Many people are not entirely sure what to make of the bitcoin phenomenon. On one hand, some say it’s a virtual commodity; on the other hand, others believe that it is a currency and may even eventually become a means of exchange.
Despite the volatility of the system, however, you may find that it’s a very stable currency. It is one of the easiest of currencies to change hands, and the reason why so many have come to own bitcoins is simply because of its incredible stability. It is especially stable and continues to appreciate in value, when combined with other goods and services that tend to do well in value.
For example, the US dollar itself tends to appreciate in value when other major countries are not doing so well. Bitcoin has a lot in common with the US dollar.
Of course, as the gold standard falls apart, the currency which is backed by the central bank itself (the dollar) is also decreasing in value. Bitcoin is used worldwide because it’s easy to use and move around the world. This makes it ideal for people who live in a country where the dollar is more popular than the local national currency.
Additionally, there are many countries in the world where the US dollar is already completely accepted as a means of exchange. If you live in one of these places, then the fact that you can purchase things in bitcoin from anywhere in the world is a great advantage to you.
As a stable economy, however, it’s also worth noting that your money will retain its value forever. The reasons for this are twofold. First, it is a digital currency, and so is not subject to the fluctuations which other currencies suffer through.
Second, as previously mentioned, bitcoin is a digital form of money, which means that the value will only depreciate if you attempt to use it in the same way as a hard money. This is something that is being tested by most people today who’ve never tried the digital form of money.
Perhaps the most exciting aspect of this volatile currency is that it’s fairly easy to buy into. With a low minimum transaction amount and high maximum buy amount, it’s possible to buy into a lot of bitcoins for very little money.