Today, Bitcoin's price stands at about $5,700. Over the past year, it's grown more than 700% in value, a remarkable return on investment. But can Bitcoin really stand alone as an asset or will it eventually fail as governments either regulate or ban the technology?
Why Bitcoin is here to stay
Bitcoin was created for the purpose of operating outside governments. A decentralized currency without a middleman has numerous benefits, and takes less time with transactions as well. Let's take a look at a few of those benefits.
1. It's digital
Who carries cash these days?
Poker players and maybe your grandma. Today, currency is digital, and there's no currency more digital than the ones simply based on the internet. Individuals using Bitcoin can interact using their phones, and simply send money to each other that way. Individuals can even look at Bitcoin as if it is their own bank account. There are even vehicles that pay interest on Bitcoin holdings! And that's another reason why Bitcoin could be here to stay.
2. It's not a bank
These days, it's hard to have a day go by without a story about some bank trying to convince customers to open up multiple checking accounts or make some investments in mutual funds. Bitcoin doesn't do either of those things, and acts just like a bank.
Also, banks make a fortune in financial transactions, but Bitcoin is now an alternative to those payment options.
3. It could be universal
There is no currency other than Bitcoin more suited to take on the role of universal currency. It's not regulated by any sovereign nation, and the primary factor behind the usage of Bitcoin is greed.
If everyone acts in their individual best interest, they are acting according to the natural human desire of greed.
Why it won't work
It's hard to argue that Bitcoin can really be a store of value until its prices settles into an appropriate range. Right now, it the cryptocurrency fluctuates in value massively every single day.
Bitcoin also isn't backed by any government, which means money associated with it is definitely not guaranteed. In addition, investors who use Bitcoin are able to use it in highly speculative ways that aren't entirely regulated by the US government. There are some initial coin offerings (ICOs) that have turned out to be pure scams. On the other hand, there are several companies that are using ICOs properly to start and fund their companies.
Personally, I believe Bitcoin (Btc) and Ethereum (ETH) will succeed in the new world of currency, as more and more people adopt the idea of digital currency. That makes it worth a buy at this point in time, even at its current price point.
