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.
Instead of worrying about alternative currencies to get rich, here are some more traditional methods:
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Ready For Zero Blog | 10 Mental Barriers to Paying Off Debt: The Need to Maintain Appearances
Credit Karma Blog | Infographic: The Lifecycle of Debt and Credit Scores
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Wealthy Turtle | How to Avoid Feeling Isolated and Lonely When Working from Home
Wise Bread | Frugal Factors: What Traits Do Most Savers Share?
JoeTaxpayer | The 15% solution
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I’ve seen all the Bitcoin hype and I’ve tried to understand what it’s all about. I just don’t get it.
Thanks for the mention!
Glen Craig says
I know! I read the Wikipedia entry on it and I thought I was reading a William Gibson novel.
The security issues that an anonymous, untraceable, and unregulated currency poses seems to be the biggest factor in my mind. Great links! Hope you had a great weekend.
Brent Pittman says
Hey thanks for the link. I thought Bitcoin went out of business already.