The alternative, virtual, and unregulated currency Bitcoin experienced quite the bonanza over the last few weeks.
The price skyrocketed to over $200 per coin, then plummeted 50%, then rebounded a bit. The fledgling new online currency has made millionaires from early adopters but is still struggling to go mainstream.
I honestly don’t know what to think of Bitcoin.
There are only a certain number of coins that can ever exist, you have to run complex equations on a computer to “mine” a coin (or purchase them from an exchange), and the coins are stored on your computer. However, real people are using them for real transactions instead of US dollars.
As great as it would be to buy a bunch of coins at $3 per coin in the early stages and watch it skyrocket to $200… I can’t imagine a sustainable currency fluctuating that much. Merchants can accept Bitcoins for payment, but how can you calculate how many coins to charge if the price is constantly changing? That $200 transaction for one coin just became a $120 transaction when the price plummets.