Bitcoins – everybody wants some!
Second post in a Trilogy
If you missed the first part of this trilogy, click here to catch up.
As I’m writing this post, Bitcoin’s price is ranging around $140 and it’s by far the best investment I’ve made.
Is it a bubble? Will the price keep going up?
My answer is yes and yes.
The future/stability of the Bitcoin’s price rate depends mostly on its adoption by retailers, utility companies and all other service companies around the world.
Today people are buying Bitcoins (BTC’s) without having many places to actually spend them and this is the main reason why we might be dealing with a bubble. However, the adoption of BTC among retailers and banks should be quick to catch up with the growing bubble.
As more retailers accept Bitcoin payments the bubble will get smaller and the Bitcoin price will get in- line with the real world outside .
As a matter of fact, you too will now be able to shrink the Bitcoin bubble by depositing Bitcoins in eToro over the next few days and receiving US dollars to use in your account to trade all the instruments we offer.
Why is the price of Bitcoin still going up?
1. Bank panic after Cyprus crisis and general lack of confidence in the banks.
2. The amazing media coverage on Bitcoin around the world is keeping money flowing into the biggest BTC exchanges.
3. It’s a Cool investment – people have fun using BTC and by that giving real value to the coin.
The 3 biggest exchanges you can buy BTC today are MTgox.com holding around 67% of market volume and Bitstamp.com/BTC24.com, holding 5-6% of total volume.
Due to the high volumes some of the exchanges are crashing when traffic is high. Don’t worry though, this does not affect the stability of the currency, only the ability to trade at that moment.
Some major risks to consider before investing:
- Regulation risk – Governments might see BTC as a big threat to the bank systems and will decide to take extreme measures against it.
- Technology risk - A chain fork in the block system or any other error can end up causing a total loss of confidence.
Until next time, happy trading everyone and…give us your Bitcoins!