As the current world leader in the cryptocurrency market, Bitcoin has been on serious headlines and with serious fluctuations in the last 6 months. Almost everyone has heard of them, and almost everyone has their own opinion. Some may not grasp the idea that a 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 in itself.
Where do you sit on “Should I buy Bitcoin?” the fence probably boils down to one question: Can I make money from bitcoin?
Can You Make Money From Bitcoin?
In just the last 6 months, we’ve seen the price go from $ 20 per coin in February, to $ 260 per coin in April, back to $ 60 in March and back to $ 130 in May. The price is now set at around $ 100 for Bitcoin, but anyone can guess what will happen next.
The future of bitcoin ultimately rests on two main variables: its adoption as a currency by the general public and the absence of prohibitive government intervention.
The Bitcoin community is growing rapidly, interest in cryptocurrency has expanded dramatically online, and new services are increasingly accepting Bitcoin payments. The blogging giant, WordPress, accepts Bitcoin payments, and African mobile application provider Kipochi has developed a Bitcoin wallet that will enable Bitcoin payments on mobile phones in developing countries.
We have already seen how people make millions on currency. We see an increasing number of people experimenting for months with life just from Bitcoin, while filming the experience of watching documentaries.
You can buy takeaway food in Boston, coffee in London, and even a few cars on Craigslist using Bitcoin. Bitcoin searches rose in 2013, with growth in April and a subsequent drop in the price of bitcoin. Last week, the Bitcoin company’s first major acquisition for SatoshiDice, an online gambling site, for 126.315 BTC (about $ 11.47 million), was made by an unknown buyer.
It seems that this rapid growth in awareness and acceptance will continue if confidence in the currency remains strong. Which leads to other addictions. Government regulations.
Although specifically designed to operate independently of state control, Bitcoin will inevitably be affected by governments in some way. This must be the case for two reasons.
First, in order to achieve a high level of adoption, Bitcoin will have to be available to a large number of people, which means expanding beyond the realm of hidden transactions to normal everyday transactions for individuals and businesses. Second, these Bitcoin transactions could become part of the taxable wealth of people that can be tracked, declared and regulated along with any other type of wealth.
The European Union has already announced that Bitcoin is not classified as a fiat currency, nor as money, and that as such it will not be regulated by itself. In the US, 50 state systems and the number of bureaucratic bodies involved have inevitably made decisions difficult, without consensus reached so far. Bitcoin is not considered money as such, but it is considered to act as money.
A successful U.S. bitcoin market has a more uncertain future for now, and any final U.S. law could have a very positive or very negative impact on the future of Bitcoin.
So, should I buy Bitcoin?
The answer mostly depends on how much you are at risk. Bitcoin will certainly not be an easy investment, but the potential of this currency is huge.