, we’ve seen the purchase price go from $20 a coin in February, up to $260 a coin in April, back to $60 in March, and back up to $130 in May. The purchase price has settled to around $100 a Bitcoin, but what are the results next is anyone’s guess.
Bitcoin’s future ultimately rests on two major variables: its adoption as a currency by way of a wide audience, and the absence of prohibitive Government intervention.
The Bitcoin community keeps growing rapidly, curiosity about the Crypto currency has spread dramatically online, and new services are accepting Bitcoin payments increasingly. Blogging giant, WordPress, accepts Bitcoin payments, and African based mobile application provider bitcoin instantly, Kipochi, have developed a Bitcoin wallet that will allow Bitcoin payments on mobile phones in developing nations.
We have already seen people make millions on the currency. We’re seeing increasing variety of people trying out living only on Bitcoin for months on end, whilst recording the experience for documentary viewing.
You should buy a takeaway in Boston, coffee in London, and even a few cars on Craigslist using Bitcoin. Pursuit of Bitcoin have rocketed in 2013, with April’s hike and subsequent fall in the Bitcoin price. Last week the initial large acquisition of a Bitcoin company was made for SatoshiDice, an on line gambling site, for 126,315 BTC (about $11.47 million), by an undisclosed buyer.
This rapid growth in awareness and uptake looks set to keep, if trust in the currency remains strong. Which leads to the second dependency. Government regulation.
Although created specifically to work independently from Government control, Bitcoin will inevitably be affected by Governments in some way. This should be the case for just two reasons.
Firstly, to achieve high levels of adoption, Bitcoin will need to be accessible to many people, and which means spreading beyond the realms of hidden transactions on track everyday transactions for individuals and businesses. Secondly, these Bitcoin transactions could become a trackable section of people’s taxable wealth, to be declared and regulated alongside some other type of wealth.
The European Union has recently declared that Bitcoin is not classed as a Fiat currency, or as money, and as such, won’t be regulated in a unique right. In the US, the 50 state system and amount of bureaucratic bodies involved has inevitably made decisions more challenging, with no consensus reached thus far. Bitcoin is not regarded as being money as such, but it is recognized as to do something like money.
A thriving Bitcoin market in the US includes a more uncertain future for the time being, and any conclusive legislation in the US could either possess a positive, or perhaps a very negative influence on the future of Bitcoin.
So, Should You Buy Bitcoin?
The answer depends mostly on what risk averse you are. Bitcoin certainly isn’t going to be a smooth investment, nevertheless the potential with this currency is huge.