As the world leader in the cryptocurrency market, Bitcoin has been in serious headlines and some serious fluctuations over the past 6 months. 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 something without government control can be traded as a valuable entity on its 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?
Is it possible to make money on bitcoins?
In the last 6 months alone, we have seen the price rise from $ 20 per coin in February to $ 260 per coin in April, drop to $ 60 in March and rise again to $ 130 in May. Now the price has risen to about $ 100 per bitcoin, but what will happen next can only be guessed.
The future of bitcoin ultimately depends 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 expanded dramatically online, and new services are increasingly accepting payments in bitcoins. Blog giant WordPress accepts payments in bitcoins, and African mobile app provider Kipochi has developed a bitcoin wallet that will allow you to pay for bitcoins on mobile phones in developing countries.
We have already seen how people make millions on currency. We see an increasing number of people experimenting with life only on bitcoins for months on end, recording this experience for watching documentaries.
You can buy takeaway food in Boston, coffee in London and even a few cars on Craigslist using bitcoins. Bitcoin searches increased in 2013 with an increase in April and a subsequent drop in the value of bitcoin. Last week, the first major acquisition of the bitcoin company was made for SatoshiDice, an online gambling site, for 126,315 BTC (about $ 11.47 million) by an unknown buyer.
This rapid rise in awareness and absorption seems to continue if confidence in the currency remains strong. Which leads to a second dependency. State regulation.
Although bitcoin is specifically designed to operate independently of state control, government will inevitably be affected in some way by governments. This should be for two reasons.
First, to achieve a high level of acceptance Bitcoin must be accessible to a large number of people, which means spreading beyond hidden transactions to regular everyday transactions for individuals and businesses. Second, these bitcoin transactions can become a trackable part of taxable wealth that 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 currency or money, and therefore will not be regulated independently. In the United States, 50 government systems and the number of bureaucracies involved have inevitably complicated decisions that have not yet been reached by consensus. Bitcoin is not considered money as such, but it is believed to act as money.
The thriving bitcoin market in the US currently has a more uncertain future, and any final legislation in the US can have both very positive and very negative impacts on the future of bitcoin.
So, should you buy bitcoin?
The answer mostly depends on how much you are not at risk. Of course, bitcoin will not be a simple investment, but the potential of this currency is huge.