If you’ve been keeping an eye on the news at all over the last month or so, you have undoubtedly seen a story or two about Bitcoins. For years this crypto-currency has been a favorite among Magic The Gathering fans and those looking to fulfill a chemical addiction without the authorities catching on.
With each passing day though, Bitcoins are finding their way into mainstream markets, and are poised to become a real alternative to government issued money. On top of all this is a steadily growing “stock exchange” for Bitcoins, which is making smart day traders a fortune. Could you mining be one of those day traders? Will your favorite online shop ever take Bitcoins? Let’s explore below so you can better understand why you should buy Bitcoins now.
Most people that choose to buy Bitcoins do so for the investment value. A little over a year ago Bitcoins were worth around 40 dollars each. Last month the currency reached an all time high at about $206, and is currently holding steady in the $100 range. Fortunes have been made by buying Bitcoins and selling them at the right time.
The Bitcoin mini bubble burst last month, and this has scared off a few novice investors; but this is actually a consistent occurrence. The important thing to realize is that each time that the currency recovers, it jumps to an even higher value. It is volatile; but very profitable. Plus, with a limited number of Bitcoins in existence the value is expected to continue climbing for the foreseeable future.
What drives that growth though? It isn’t just speculation, this would cause Bitcoin to collapse like so many other crypto-currencies of the past. Bitcoin survives and continues to grow because it is actually seeing adoption online. Currently, this is limited to singular outlets. Online clothing shops, service providers (coding, design, etc.), and other “novelty” products make up the majority of Bitcoin adopters so far; but they are just the first wave.
Currently, PayPal is trying to find a way to adopt Bitcoin into its current model, and this could mean that partner eBay isn’t far behind. This will lead to an explosion of Bitcoin use online. But there is an offline presence as well, with the first Bitcoin ATM opening earlier this month. Content aggregation site Reddit had a post earlier this week depicting a convenience store that had its very own “We accept Bitcoin” sticker, the only thing holding them back is better implementation.