As the world’s current front runner in the Crypto Currency market, Bitcoin have already been making some serious headlines, and some serious fluctuations within the last few 6 months. Almost everyone has heard of these, and almost everyone posseses an opinion. Some can’t fathom the idea that a currency with any value could be created from nothing, whilst some love the idea that something without Government control could be traded as a valuable entity in its own 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 last 6 months, we have seen the price go from $20 a coin in February, around $260 a coin in April, back down to $60 in March, and back around $130 in May. The 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, fascination with 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 instantly, Kipochi, have developed a Bitcoin wallet that will allow Bitcoin payments on cellphones in developing nations.
We’ve already seen people make millions on the currency. We’re seeing increasing numbers of people trying out living only on Bitcoin for months on end, whilst recording the experience for documentary viewing.
You can buy a takeaway in Boston, coffee in London, and even a couple of cars on Craigslist using Bitcoin. Looks for Bitcoin have rocketed in 2013, with April’s hike and subsequent fall in the Bitcoin price. A week ago the very first large acquisition of a Bitcoin company was created 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 next dependency. Government regulation.
Although specifically made to work independently from Government control, Bitcoin will inevitably be affected by Governments in certain way. This ought to be the case for just two reasons.
Firstly, to accomplish high degrees of adoption, Bitcoin must be accessible to large numbers of people, and meaning spreading beyond the realms of hidden transactions on track everyday transactions for individuals and businesses. Secondly, these Bitcoin transactions could become a trackable element of people’s taxable wealth, to be declared and regulated alongside some other kind of wealth.
The European Union has recently declared that Bitcoin isn’t classed as a Fiat currency, or as money, and as such, won’t be regulated in its own right. In the US, the 50 state system and quantity of bureaucratic bodies involved has inevitably made decisions harder, with no consensus reached thus far. Bitcoin isn’t considered to be money as such, nonetheless it is considered to act like money.
A thriving Bitcoin market in the US features a more uncertain future for the present time, and any conclusive legislation in the US could either employ a positive, or a very negative impact on the continuing future of Bitcoin.
So, Should You Buy Bitcoin?
The solution depends mostly on how risk averse you are. Bitcoin certainly isn’t going to be a smooth investment, however the potential of the currency is huge.