How on earth can anyone afford to buy Bitcoin right now?
Well, I can’t at least – the price of one has jumped to around £500 after the Senate hearing on the cryptocurrency.
Its value was always going to jump or crash, such is the fluctuating nature of the currency at the moment, with every major news story about it affecting people’s perception of the digital cash.
It dropped 20% after the arrest of Ross Ulbricht, the alleged mastermind behind Silk Road, triggered the closure of the online drugs marketplace, which used Bitcoin for transactions.
But after the Senate heard the Department of Justice and the FBI admit it could be used for legitimate financial services, the price soared.
While fans of Bitcoin will always hold up the fact that it is not a fiat currency as evidence of its supposed stability, it has its own weaknesses, despite being an exciting alternative to traditional mediums of exchange.
The major one is exactly what’s happening to it at the moment – its value rises and falls like shares on the stock exchange, with each new announcement made about it becoming the catalyst of a new climb or dip.
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With the fierce debate surrounding Bitcoin at the moment, not many would consider it a wise investment.
