Bitcoin is creating quite the stir moving up and down often so fast that you cannot even lock in a price.
With all of the up and down moments it makes it very difficult to actually use this as money.
This creates a real problem in many ways and so far the price has continued to go up and down from 44,000 to 58,000 all in one day.
It creates so many issues for those that want to buy but just do not know how it all works or even if it is something that is safe to buy.
Larger institutions are buying into bitcoin but what does that mean to the average person who might want to buy Crypto Currency?
Right now it is hard to say because some people say that BTC is going to go up to 100,000 this year.
Still others are saying that it is going to go way down.
Logically it is more than likely that BTC is going to go back down before it goes above 60,000 and stays there.
It seems to move up and down about 2000 dollars at a time.
One day its 47,000 to 49,000 the next day it could be 44,000
So, a lot of people are buying and selling but with a percentage added onto the average price.
Just today one company was quoting 51,090 and the spot price was 48,900 So if you wanted to buy from that company you would have to overpay by a lot.
Also another thing that is a problem is the fee for buying and selling.
Some places charge up to 20 percent while ATM machines often charge 30 to 40 percent.
This is not a good way to do business and frankly it scares people off.
So what is it about this Digital Currency that is so radical that it causes the price to be so unstable?
Well, the biggest problem is that exchanges are using a trading software that is also used to trade stocks.
Digital Currency is not stocks and it should not be traded in the same way as stocks because companies issue stocks, Companies have employees, they have products.
With Digital Currency you have almost no way to tell how it will perform or when it might go up or down.
So it makes no sense that it is being traded in the same way as stocks.
Yet, that is what we are seeing right now.
The average opinion is that Bitcoin is going to continue to get more valuable but at what price?
When you cannot count on what the actual value is going to be from one day to the next it is difficult to sell something when you know what your product is worth.
Until Crypto Currency becomes more stable it is not going to gain a long term following of investors and regular people.
But beyond all of that it needs to stop being traded like a stock.
Exchanges need to change the way that Quotes are made.
When an exchange has a built in padding that artificially changes the value of the Digital Currency it creates an unfair playing field.
It is that real problem that will create more crypto lawsuits.
These exchanges must level the playing field or they are going to wake up one day to the SEC camping out on their doorsteps.
There are a lot of dirty things going on right now and some people are saying that it is used for illegal things.
Which is sort of foolish when you think about it because far more dirty things are done with traditional paper currency than digital currency.
The bad guys still do more dirty deeds with real cash then digital.
So, the idea that dirty deeds are what digital currency is used for is fantasy land.
Still there are plenty of methods that trading could be cleaned up and of course Taxes are going to play a big role going forward.
Like Taxes are not already levied upon everything.
But that is a different story.
For now be safe and be smart, do the research before you jump into the digital currency revolution.