Should you buy Bitcoin?

As the current world front runner in the Crypto Currency market, Bitcoin has made some serious headlines, and some serious fluctuations in the last 6 months. Almost everyone has heard of it, and almost everyone has an opinion Some cannot fathom the idea that a currency with any value can be created from nothing, while some love the idea that something without government control can be traded as a valuable entity in its own right.

Where are you on the “Should I buy Bitcoin?” 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 have seen the price go from $20 a coin in February, up to $260 a coin in April, back to $60 in March, and back to $130 in May. The price has settled at around $100 per Bitcoin, but what happens next is anyone’s guess.

The future of Bitcoin is ultimately based on two major variables: its adoption as a currency by a wide public, and the absence of prohibitive intervention of the Government.

The Bitcoin community is growing rapidly, interest in the Crypto currency is spreading dramatically online, and new services are accepting Bitcoin payments more and more. Blogging giant WordPress accepts Bitcoin payments and Africa-based mobile app provider Kipochi have developed a Bitcoin wallet that will enable Bitcoin payments on mobile phones in developing countries.

We have already seen people make millions on the currency. We are seeing an increasing number of people experimenting with living solely on Bitcoin for months on end, while recording the experience for documentary viewing.

You can buy takeaway in Boston, coffee in London, and even a few cars on Craigslist with Bitcoin. Bitcoin searches took off in 2013, with the April rise and subsequent fall in the price of Bitcoin. Last week, the first major acquisition of a Bitcoin company was made for SatoshiDice, an online gaming site, for 126,315 BTC (about $11.47 million), from an undisclosed buyer.

This rapid growth in awareness and adoption looks set to continue, if confidence in the currency remains strong. Which leads to the second dependency. Government regulation.

Although specifically designed to work independently of Government control, Bitcoin will inevitably be affected by Governments in some way. This must be the case for two reasons.

First, to achieve high levels of adoption, Bitcoin will need to be accessible to a large number of people, and this means spreading beyond the realms of hidden transactions to normal everyday transactions for individuals and businesses. Second, these Bitcoin transactions could become a traceable part of people’s taxable wealth, to be declared and regulated with any other type of wealth.

The European Union has already stated that Bitcoin is not classified as a fiat currency, or as money, and as such, it will not be regulated in its own right. In the United States, the system of 50 states and the number of bureaucratic bodies involved has inevitably made decisions more difficult, with no consensus reached so far. Bitcoin is not considered as money as such, but it is considered as money.

A prosperous Bitcoin market in the United States has a more uncertain future for now, and any conclusive legislation in the United States could have a very positive, or very negative effect on the future of Bitcoin.

So, should you buy Bitcoin?

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