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After Bitcoin exploded onto the financial world last year, it immediately became enveloped in controversy, with just as many predicting its imminent doom as were declaring it a revolutionary form of money.
The Bitcoin news in 2014 will have less drama but will be far more important to the fate of the digital currency.
Last year Bitcoin prices endured not one but two crashes, in April and again in December, in gaining a reputation as an uncommonly volatile investment.
And Bitcoin shed some guilt by association when the U.S. government in October shut down the underground web site Silk Road, which allowed people to use Bitcoin to buy and sell illegal drugs.
While its growing pains are far from over, 2014's Bitcoin news will be mostly about the world coming to terms with the cryptocurrency as it gains wider acceptance.
Bitcoin News 2014: Five Predictions
- Bitcoin News Prediction No. 1: Merchant Acceptance Reaches Critical Mass
We saw several prominent merchants announce in 2013 that they would accept Bitcoin as payment: online retailer Overstock.com Inc. (Nasdaq: OSTK), game company Zynga Inc. (Nasdaq: ZNGA), dating website OKCupid, and blogging platform WordPress. In 2014, that trickle will become a flood as merchants realize the benefits of Bitcoin, such as more affluent techie customers as well as lower transaction fees compared to credit cards. Once the trend starts to accelerate, no one will want to be left behind.
- Bitcoin News Prediction No. 2: Third Parties Make It Brain-Dead Simple to Use
One of the primary issues holding back more rapid adoption of the digital currency is that anyone who uses Bitcoin needs to be technically savvy. But such a problem invites innovation, and we're sure to see a lot of companies in 2014 coming up with ways to make Bitcoin easy and intuitive. We've already seen such companies as Coinbase and Robocoin (which has built a Bitcoin ATM) take the first steps in this direction.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.
5 predictions? I only see 2. Something must have gone wrong…
I think you did something wrong. I was able to read all 5.
I am just starting to gain knowledge about Bitcoin. Looking foreword to receiving your Bitcoin guide, thanks, Dr. Frank.
Here's a more logical prediction:
Major countries will not stand back and let Bitcoin become the new world currency. They have no control over Bitcoin, so it cannot and will not be allowed to take over.
China has already banned the use of Bitcoin. Others will ban it for the same reasons China did it.
Bitcoin is a mania that has a lot of similarities to the South Seas bubble and Tulip-mania. Those both ended very badly for people who 'believed' in them.
Bitcoin isn't "taking over" anything. It was not set up to be a global reserve currency, or even a replacement to fiat currencies. It is mainly a new and better system of payment built on top of the Internet. Most countries will realize they're better off simply regulating Bitcoin rather than trying to outlaw it (which would prove difficult to enforce in any case.) And while China has imposed restrictions, the government there has not banned it outright; people are still trading it on the Chinese Bitcoin exchanges.
How are Bitcoins purchased?
Every time I follow a different link, I am saddened by the fact that I have to purchase a newsletter or subscription to get the answer.
wheres the other 3?