It has been a very wild ride for the Bitcoin price in the last couple of days. The US dollar as well as the Japanese Yen have lost some of their value because of political instability in the Middle East.
I have watched the world financial markets and know that the Japanese and US dollar are very closely connected with the dollar. Therefore if they fall in the prices for the dollar to go up and vice versa. Thus, what happens in one country affects the other.
Because of this political turmoil, traders know that they have to jump on the Bitcoin bandwagon. The truth is that many individuals feel it is a currency, but that is not true as there is no central authority controlling it.
While there are many speculators looking to take advantage of this economic situation, I believe that the true believers will see the benefits and then they will hold onto their Bitcoins for the long term. That is not to say that you cannot make money on your Bitcoin investments; it just means that it is very difficult to predict what the price of Bitcoin will be in the future.
On the other hand, stocks and other different asset classes have a much better track record. In fact, you can even buy the American dollar and it will only lose money when you buy it and sell it at the wrong time. It works out because you have a lot of support at that point in time.
Because of the different conditions in the world today, the value of the US dollar has declined in comparison to the US Dollar and the Euro, thus making these other currencies less valuable. This makes it a little bit easier for buyers to move in and out of the currency they feel is most suitable for them. This is just like buying shares in Google, you want to buy when it is low and sell when it is high.
The problem with having more than one currency is that if one goes down then the others are affected and it is difficult to trade through them all. This has led to more of an interest in Bitcoin as a great hedge against the inevitable decline of fiat currencies.
With the price of Bitcoin increasing, it is becoming a good time to get involved in this new venture. You should first learn about it, if you are not comfortable with that or it is too complicated, then I would recommend that you find someone who is and allow them to teach you how to use it. At the same time, you can get yourself an account on one of the larger Bitcoin exchanges and start trading.
