Bitcoin has been making some major headlines and experiencing some major fluctuations over the past six months as the world’s current leader in the crypto currency market. The majority of people have heard of them and have a position on them. Some find it incomprehensible that a currency with any value can be created out of thin air, while others adore the notion that something free of governmental regulation can be traded as a valuable thing in and of itself.
Where you sit on the “Should I Buy Bitcoin?” fence probably ultimately boils down to one question: Is Bitcoin a Profitable Asset?
Is it Possible to Profit from Bitcoin?
Just in the past six months, the price has changed from $20 per coin in February to $260 per coin in April, back down to $60 in March, and then back up to $130 in May. Although the price of a Bitcoin has reportedly reached a plateau around $100, it is unclear what will happen next.
The adoption of Bitcoin as a currency by a large audience and the absence of onerous government intervention are the two key factors that will ultimately determine its future.
The Bitcoin community is expanding quickly, interest in the cryptocurrency has grown significantly online, and more new services are beginning to accept Bitcoin payments. A Bitcoin wallet has been created that will enable Bitcoin payments on mobile phones in developing countries. WordPress, a popular blogging platform, already accepts Bitcoin payments. Kipochi, a mobile application developer based in Africa, also accepts Bitcoin payments.
People who used the currency have already made millions of dollars. A growing number of people are attempting to survive solely on Bitcoin for extended periods of time while documenting the experience for public consumption.
On Craigslist, you can use Bitcoin to purchase a takeout meal in Boston, a cup of coffee in London, and even a few vehicles. With the price increase in April and subsequent decline, searches for Bitcoin have increased dramatically in 2013. The first significant acquisition of a Bitcoin company occurred last week when an unidentified buyer paid 126,315 BTC (roughly $11.47 million) for the online casino SatoshiDice.
If confidence in the currency is maintained, this quick increase in awareness and adoption appears set to continue. which results in the second dependency. Governmental control.
Despite being specifically created to operate outside of governmental oversight, governments will inevitably have some sort of impact on Bitcoin. Considering two factors, this must be the case.
First and foremost, for Bitcoin to be widely adopted, it needs to be available to a wide range of users. To do this, it needs to move beyond the realm of covert transactions and into regular transactions that people and businesses conduct every day. Second, just like any other type of wealth, these Bitcoin transactions may one day be declared and regulated alongside other forms of taxable wealth as a trackable component of individuals’ wealth.
Bitcoin won’t be subject to regulation in and of itself, according to the European Union, which has already declared that it is not a fiat currency or money. No consensus has yet been reached in the US due to the 50 state system and numerous bureaucratic bodies involved. Bitcoin is regarded as acting like money even though it is not regarded as money in the traditional sense.
A thriving Bitcoin market in the US faces an uncertain future for the time being, and any final US legislation could either have a very positive or a very negative impact on the future of Bitcoin.
As a result, should you buy bitcoin?
The solution largely depends on how risk-averse you are. Even though investing in bitcoin won’t be easy, the potential of this currency is enormous.