Bitcoin is the current leader in Crypto Currency Market. They have made some significant headlines and experienced some volatility in the last six months. They are a common topic and everyone knows something about them. While some are unable to comprehend the concept of a currency that can be created from anything, others love the idea of something that can be traded without the Government as a valuable entity.
Which side do you place on the “Should Bitcoin Be Purchased?” debate? The “Should I Buy Bitcoin?” fence boils down ultimately to one question: Can Bitcoin Make Me Money?
How can you make money with Bitcoin?
The price of a Bitcoin has changed from $20 to $20 in February to $260 in April to $60 in March to $130 in May. Although the price is now at $100 per Bitcoin, it’s not clear what will happen next.
The future of Bitcoin rests ultimately on two key variables: adoption by a large audience as a currency and the absence any prohibitive government intervention.
The Bitcoin community is rapidly growing, the Crypto currency has received a lot of attention online and more services are accepting Bitcoin payments. WordPress, a blogging giant, accepts Bitcoin payments.
Kipochi, an African mobile application provider, has developed a Bitcoin wallet which will allow Bitcoin payments to be made on smartphones in developing countries.
Already, people have made millions using the currency. There are increasing numbers of people who experiment with Bitcoin living for several months and recording their experience for documentary viewing.
Bitcoin can be used to buy takeout in Boston and coffee in London. You can also purchase a few cars through Craigslist. With the rise in Bitcoin prices and subsequent decline in price, searches for Bitcoin have exploded in 2013. An undisclosed buyer made the first major acquisition of a Bitcoin company for SatoshiDice (an online gambling site) for 126.315 BTC (about 11.47 million).
If trust in the currency is maintained, this rapid increase in awareness and uptake should continue. This leads to the second dependency. Regulation by the government.
Bitcoin was designed to operate independently of Government control. However, Governments will undoubtedly have an impact on Bitcoin. Two reasons must this be true.
First, Bitcoin must be easily accessible for large numbers of people to gain widespread adoption. This means that it will not only be used to transact in secret transactions but also to conduct everyday transactions for individuals as well as businesses. These Bitcoin transactions may be a part of the taxable wealth of individuals and can be tracked.
Already, the European Union declared that Bitcoin is not classified as Fiat currency or money and will not be regulated. The 50-state system in the USA and the number of bureaucratic entities involved have made it more difficult to reach consensus. Although Bitcoin is not money, it is thought to behave like money.
The future of a thriving Bitcoin market in America is uncertain. Any US legislation that has any kind of conclusive effect on Bitcoin’s future could have either a positive or negative impact.
Should You Buy Bitcoin?
It all depends on your risk tolerance. Although Bitcoin is not going to be an easy investment, it has huge potential.