Crypto Currency Vs Fiat Currency

Today, if you want to make a lot of money with Bitcoin, the best thing to do is to go for trading rather than investing. All you have to do is buy and sell your coins and get a small amount of profit after each sale. If you’re just starting out, you’ll have to start from scratch just like everyone else. If you play the game well, you can earn a lot of money in a short period of time. In this article, we have some tips to help you have a successful career in cryptocurrency trading. Read on to learn more.

There are many important points you need to consider if you want to make a ton of money trading bitcoins. It all depends on your experience and mind. Without further ado, let’s go over some tips that will help you make a lot of money and avoid some common mistakes.

1. Understand the risk first

This is one of the most common mistakes made by most traders. If you are not aware of the risk of this trade, you should not embark on this adventure. If you are not aware of the problems, you can lose a lot of money.

Before investing your hard-earned money, you can assess the risk. So this is one of the most important things to consider.

2. Diversify your investments

When it comes to Bitcoin trading, we suggest you diversify your investments. This applies to all types of investments. In other words, if you only want to invest in Bitcoins, you are making a mistake. You also need to invest your money wisely in other cryptocurrencies.

This is important if you want to be safe and reduce your losses and turn them into profits.

3. Be patient

Money doesn’t grow on trees. All traders enter the world of cryptocurrency to make money. However, you cannot make money immediately after you have purchased the desired cryptocurrency. And then there is no guarantee that you will continue to make profits throughout your career. So you can prepare yourself for such a situation.

4. Don’t be greedy

Finally, it is important that you stay away from greed as it is your biggest enemy when it comes to cryptocurrency trading. As Bitcoin prices continue to fluctuate, you need to be patient. It is not good to be afraid of fluctuations and sell your coins immediately. So, if you don’t have patience, you cannot succeed in your trading career.

Summary

In short, these are some of the most useful tips you can try if you want to succeed in cryptocurrency trading. If you play this game well, you can make good money in a couple of years, if not months.

The birth of Bitcoin in 2009 opened up opportunities to invest in a whole new kind of asset class – cryptocurrency. Lots went into space early.

Intrigued by the huge potential of these young but promising assets, they bought cryptos at low prices. So the growth in 2017 has made them millionaires/billionaires. Even those who did not place large bets made decent profits.

Three years later, cryptocurrencies are still profitable and the market is here to stay. Maybe you are already an investor/trader or maybe you are about to try your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.

Cryptocurrencies have a bright future

According to a report called Imagine 2030 published by Deutsche Bank, credit and debit cards will become obsolete. They will be replaced by smartphones and other electronic devices.

Cryptocurrencies will no longer be seen as outcasts, but as alternatives to existing monetary systems. Their advantages such as security, speed, minimal transaction fees, ease of storage and relevance in the digital age will be recognised.

Specific regulatory guidelines will promote cryptocurrencies and promote their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030 and nearly 350 million by 2035.

An opportunity to be part of a growing community

#IndiaWantsCrypto by WazirX the company recently completed 600 days. This has been a massive movement to support the adoption of cryptocurrencies and blockchain in India.

In addition, the recent Supreme Court decision overturning the RBI’s ban on crypto-banking from 2018 has created a new surge of confidence among Indian investors in Bitcoin and cryptocurrencies.

The 2020 Edelman Trust Barometer report also points to an increase in people’s faith in cryptocurrencies and blockchain technology. According to the results, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.

As a cryptocurrency investor, you will become part of a thriving and rapidly growing community.

Increased profit potential

Diversification is an important investment rule. Especially at this time when most assets have suffered heavy losses due to the economic hardship caused by the COVID-19 pandemic.

While bitcoin investments have returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have registered triple-digit ROIs. Stock markets, as we all know, have performed horribly. Crude oil prices famously fell below zero in April.

Including bitcoins or any other cryptocurrencies in your portfolio will protect the value of your fund in such uncertain situations in the global market. Billionaire macro hedge fund manager Paul Tudor Jones was also struck by this fact when he announced plans to invest in bitcoin a month ago.

Cryptocurrency markets operate 24X7X365

Unlike regular markets, cryptocurrency markets operate 24 hours a day, every day of the year. This is because digital currency systems are essentially designed using software code protected by cryptography.

The operational plan does not involve human intervention. So you can freely trade crypto or invest in digital assets whenever you want. This is a great benefit! Cryptocurrency markets are very efficient in this regard.

For example, Bitcoin has successfully processed transactions with a 99.98% uptime since its inception in 2009.

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No documents or formalities are required

You can invest in Bitcoin or any other cryptocurrency anywhere and anytime without any extra conditions.

Unlike conventional investment options that require an absurd amount of paperwork to prove yourself as an “accredited investor”, crypto-investing is free for all. In fact, this was the intended purpose of the birth of cryptocurrencies. Democratization of finance/money.

To buy any cryptocurrency at WazirX, you need to open an account for which you simply need to provide some basic information, including your bank account information. Once they’ve been tested for a few hours, you’re good to go.

Sole Proprietorship in Investments

When you buy Bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction is peer-to-peer.

Unlike bonds, mutual funds, stock brokers, no third party “manages your investments” for you. You buy and sell whenever you want.

User autonomy is the biggest advantage of cryptocurrency systems, which provides incredible opportunities to invest and build a corpus on your main capital “independently”.

These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investing journey.

Bitcoin is an online digital currency, just like the dollar or the pound, but with some exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin taps into a peer-to-peer payment system where there are no intermediaries and goods can be securely transferred between any two people on the planet. It is connected to a large network of computers, and the unit of currency for the Bitcoin system (appropriately called a Bitcoin) can simply be purchased by joining the wider network. Bitcoin provides a fast, cheap and secure transaction alternative, but few are willing to go for it. So the one million dollar question still remains: Is Bitcoin a safe investment?

Bitcoin is only a few years old, it’s an interesting creation that has left many in awe and, for the record, has reached a name on the financial company’s top boards. Its popularity has increased and this has led some leading companies such as Virgin Galactic to consider it as an acceptable source of payment. Bitcoin prices are rising up to 10% and continue to dominate as the alpha of the market, and this has made many interested in investing in it.

Another feature of Bitcoin is that it does not have a central bank and is not controlled by a central government. It is a global currency, and its creation and existence lies behind a complex and intricate mathematical algorithm that allows it to monitor government-related failures. Cases of political instability and government absurdity that embarrass the economy and throw years of investment in the currency to the wind do not occur in the cryptocurrency system. This creates a safe and friendly investment opportunity with low inflation risk.

The reverse side

Cryptocurrency has both disadvantages and always surprising advantages. As mentioned, this thing is still taking baby steps; and with that comes great uncertainty. Bitcoin prices are volatile; is currently rising sharply and can range from 30% to 40% per month. The world is still surprised by its appearance, and there are very few bitcoin holders and bitcoin holders. This leads to unanswered questions and cold fear among people, as investing in a new unpredictable “gold mine” can lead to devastating consequences. Its novelty creates unregulation and scares away potential investors.

The mystery surrounding the Bitcoin system is one of the main factors to consider. Anything can happen and everyone involved in the Bitcoin market is on high alert. China stopped using Bitcoin in December 2013, which caused its value to plummet from $1,240 to $576 in just three weeks. Programmers also determine the functionality of this global currency, and many are hesitant to risk their finances for some group of geeks. This discourages many from venturing into the system and greatly increases the risk of Bitcoin investment.

Over time, Bitcoins have become a very well-known and popular form of currency. However, what is Bitcoin? The following article will examine the pros and cons of this currency that came out of nowhere and spread like wildfire. How is it different from regular currencies?

Bitcoin is a digital currency, it is not printed and never will be. They are conducted electronically, and this is also not controlled by anyone. They are produced by people and businesses, creating the first ever form of money known as cryptocurrency. While conventional currencies can be seen in the real world, Bitcoin works through billions of computers around the world. From Bitcoin in the United States to Bitcoin in India, it has become a global currency. However, the biggest difference from other currencies is that it is decentralized. This means that no specific company or bank owns it.

Who created it?

Satoshi Nakamoto, a software developer, suggested and created Bitcoin. He saw this as a chance to have a new currency on the market free from central authority.

Who is printing this?

As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, it is a digital currency. You can even transact online using bitcoins. So you can’t produce unlimited bitcoins? Not at all, bitcoin is designed to never “mine” more than 21 million bitcoins in the world at once. Although they can be broken down into smaller amounts. The hundred millionth part of a bitcoin is called a “satoshi” in honor of its creator.

What is Bitcoin based on?

Bitcoin is mainly based on gold and silver for normal use. However, the truth is that Bitcoin is actually based on pure mathematics. It also has nothing to hide as it is open source. So anyone can look at it to see if it works as they claim.

What are the characteristics of Bitcoin?

1. As mentioned earlier, it is decentralized. It is not owned by any particular company or bank. Each Bitcoin mining software makes up a network and they work together. The theory was, and it worked, that if one network goes down, the money still flows.

2. Easy to set up. You can create a Bitcoin account in seconds, unlike the big banks.

3. It’s anonymous, at least in that your bitcoin addresses are not linked to any personal information.

4. It’s completely transparent, all transactions using Bitcoin are shown on a big chart known as the blockchain, but no one knows it’s you because there are no names associated with it.

5. Transaction fees are negligible and compared to bank fees, the infrequent and small fees charged by Bitcoin are close to zero. It’s fast, very fast. Wherever you send the money too, it usually arrives within minutes of processing.g. It is non-disputable, meaning that once you send your bitcoins, they are gone forever.

Bitcoin has significantly changed the world and the way we view money. Many people wonder if it is possible to live off Bitcoins. Some even tried to do it. Despite this, Bitcoin is now a part of our economy, a unique kind of currency, and it is not going away anytime soon.

The modern concept of cryptocurrency is becoming very popular among traders. The revolutionary concept introduced to the world by Satoshi Nakamoto as a spin-off was a hit. We understand that cryptocurrency is something hidden and currency is a medium of exchange. It is a form of currency used in a created and stored block chain. This is done using encryption techniques to control the creation and validation of the transaction currency. Bitcoin was the first cryptocurrency to emerge.

Cryptocurrency is just part of the virtual database process that works in the virtual world. It is impossible to determine the identity of a real person here. Additionally, there is no centralized authority that governs cryptocurrency trading. This currency is equivalent to solid gold, saved by people and whose value is expected to grow like yeast. The electronic system established by Satoshi is decentralized, where only miners have the right to make changes by confirming the initiated transactions. They are the only providers of human touch in the system.

Cryptocurrency counterfeiting is impossible, as the entire system is based on hard mathematical and cryptographic puzzles. Only those people who are able to solve these puzzles can make changes to the database, which is almost impossible. Once confirmed, the transaction becomes part of the database or block chain that cannot be reversed.

Cryptocurrency is nothing but digital money that is created using coding techniques. It is based on a peer-to-peer management system. Let’s now find out how you can benefit from trading in this market.

Cannot be canceled or tampered with: Although many people may deny that the transactions made are irreversible, but the best thing about cryptocurrencies is that the transaction is confirmed. The new block is added to the block chain and then the transaction cannot be faked. You become the owner of this block.

Online transactions: This not only makes it suitable for anyone anywhere in the world to transact, but also reduces the speed of transaction processing. Compared to real time, when you need a third party to buy a house, gold or take out a loan, you only need a computer and a potential buyer or seller in the case of cryptocurrency. This concept is simple, fast and full of ROI prospects.

The commission is low per transaction: Miners charge low or no commission during transactions because the network takes care of it.

Availability: The concept is so practical that all those people who have access to smartphones and laptops can access and trade the cryptocurrency market anytime, anywhere. This accessibility makes it even more profitable. As the return on investment is commendable, many countries like Kenya have introduced the M-Pesa system which allows the use of bit coins, which now allows one in three Kenyans to carry a bit coin wallet.

Cryptocurrency or cryptocurrency (cryptocurrency of the Saxons) is a virtual currency that serves to exchange goods and services through an electronic transaction system without the need to go through intermediaries. The first cryptocurrency to start trading was Bitcoin in 2009, and since then many others have appeared with other features such as Litecoin, Ripple, Dogecoin and others.

What is the advantage?

When comparing cryptocurrency to money in a ticket, the difference is that:

They are decentralized: not controlled by a bank, government or any financial institution

Anonymous: Your privacy is preserved when you make transactions

They are international: all operas with them

They’re safe: your coins belong to you and no one else, they’re stored in a private wallet with non-transferable codes known only to you

There are no intermediaries in it: transactions are carried out from person to person

Fast transactions: To send money to another country, they charge interest and often take days to confirm; with cryptocurrencies in just a few minutes.

Irreversible transactions.

Bitcoins and any other virtual currency can be exchanged for any global currency

These cannot be faked because they are encrypted using a sophisticated cryptographic system

Unlike currencies, the value of electronic currencies is subject to the oldest rule of the market: supply and demand. “It currently has a value of over $1,000, and like stocks, that value can go up or down with supply and demand.

What is the origin of Bitcoin?

Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to issue a new currency.

Its feature is that you can perform operations only within the network of networks.

Bitcoin refers to both the currency and the protocol and red P2P on which it relies.

So what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is, you cannot touch any of its forms like you can with coins or bills, but you can use them as a means of payment in the same way as these.

In some countries, you can monetize with an electronic debit card page that exchanges money for cryptocurrencies such as XAPO. In Argentina, for example, we have over 200 Bitcoin terminals.

Undoubtedly, what distinguishes Bitcoin from traditional currencies and other virtual means of payment such as Amazon Coins, Action Coins is decentralization. Bitcoin is not controlled by any government, institution or financial entity, public or private, such as the Euro, which is controlled by the Central Bank, or the dollar, which is controlled by the US Federal Reserve.

In Bitcoin, real users are controlled indirectly by their transactions through P2 P (Point to Point or Point to Point) exchanges. This structure and lack of control make it impossible for any government to manipulate its price or cause inflation by producing more. Its production and value is based on the law of supply and demand. Another interesting detail in Bitcoin is the limit of 21 million coins that will be reached in 2030.

How much is bitcoin worth?

As we mentioned, the value of Bitcoin is based on supply and demand and is calculated using an algorithm that measures the number of transactions and Bitcoin transactions in real time. Currently, the price of Bitcoin is $9,300 (as of March 11, 2018), although this value is not much less stable, and Bitcoin is considered the most volatile currency in the foreign exchange market.

In order for you to be able to make your own cryptocurrency, here are some things you should follow.

Create a blockchain

The first step to building a better cryptocurrency is building a blockchain. Blockchain technology is the foundation of every cryptocurrency you see in the world today. The blockchain contains detailed information about each cryptocurrency.

It’s a ledger that shows the history of every cryptocurrency you own. It also shows more details about who owned cryptocurrency coins before you. The best cryptocurrencies have very efficient blockchain technology.

Code

All the software you see on the Internet is made up of code. It’s the same with cryptocurrency. Fortunately, most cryptocurrency is produced using the same code. Cryptocurrencies are mostly produced using C++ code. You can outsource all the required codes from GitHub and use them to create your cryptocurrency. However, the code will be different to your specifics. If your blockchain is longer and faster, you should add apps for it. As a general rule, when creating a blockchain, programs can vary from one week to several months.

In order to make the best cryptocurrency, you need to make sure that it has the highest level of security. Hackers are everywhere and your role is to repel the hackers. One powerful tool that has been used to deter hackers is the use of private and public keys. This is because each key is created from the previous key. Through the use of cryptography, each key can be traced back to the first transaction in history.

You should also make sure that you have created a miner pool. For a stable cryptocurrency like Bitcoin? anyone can be a miner. A miner does two things.

-Creates a crypto coin

-Validates cryptocurrency.

You must form a standard way of creating and authenticating your cryptocurrency.

Access to market needs

Many cryptocurrency experts have said that the most important part is accessing the needs of the market. You should be careful and observe what other cryptocurrencies are not offering and offer them yourself. If we look at the biggest cryptocurrency in the market today, Bitcoin is.

It was created for faster transaction in the online world. Bitcoin also gained a lot of recognition because it was able to hide the identity of its users. They remained anonymous, but a legitimate transaction could be made. These are the most important parts to consider when creating a cryptocurrency.

To make a very successful cryptocurrency, you need to make sure that you know how to market your cryptocurrency properly. This means approaching merchants and asking them to accept your cryptocurrency as a payment method. Overall, these are some of the best ways to generate cryptocurrency.

Well, like almost everything else in life – if not everything – you have to buy it before you invest in it. Investing in bitcoins can be very difficult, and that is if you don’t have the step you need to take.

First you need to know that Bitcoin is a type of cryptocurrency, one of the very first digital currencies that was invented, designed and developed by Satoshi Nakamoto and was released to the public in 2009.

Since then, updates and improvements have been made by a network of highly experienced developers, and the platform has been partially funded by the Bitcoin Foundation.

Since Bitcoin has become a hot topic of interest and many people are investing in it, there is nothing wrong with acquiring digital wealth as well. It is interesting to note that back in 2012, Bitcoin firms were only able to raise $2.2 million.

Despite falling in price this year, the cryptocurrency continues to grow in both users and merchants accepting it as payment.

So how can you get in on the action? Investing in Bitcoins can be easy for the average Joe if he just buys them outright.

It has become easy to buy today, as many firms in the United States and around the world are involved in buying and selling.

For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people at a markup that is usually around 1% of the current market price.

If you want a traditional exchange, Bit Stamp may be the best option because the users you will be trading with are not just the company, but the users.

The company acts only as an intermediary. Liquidity is higher and you can almost always find another person to take the other side of your trade.

Commissions start at 0.5% and go up to 0.2% if you have traded more than $150,000 in the last 30 days. All this is already an investment vehicle in its own way, because the more BTC you buy, the more profit you will make if you decide to keep it or resell it to other traditional buyers at a higher price than the one you purchased with the help of the real company .

You can also buy bitcoins in other ways besides exchange. One of the most popular offline routes is Local Bitcoins, a website that connects you with potential buyers and sellers. When buying coins, they are locked with the seller in escrow, from where they can be issued only to buyers.

But buying bitcoins offline should be done with some extra precautions which are always common like meeting a stranger. Meet during the day in a public place and if possible bring a friend with you.

Bitcoin is the most popular thing on the internet right now. Investors and venture capital firms are betting that it will stick around. There are many ways for the average Joe to invest and buy Bitcoins.

In the US, the most popular ways are Coin Base, Bit Stamp, and Local Bitcoins. Each has its own advantages and disadvantages, so do your research to find the best fit for you.

Cryptocurrency mining is an endless game in this digital world. Bitcoin, the first decentralized currency, introduced in early 2000. Cryptocurrency mining is a complex process of verifying transactions and adding them to a public ledger (blockchain). This ledger of past transactions is called a blockchain because it is a chain of blocks. Blockchain serves to confirm transactions with the rest of the network. The blockchain is also responsible for issuing new bitcoins. Each of the many cryptocurrencies present depends on the basic idea of ​​the blockchain.

Mining process

Cryptocurrency was supposed to be decentralized, secure and immutable. So every transaction is encrypted. Once this encrypted transaction occurs, it is added to what many call a “block” until a set number of transactions have been recorded. This block is then added to a chain – the blockchain – which is publicly available. While mining Bitcoin, Dash, Litecoin, Zcash, Ethereum and other cryptocurrencies, the miner must assemble recent transactions into blocks and solve a computationally complex puzzle. There are several online Bitcoin mining sites. This has become a very popular way of earning.

Cryptocurrency is cryptographic, which means it uses special encryption that allows you to control the generation of coins and confirm the transaction. The block is pretty useless in its current available form. However, after applying the algorithm to a specific block. If there is a match, the miner gets a couple of bitcoins. To get bitcoins by mining, Miner must be technical. Bitcoin mining for profit is very competitive. The price of Bitcoin makes it difficult to make a monetary profit without speculating on the price. Pay is based on how much their equipment contributes to solving that puzzle. Miners verify transactions, ensure they are not false, and maintain the infrastructure.

Best coins to mine

Bitcoins are not a decent solution for novice miners trying out on a small scale. The current upfront speculation and upkeep costs, and the pure scientific problem of the procedure, simply do not make it productive for buyer-level equipment. Currently, Bitcoin mining is sort of reserved for large-scale activity. Again, Litecoin, Dogecoin, and Feathercoin are three digital forms of money based on Scrypt that are the best money saving advantage for students. At Litecoin’s current valuation, a person can earn anywhere from 50 pence to $10 every day using client-level mining hardware. Dogecoin and Feathercoin will benefit slightly less with similar mining hardware, but are becoming more popular every day. Pircoins can also be a reasonably fair profit for your enterprise of time and vitality.

As more people join the cryptocurrency boom, your solution may become more complex to mine as more expensive equipment is required to find the coins. You will be forced to either contribute vigorously in the event that you need to continue mining this coin, or you will need to withdraw your profits and switch to a less demanding cryptocurrency. Understanding the three main Bitcoin mining strategies is probably the place to start; this article is about script coin mining. Likewise, make sure you are in a country where Bitcoin and Bitcoin mining are legal.

The purpose of mining

How about we focus on cryptocurrency mining. The whole focus of mining is to achieve three things:

1. Give accounting administrations to the coin network. Mining is essentially every minute of daily accounting on a PC called “transaction verification”.

2. Get a small bookkeeping reward by accepting coin shares every couple of days.

3. Reduce your personal expenses, including electricity and equipment.

Some basic terms

Free private database called coin wallet. It’s a password-protected container that stores your earnings and keeps extensive transaction records. Free mining software like this one from AMD which usually consists of cgminer and stratum. Sign up to a web mining pool, which is a community of miners who pool their PCs to increase profitability and stable wages. A listing on an online exchange where you can exchange your virtual coins for real money and vice versa. A reliable constant web association, ideally 2 megabits every second or higher speed. Place the equipment in your basement or other cool, air-conditioned space.

A desktop or custom-built PC designed for mining. Indeed, you can use your current PC to run it, but you won’t be able to use the PC while the digger is running. A separate dedicated PC is ideal. Tip: Do not use a laptop, game console or portable devices for mining. These devices are simply not successful enough to earn a living. An ATI graphics processing unit (GPU) or a specialized processing unit called an ASIC mining chip. The cost will range from $90 upfront for each GPU or ASIC chip to $3,000 for a new one. The GPU or ASIC will be the workhorse that will handle the accounting and mining operations.

A home fan to blow cool air on your mining computer. Mining generates a significant amount of heat, and cooling your hardware is critical to your prosperity. Personal interest. You definitely need a strong appetite for reading and constant learning as there are constant innovations and new methods to modernize coin mining. The best mining miners spend many hours consistently looking at the most ideal ways to adjust and improve their coin mining performance.

Cryptocurrency Mining Profitability Every time a mathematical problem is considered, a constant number of Bitcoins are created. The number of bitcoins generated per block starts at 50 and halves every 210,000 blocks (approximately four years). The current number of bitcoins received per block is 12.5. The last halving happened in July 2016, and the next one will happen in 2020. Profitability can be estimated using various online mining calculators. The development of digital currency standards, such as Bitcoin, Ethereum and Bitcoin Cash, has caused huge businesses for companies and it is necessary for the market to develop significantly in the near future.

Cryptocurrency mining is a computationally intensive process that requires a network of multiple PCs to verify a transaction record known as a blockchain. Miners are offered a share of transaction fees and a higher probability of finding another block due to high processing power. These support transactions help increase the security of the network customers and ensure honesty, which is believed to be a prominent factor influencing the development of the global cryptocurrency mining market.

Currently the world’s number one cryptocurrency, Bitcoin has been making major headlines and major fluctuations over the past 6 months. Almost everyone has heard of them, and almost everyone has an opinion. Some cannot fathom the idea that a currency of any value can be created out of nothing, while some love the idea that something that is not controlled by a government can be traded as a valuable entity in its own right.

Where do you sit on the question “Should I buy Bitcoin?” the fence probably ultimately boils down to one question: can i make money with bitcoins?

Is it possible to make money with bitcoins?

In the last 6 months alone, we have seen the price go from $20/coin in February to $260/coin in April, drop back to $60/coin in March, and rise again to $130/coin in May. The price has now settled around $100 per Bitcoin, but it’s anyone’s guess what will happen next.

Bitcoin’s future ultimately depends on two main variables: its acceptance as a currency by the general public and the absence of prohibitive government interference.

The Bitcoin community is growing rapidly, interest in the cryptocurrency has exploded online, and new services are increasingly accepting Bitcoin payments. Blogging giant WordPress is accepting bitcoin payments, and African mobile app provider Kipochi has developed a bitcoin wallet that will allow bitcoin payments on mobile phones in developing countries.

We have already seen people make millions from the currency. We’re seeing more and more people experiment with living off Bitcoin for months at a time while recording the experience for documentary viewing.

You can buy takeout in Boston, coffee in London, and even a few cars on Craigslist with Bitcoin. Bitcoin searches skyrocketed in 2013 with the April rally and subsequent fall in the price of Bitcoin. Last week, the first major acquisition of a Bitcoin company was made for SatoshiDice, an online gambling site, for 126,315 BTC (about $11.47 million) by an unknown buyer.

This rapid growth in awareness and uptake looks set to continue as confidence in the currency remains strong. Which leads to the second addiction. State regulation.

Although Bitcoin is specifically designed to operate independently of government control, governments will inevitably influence it in some way. This should be so for two reasons.

First, to achieve a high level of adoption, Bitcoin needs to be accessible to a large number of people, which means going beyond hidden transactions to common everyday transactions for individuals and businesses. Second, these bitcoin transactions can become part of people’s taxable estates, which can be tracked and declared and regulated along with any other type of wealth.

The European Union has already stated that bitcoins are not classified as fiat currency or money, and as such will not be regulated per se. In the US, the 50-state system and the number of bureaucratic bodies involved have inevitably complicated decision-making, and consensus has yet to be reached. Bitcoin is not considered money as such, but it is considered to act like money.

The booming Bitcoin market in the US has a more uncertain future at the moment, and any final legislation in the US could have either a very positive or a very negative impact on the future of Bitcoin.

So, should you buy Bitcoin?

The answer largely depends on how risk averse you are. Of course, Bitcoin will not be a smooth investment, but the potential of this currency is huge.