Bitcoin has been a buzzword recently, future into each major new outlet. From Bloomberg, to Wired, The New York Times, Wall Street Journal, and others, the media is having a field day with the topic. According to Anthony Gallippi, CEO of Bitpay payment processor, “Bitcoin is a more secure, faster, and more affordable option for transferring funds.” In technological terms, bitcoins are a finite, verifiable, open-sourced, decentralized virtual currency that relies upon cryptography for security. As bitcoin prices lead headlines, you might be wonder whether you should invest in the trendy cryptocurrency.
News that Nasdaq will begin supporting bitcoin futures is “a clear significance that the established parts of the financial services business are embracing digital currencies,” said Richard Levin, chair of the financial services technology and regulation training at law firm Polsinelli PC.
“You look at the information that the Chicago Mercantile Exchange and Nasdaq — two of the top exchanges — are embracing financial products connected to a digital asset. They aren’t charge into this cavalierly. They had talks with their regulators.
Still, Levin said regulators are possible to be worried with the rise in fame in bitcoin among person retail investors who may not be as sophisticated and aware of bitcoin’s tendency for fluctuations.
It’s just too unpredictable. The virtual currency is recognized for wild fluctuations in price. The value of one bitcoin—which was created in 2008 by an unidentified programmer or group of programmers—reached its all-time high of $1,165.89 in November 2013 before taking a major dive, according to CoinDesk data.
If you do choose to take the plunge and purchase a bitcoin, make sure it’s a very diminutive part of your diversify portfolio—and that you can have enough money to lose your investment. “I would never recommend this on a stand-alone basis,” Harvey said.
There you have it folks. With this, you now have equally sides of the coin. Bitcoin, as you can see, is not ideal. It does have many advantages that substantial currencies do not provide its users; however, it also has its disadvantages. This is mostly due to the fact that Bitcoin is still a comparatively young and new currency. People are just beginning to become more aware of it.