I continue to watch the bargains and banes of Bitcoin with fascination and amusement. On the bargain side—
1—You use a virtual electronic currency that limits government involvement in personal transactions.
2—You use a currency system independent of conventional currency systems.
3—You mine for additional Bitcoin via complex computer algorithms to solve mathematical cyber-riddles.
4—You are seen as technologically progressive.
5—You are part of an emerging “new economy” trend.
On the bane side—
1—Bitcoin is not guaranteed or secured by any government.
2—Questions remain concerning how governments might attempt to regulate Bitcoin. This could involve the SEC, the IRS, the FTC, and other national or international regulatory bodies.
3—The mathematical cyber-riddles, by design, become increasingly difficult to solve. This means you will expend increasingly more computer power to mine diminishing quantities of Bitcoin. The longer you’re in it, the harder it becomes. Some experts have postulated that eventually the cost for mining future Bitcoin will exceed the Bitcoin value itself.
4—Bitcoin values will sometimes fluctuate wildly.
5—You have no guarantee that any person or company will accept Bitcoin as a medium of exchange. It is purely voluntary.
6—Bitcoin is a high-profile target of hackers and scammers.
As I said, this is why I shall continue to watch the bargains and banes of Bitcoin with fascination and amusement.