Since early 2009, Bitcoin has been a hot topic of debate throughout the business world. While some see it as a profitable investment opportunity, others look at it as a foray into financial no-mans-land. But despite the virtual currency’s relatively undefined and unstable value, it’s surprisingly still around, and possibly even gaining some traction in some industries.
Although there have been a number of articles online addressing the uncertainty and inherent risks of Bitcoin trading, there are also advocates for the online currency, especially when it comes to foreign exchange.
Foreign exchange traders have become a major proponent of Bitcoin because it allows them to use a globally standardized currency, one that is valued around $132, which effectively makes it the world’s highest valued currency. The efficiency and high value of the digital currency has made it extremely popular among forex traders, and seems to be creating a new online economy.
However, while Bitcoin appears to be reshaping international trade, it does come with some substantial risk, most notably it’s fluctuating worth. As reported in one Bloomberg.com article, the virtual currency has been known to fluctuate in value over $150 in the same day.
“Yesterday, when I started writing this post, the value of a Bitcoin spiked up as high as $266,” the author stated. “Then it fell as low as $105…If you want to know what you can buy tomorrow for the Bitcoins you have stored today, forget about it. Your two Bitcoins might be enough to buy a cheap laptop today, and maybe a powerful computer next week…or maybe just a box of cookies.”
With the constant uncertainty that surrounds Bitcoin, it’s clear that knowledge is power. The virtual currency definitely possesses qualities that are advantageous for forex traders, and could also potentially pay off as a long-term investment. To help Bitcoin traders make profitable business decisions and successful transactions, companies like ForexMinute are creating guides for Bitcoin traders. With tools and tips from the experts in the industry, Bitcoin traders will be able to mine and release Bitcoins at the best possible times, helping increase their value and eliminate loss.
Ultimately, Bitcoin trading is a financial roll of the dice—while they may prove to be a good means of facilitating foreign exchange, they could also end up costing you money. Are you willing to take the risk?