Bitcoin has been all over the news and many opinions have been posted and shared. Good news, positive opinions, bad news, negative opinions and everything in between. Just a year ago, the currency could be bought for just a few dollars. Just last month it was around $76 and jumped $12, to $90 in one single day. Two weeks later it was at $250 and then a hard crash to $60. Since becoming somewhat of a celebrity overnight, there has been quite a bit of demand and speculation about this new currency. Media sensation and speculation made many people try to get a piece of the fortune to be made with Bitcoin. Many profited and many lost a small fortune by betting on Bitcoin.
So, now that the bubble has burst and the dust has settled, the question remains: should you buy bitcoins? You’ll need to ask yourself what it means to you, since buying bitcoins means different things to different people.
Here are a few reason why people would buy bitcoins:
Short term investment
Some like to take advantage over the amount of speculation about the Bitcoin topic, with its relative volatility, one could watch the market and make a substantial gain (or loss), based on trends or the daily and many positive and negative news reports.
Long term investment
Others confide in the long term prospects; better and more robust trading exchanges are popping up left and right, new Bitcoin related applications are appearing everywhere and everyday more and more stores are accepting Bitcoin as a form of payment.
Given that there will be only 21 million bitcoins available for a world of people, it sure sounds like a bargain to buy a few now at its current price.
Yet others are enthusiast and true believers of the fundamental concept that Bitcoin offers as a global currency with no single authority. They see it as an opportunity to be part of a sort of revolution, that many people around the world will embrace.
They think it still has to gain full popularity and while more people want in on it and use it as a real currency to make everyday purchases and accepted everywhere around the world as a common global coin.
There are those that prefer to have more control over some of their assets. Having money in stocks, savings or any other financial instruments requires some trust in a third entity, whether that is a bank, brokerage firm or fund manager.
These are managed by people and regulated by laws, made by, one could argue, a handful of people. Therefore, one can never be sure what decisions are made or even the economic and political events that can occur and how that will affect access to these funds. This is perhaps especially the case in less than stable countries, where assets have been frozen by governments against the will of their owners.
Many also see it as way of secretly storing portions of their assets into a currency that is secure and out of reach from the imposed limitations of their government, a spouse or anyone else for that matter.
Yet there are other that would like to own funds, or make purchases, without their names ever being attached to them, for whatever reason they may have.
Ultimately Bitcoin seems to have many properties that attracts people with different reason to use it…. and that is the answer to why Bitcoin.