As the current world leader in the cryptocurrency market, Bitcoin has made headlines in the last 6 months and has fluctuated greatly. Almost everyone has heard of it, and almost everyone has an opinion on it. Some may not realize that a currency of any value can be created from scratch, while others like the idea that something can be traded without government control as an independent value unit.
Where are you on the question “Should I buy bitcoins?” Fence probably ends up coming down to one question: can I make money with bitcoins?
Can you make money with bitcoins?
In the last 6 months alone, we have seen the price drop from $20 per coin in February to $260 per coin in April, then to $60 in March and $130 in May. The price now is about 100 dollars per bitcoin, but what happens next is the bet.
The future of Bitcoin ultimately depends on two important variables: its recognition as a currency by a large audience and the absence of prohibitive government intervention.
The Bitcoin community is growing rapidly, interest in cryptocurrency on the Internet has grown significantly, and new services are increasingly accepting payments in bitcoins. Blogging giant WordPress accepts payments in bitcoins, and African mobile app provider Kipochi has developed a bitcoin wallet that allows payments in bitcoins on mobile phones in developing countries.
We’ve already seen people make millions with money. We see that more and more people live alone with bitcoins for months, including watching documentaries.
You can buy takeaway food in Boston, coffee in London and even a few cars on Craigslist for bitcoins. In 2013, the rapid growth of Bitcoin research occurred: in April, the price of Bitcoin rose and then fell. Last week, an anonymous buyer made the first major purchase by bitcoin company for online betting site SatoshiDice for 126,315 BTC (approximately $11.47 million).
This rapid increase in awareness and acceptance seems to be continuing as confidence in the currency remains high. Which leads to a second dependency. Government regulations.
Despite the fact that Bitcoin is specifically designed to operate independently of state control, it will inevitably be under the influence of the government. This should be the case for two reasons.
First, to achieve a high level of acceptance, Bitcoin must be available to a large number of people, which means going beyond transactions hidden in ordinary day-to-day transactions for individuals and businesses. Second, these bitcoin transactions can become a tracked part of the taxable assets of people who need to be reported and regulated along with any other asset.
The European Union has previously stated that bitcoin is not classified as a currency or fiat currency and, as such, will not be regulated as such. In the United States, a system of 50 states and the number of bureaucracies involved inevitably complicated decisions without reaching consensus yet. Bitcoin as such is not considered money, but is considered money.
The thriving bitcoin market in the United States now has a more uncertain future, and any mandatory legislation in the United States could have both a very positive and negative impact on the future of Bitcoin.
So, is it worth buying bitcoin?
The answer is mostly dependent on your risk aversion. Bitcoin certainly won’t be a good investment, but the potential of this currency is huge.