I decided to take a serious look at Bitcoin for the first time in October of 2012. I was well aware of the digital currency, but did not think an article was warranted. It was, however, increasingly becoming the subject of questions we were receiving from readers. As part of my initial research into the digital currency, I purchased a modest $20 amount. This was primarily to go through the 'buying' process which can be a little involved, and was integral to my piece. At the time of my purchase, the cost of a single Bitcoin was only $12. My $20 investment was worth more $1,400 on Monday when Bitcoin reached an all time high of $900. Bitcoin has rallied before, but never like this.
The digital currency has grown dramatically in popularity due to two very unique benefits it offers. First, Bitcoin can be purchased and held on a completely anonymous basis. Since the currency is decentralized it also represents a safe haven from confiscation ( which makes it a favorite of those concerned with asset protection). These two benefits have brought with them a great deal of government scrutiny. In fact, in recent months it was widely believed that the United States and other governments around the world were making a concerted effort to wipe out the currency.
Most recently, the tide has shifted and the U.S regulators have changed their focus. Rather than pouring their energy into how to shut down the virtual currency, the thrust is now on regulation. While government meddling was not initially welcomed by Bitcoin enthusiasts (who enjoy the wild west nature of it), it is now seen by many as a win-win for both sides. The regulation of Bitcoin is expected to lead to its long awaited legitimacy. No longer would the virtual currency be considered a shadowy form of commerce. No longer would there be any question about its future viability.
Regulation may impinge some on the anonymous nature of Bitcoin, but the offsetting benefits are expected to be huge. Two different Senate Committees held hearings this week. The list of issues and concerns include - how to prevent money laundering, the use of the currency in illegal trade (drug trafficking, etc...), and taxation issues. These are all legitimate concerns that I believe can be resolved to the satisfaction of all parties concerned.
Some have asked me how high I think Bitcoin can go. Honestly, I am shocked at the one year movement from $12 to $900. Nonetheless, there are many that think that we have much higher to go. One analyst, Max Keiser, believes that a one million dollar value is possible. Wow, that is way beyond what my imagination can comprehend, but it is interesting to fantasize about what my little $20 investment may become. I am by no means suggesting that anyone run out an invest thousands into Bitcoin, but if the future is as bright as it appears to be, even a modest $100 could potentially turn into a fortune.
If you are interested in learning more about Bitcoin, I do have a terrific resource for you. Several months ago, I taught a three week class on the virtual currency and the step-by-step process on how to get started. This class is now free to members of ChristianMoneyPlus. If you simply want to follow the price movement of Bitcoin you can do that at the world's largest Bitcoin exchange, Mt. Gox.
*** How to Get Started With $50 (New buying method).
Helping you make the most of God’s money!