As a leading world leader in the cryptocurrency market, Bitcoin has made some serious headlines and some serious fluctuations in the last 6 months. Almost everyone has heard of them and almost everyone has an opinion. Some may not understand the idea that a currency of any value can be created out of nothing, while some like the idea that something without government control can be traded as a valuable entity in itself.
Where are you sitting on “Should I buy bitcoin?” The fence probably comes down to one question: Can I make money from bitcoin?
Can you make money from bitcoin?
In the last six months alone, we have seen the price rise from $ 20 per coin in February, to $ 260 per coin in April, back to $ 60 in March, and again to $ 130 in May. The price has already been set at around $ 100 for bitcoin, but what will happen next can be guessed.
The future of bitcoin is ultimately based on two main variables: its acceptance as a currency by a wide audience and the absence of excessive government intervention.
The Bitcoin community is growing rapidly, interest in cryptocurrency has spread dramatically online, and new services are increasingly accepting bitcoin payments. The blogging giant WordPress is accepting bitcoin payments, and Africa-based mobile application provider Kipochi has developed a bitcoin portfolio that will allow bitcoin payments to mobile phones in developing countries.
We have already seen how people make millions from currency. We are seeing a growing number of people experimenting to live with bitcoin for months on end, while recording the experience of watching documentaries.
You can buy home food in Boston, coffee in London and even a few cars on Craigslist using bitcoin. Demand for bitcoin increased in 2013 with the rise in April and the subsequent fall in the price of bitcoin. Last week, the first major acquisition of a bitcoin company for SatoshiDice, an online gambling site, was made for 126,315 BTC (about $ 11.47 million) from an undisclosed buyer.
This rapid growth in awareness and absorption seems to be continuing if confidence in the currency remains strong. Which leads to the second dependence. Government regulation.
Although specifically designed to operate independently of government control, bitcoin will inevitably be affected by governments in some way. This must be the case for two reasons.
First, in order to achieve high levels of utilization, bitcoin will have to be accessible to a large number of people, and this means spreading beyond the realm of hidden transactions to normal daily transactions for individuals and businesses. Second, these bitcoin transactions can become a traceable part of people’s taxable wealth, which can be declared and regulated along with any other type of wealth.
The European Union has already announced that bitcoin is not classified as a currency of fiat or money and as such will not be regulated independently. In the United States, the 50 state system and the number of bureaucrats involved have inevitably made decisions difficult, without consensus being reached so far. Bitcoin is not considered money as such, but it is considered to act as money.
The booming US bitcoin market has a more uncertain future for now, and any final US legislation could have a very positive or very negative effect on the future of bitcoin.
So, do you have to buy bitcoin?
The answer depends mostly on how prone you are to risk. Bitcoin will certainly not be a problem-free investment, but the potential of this currency is huge.