Since the world’s current front runner in the Crypto Currency market, Bitcoin have now been making some serious headlines, and some serious fluctuations within the last few 6 months. Almost everyone has heard of them, and everyone has an opinion. Some can’t fathom the proven fact that a currency with any value could be created from nothing, whilst some love the proven fact that something without Government control could be traded as an invaluable entity in a unique right.
Where you sit on the “Should I Buy Bitcoin?” fence probably ultimately boils down to at least one question: Can I Make Money from Bitcoin?
Can You Make Money from Bitcoin?
In just the past 6 months, we’ve seen the price go from $20 a coin in February, around $260 a coin in April, back to $60 in March, and back around $130 in May. The purchase price has settled to around $100 a Bitcoin, but what happens 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 Buy bitcoin, Kipochi, have developed a Bitcoin wallet that may allow Bitcoin payments on mobile phones in developing nations.
We’ve already seen people make millions on the currency. We’re seeing increasing amounts of people experimenting with living only on Bitcoin for months on end, whilst recording the ability for documentary viewing.
You should buy a takeaway in Boston, coffee in London, and even a couple of cars on Craigslist using Bitcoin. Searches for Bitcoin have rocketed in 2013, with April’s hike and subsequent fall in the Bitcoin price. The other day the first 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 carry on, if trust in the currency remains strong. Leading to the 2nd dependency. Government regulation.
Although created specifically to work independently from Government control, Bitcoin will inevitably be affected by Governments in some way. This must be the case for just two reasons.
Firstly, to achieve high levels of adoption, Bitcoin must 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 turn into a trackable section of people’s taxable wealth, to be declared and regulated alongside every other type of wealth.
The European Union has already declared that Bitcoin is not classed as a Fiat currency, or as money, and therefore, will not be regulated in a unique right. In the US, the 50 state system and quantity of bureaucratic bodies involved has inevitably made decisions more difficult, without any consensus reached thus far. Bitcoin is not regarded as money therefore, however it is considered 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 continuing 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 always a smooth investment, but the potential with this currency is huge.