As the current world leader in the cryptocurrency market, in the last 6 months Bitcoin has been releasing serious headlines and serious fluctuations. Almost everyone has heard about them, and almost everyone has their own opinion. Some may not understand the idea that currency of any value can be created from nothing, while some like the idea that without government control one can trade as a valuable entity on one’s own.
Where are you sitting on “Should I buy bitcoin?” the fence probably ultimately boils down to one question: can I make money on bitcoins?
Can you make money on bitcoins?
In just the last 6 months, we’ve seen the price go from $ 20 per coin in February, to $ 260 in April, to $ 60 in March and to $ 130 in May. Now the price has dropped to about $ 100 per bitcoin, but what will happen next can be guessed.
The future of bitcoin ultimately rests on two main variables: its adoption as a currency by a wide audience and the lack of prohibitive government intervention.
The bitcoin community is growing rapidly, interest in cryptocurrencies has spread dramatically online, and new services are increasingly accepting bitcoin payments. Blog giant WordPress accepts bitcoin payments, and African mobile app provider Kipochi has developed a bitcoin wallet that will allow bitcoin payments on mobile phones in developing countries.
We have already seen how people earn millions on currency. We are seeing an increasing number of people experimenting for a few months with life on bitcoins only, recording experiences for watching documentaries.
You can buy takeaways in Boston, coffee in London and even a few machines in Craigslist using bitcoin. The search for bitcoins began in 2013 with an April rise and a subsequent drop in bitcoin prices. Last week, an unknown buyer made the first major acquisition of a bitcoin company for the gambling site SatoshiDice for 126,315 BTC (about $ 11.47 million).
This rapid rise in awareness and absorption is likely to continue if confidence in the currency remains strong. Which leads to a second dependency. State regulation.
Although bitcoin is specifically designed independently of government control, governments will in some ways be influenced by governments. This should be for two reasons.
First, to achieve a high level of acceptance, Bitcoin must be available to a large number of people, which means spreading beyond hidden transactions to regular day-to-day transactions for individuals and businesses. Second, these bitcoin transactions can become part of human taxation, which can be tracked and which will be declared and regulated along with any other type of wealth.
The European Union has already stated that bitcoin is not classified as Fiat’s currency or as money and as such will not be regulated by itself. In the US, 50 government systems and the number of bureaucrats involved inevitably complicated decisions until a consensus was reached. Bitcoins are not considered money as such, but act as money.
Today, the thriving bitcoin market in the US has a more uncertain future, and any final legislation in the US can either have a very positive or very negative impact on the future of bitcoins.
So, should you buy bitcoin?
The answer depends mainly on how much you are at risk. Bitcoin will certainly not become a smooth investment, but the potential of this currency is huge.