Should you buy bitcoin?

As the world’s number one runner in the cryptocurrency market, Bitcoin has made some serious headlines and some serious volatility in the past six months. Almost everyone has heard about it, and almost everyone has an opinion. Some cannot fathom 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 an entity of value in its own right.

Where do you sit on “Should I Buy Bitcoin?” Perhaps the ultimate fence boils down to one question: Can I make money with Bitcoin?

Can you make money from bitcoin?

In just the past six months, we’ve seen the price go from $20 a coin in February, to $260 a coin in April, then down to $60 in March, and back to $130 in May. The price has now settled at around $100 for Bitcoin, but what happens next is anyone’s guess.

Bitcoin’s future ultimately depends on two main variables: its adoption as a currency by a broad audience, and the absence of costly government intervention.

The Bitcoin community is growing rapidly, interest in the Crypto currency has spread widely across the Internet, and new services are increasingly accepting Bitcoin payments. The blogging giant, WordPress, accepts Bitcoin payments, and mobile application provider in Africa, Kipochi, has developed a Bitcoin wallet that will allow Bitcoin payments on mobile phones in developing countries.

We have already seen people earn millions in currency. We are seeing increasing numbers of people experimenting with just Bitcoin for months in a row, while recording the experience to watch the documentary.

You can buy takeaway in Boston, coffee in London, and even some cars on Craigslist with Bitcoin. Bitcoin searches surged in 2013, with the rally in April and the subsequent fall in the price of Bitcoin. Last week, the first major Bitcoin acquisition for SatoshiDice, an online gambling site, was made for 126,315 BTC (approximately $11.47 million), by an undisclosed buyer.

It appears that this rapid growth in awareness and uptake will continue, if confidence in the currency remains strong. Which leads to the second dependency. government regulation.

Although it is specifically designed to operate independently of government control, Bitcoin will inevitably be influenced by governments in some way. This should be the case for two reasons.

First, to achieve high levels of adoption, bitcoin needs to be available to large numbers of people, and that means spreading beyond the realm of hidden transactions into the normal day-to-day transactions of individuals and businesses. Second, these bitcoin transactions can become a traceable part of individuals’ taxable wealth, to be announced and regulated along with any other type of wealth.

The European Union has already declared that bitcoin is not classified as a fiat currency, or cash, and as such, will not be regulated per se. In the United States, the fifty-state system and the number of bureaucratic bodies involved have inevitably made decisions more difficult, with no consensus yet reached. Bitcoin is not considered money in itself, but rather it is considered cash.

The booming Bitcoin market in the US has an uncertain future at the moment, and any crucial legislation in the US could have a very positive or very negative impact on Bitcoin’s future.

So, should you buy bitcoin?

The answer mostly depends on how risky you are. Bitcoin will certainly not be a smooth investment, but the potential of this currency is huge.