Or Is The World’s First Digital Currency A Risky Investment? With the first Bitcoin ATM launching in Vancouver on Tuesday, some may question the validity of the digital currency and its efficacy in the modern world. Is this a venture doomed to fail, losing investors thousands if reddit bitcoin atm millions of dollars in the process?
The other way to obtain BTCs is through the peer-to-peer markets in which people buy and sell the currency at fluctuating prices that respond to supply and demand. Bitcoins can be spent online or at certain retailers, and has a vendor list that grows daily. It’s not as simple as it sounds. Bitcoin is highly volatile in nature as it responds to the market. Since its inception, Bitcoin has gone through several major crashes over the last four years.
Gifting BTCs put an influx of currency that wasn’t on the market and crashed it. Investors who had a large share of BTCs lost a great deal in this crash. It’s the Stock Market crash of 1929 on a much smaller scale. The rapid devaluation of BTCs is tantamount to the rapid stock sale off on Black Tuesday.
But unlike the stock market crash, the digital nature of Bitcoin allowed the currency to stabilize in the matter of a week. But that’s not the whole story, not anymore. Despite the volatility people still adhere to the currency, more companies are jumping on the Bitcoin bandwagon. Manhattan, started accepting the currency just before the crash on April 10. Six months later, the company still advertises that they accept the currency.
The rapid inflation that Sherem may benefit from is troubling. He simply forgot about it for four years. Koch purchased 5,000 BTCs in 2009 at half a cent each. If he were to do that today his purchase would cost 1. Bitcoins are probably not a great investment.