Bitcoin Prices Remain Volatile, Will it Become a Mainstream Currency?


Two weeks after Bitcoin prices hit the all time high of $230 on April 9th, the price of the virtual currency remain wildly volatile.   In the 18 days since the peak, the daily closing price had movement of 12% on average in either direction, with the high of 36% gain on April 17th, from $68.36 to $93.07.  The price has been driven by high volume, with average trade volume of 208,236 BTC over the course of the past 18 days, compare to 63,205 BTC over a 18 day period from two months ago.
bitcoin trade volume

Bitcoin became headline news about two weeks ago when the surge in price took the world by storm, if Bitcoin was not a mainstream currency before then, it has certain hit the radar of the casual investors by now.

Is Bitcoin a Legitimate Currency?

Lets put it this way, the banks worldwide are cautiously following the development of this virtual currency.  Recently, two Bitcoin dealers in Canada had their bank accounts frozen by Royal Bank of Canada and TD Bank.  The banks are skeptical at this point since there are unanswered regulations involving interstate and international transactions involved.  Before the federal governments officially lay out plans for this currency, banks will take caution on this matter.   A good comp may be the Euro currency when it first linked all the neighboring countries in Europe.  Think about how long it took the European Union to standardize the Euro currency.  If international commerce will be operating at an large scale using this currency, the federal governments need to appropriately decipher the potential risks and mitigate fraud.

Bitcoin Risks

The biggest risk that come to mind of course is money laundering.  It is mind-blowing that an investor does not need to reveal their identity, investors are only required to reveal their identity if they plan on depositing over $50,000.  The only personal data that collects during registration are the following:

  • Username
  • Password
  • Email
  • Preferred Currency Exchange

Of these data, only email can be considered personal information, which is still just a bona fide alias for people to hide behind.

How to Spend Bitcoin

For casual investors that can afford to invest their disposable savings, Bitcoin can be a great alternative investment option.  Besides the great return on investment, Bitcoin has slowly becoming a mainstream currency accepted in retail stores.

From retail stores selling guitars, to booking a Hawaii vacation, some retail stores have found that it may give them an edge from their competitors by accepting the virtual currency.  And guess what, you can buy a 900 square feet home sitting on 2.97 acre land for $405,000 worth of Bitcoins.

4 Replies to “Bitcoin Prices Remain Volatile, Will it Become a Mainstream Currency?”

  1. …and the greatest consideration of all?

    The fact that so-called ‘money laundering’ isn’t even a crime-ie, there is no credible victim. Money laundering, like smuggling, recreational drug use and a host of other activities is a political offense enacted for the sole purpose of controlling the citizenry.

  2. When I registered for Mt Gox in February 2013, I had to supply quite a lot of documentation e.g. driver licence, proof of address (and several other identification proofs that I cannot remember offhand).

    Regarding money laundering – some considerations:

    1. If one is concerned about Bitcoin, then one needs to also be just as concerned about cash which is even more anonymous.

    2. Money laundering has been and is going on right now in a huge way in various countries – Switzerland, Cyprus, Iceland (used to be), Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore. Huge amounts of money goes through the banks in these countries – a lot of it is from drugs, arms trading, human trafficking – you name it. Russian organised crime virtually supported the whole Cyprus economy. Yet the ‘Establishment’ cannot see past it’s hypocritical nose when it expresses concern at Bitcoin. Could it possibly be that the international banking fraternity is up to its neck in money laundering and does not want any competition?

  3. I think you are correct. the $230 price as of the end of that day. $266 was the intraday price I believe.

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