Could this be the best time to invest in Bitcoin..?

Bitcoin has seen a huge increase in value from $2 in June of 2011 to a high of $1237.955 on the 4th December 2013 it is the fastest growing currency in the world and back in November it grew 107% in 1 week. However the recent crash of its largest exchange Mt Gox has seen a slump in value from circa $900 dollars to currently trading at around $550 dollars per coin. With that said this could be the “return to the mean” for Bitcoin?

 HMRC set to scrap Bitcoin tax… investing now could a great move.

The virtual currency that has everyone wondering “is this the work of Genius or a Joke!” and although last week’s announcements from Mt Gox sent the Bitcoin values jumping momentarily the currency is still trading higher than it was in mid-December 2013. It has not seen the cliff falls that many predicted. The currency dropped and gained by $200 dollars in 24 hours, quickly stabablising back to the “mean” within 24 hours… not a bad day if you were in and out at the right points.

With strong indications the UK HMRC is on the brink of announcing it is to scrap taxation plans for Bitcoin trades, this effectively answers the question of HMRC recognising Bitcoin as a genuine currency. The UK is welcoming Bitcoin investors with open arms, this could see the currency pick-up pace again in the coming weeks as it bolsters the credibility of the currency further. If the outcome is positive this could well be a good time to invest in Bitcoin. The currency has proven stability through adversity and the UK’s HMRC ruling will only add more confidence to the currency for investors.

Is it here to stay and a safe bet?

A question asked by many and at the moment Bitcoin looks to be holding its own. With companies like the Virgin group now accepting Bitcoin for Virgin Galactic bookings and many other establishments and high-street brands beginning to adopt the payment system its acceptance in consumer markets is growing rapidly. It has a huge investment backing and some big investment names endorsing it.

 Is it here to stay and a safe bet!

In truth accepting Bitcoin as a payment is relatively easy to do and the transaction fees are in many cases free or lower than 0.5%, so as a business “why wouldn’t you accept it?” It is safer than PayPal or Credit Card transactions as nothing is reversible, so for businesses and individuals selling goods, Bitcoin has many very attractive qualities. UK businesses already accepting Bitcoin can be found here.

Understanding  Bitcoin.

This is the hardest part of Bitcoin, people cannot grasp the concept of a “virtual currency”. In truth, as a thought process there is little to consider from a normal currency. It is stored in the equivalent to banks and wallets known as “exchanges” and “digital wallets” you can download it to your machine and print the crypto key and lock it in your safe if you wish (just like money) and in the same way bank robbers and burglars break in to banks and homes “hackers” can break into these virtual places and steal your money. As a rule you need to treat it for what it is “real money” and never leave it lying around where someone can pick it up! See our Bitcoin guide to understanding here.

The Brilliance of Bitcoin…

It’s not controlled by traditional Banks, it is entirely decentralized currency and transactions occur directly from person without going through a bank, your account cannot be frozen and they can be used anywhere in the world, there is no charges on your money and your money is secure… Imagine if you lived in Greece or Cyprus last year where the banking systems collapsed to the point that people lost entire life savings because their Bank or government decided it need the money. Bitcoin would have been a much safer investment in the last 6 years for many people than traditional banks.

Bitcoin ia a “Game Changer”.

Bitcoin is changing finance and it is a “game changer” for the world economy in the same way the Internet changed publishing, Google changed the Internet, Facebook changed social interaction and the MP3 changed the music industry forever. Virtual currencies are here to stay, whether it be Bitcoin or any of the other emerging cypher currencies ultimately this will change banking for good as it evolves and in 3-5 years who knows what could happen to the “traditional” banking sector, your IT manager might well replace your Financial Director….?! Although the future looks bright for Bitcoin be warned history is littered with currencies that failed and are no longer used so never gamble what you cannot afford to lose!