Bank of England Look at Launching a Digital Currency
I did have to smile when I heard that the Bank of England has been seriously looking into the possibility and feasibility of launching its own digital currency! For the team in charge have been laying into Bitcoin and other digital currencies for ages, and saying how they shouldn’t be trusted and how it is a bubble waiting to burst and even worse!
It was probably the fact that digital currencies are so very popular with millions of people the world over, but it is a highly unregulated financial industry and one that is not taxable or accountable to anyone or any government and completely anonymous that has forced the hand somewhat of the Bank of England.
Whilst the powers that be at the Bank of England have stated that they are looking into launching a digital currency there are no guarantees they will, for they are of course still weighing up the pros and cons of doing so.
However, it does appear to be the fact that the unique way in which digital currencies work and operate there could be some gigantic savings any country would make by launching one for themselves, and there would be a way for any government and national bank to know who is using it, how much people are making from it and so on!
There would be no need for bank branches, no need for the enormous costs of printing, distributing and even storing fiat currencies and cost savings is of course something any bank is very eager to do.
Many Digital Currencies are taking Bitcoin on
One thing that will not have escaped your notice is that there are a huge number of new digital currencies going live all of the time, and as such there are plenty of digital currencies aiming to take steal the crown off Bitcoin to become the number one used and most popular digital currency.
However, many of those digital currencies are going to fall by the wayside, that I am 100% certain of, but it does have to be said that some of them are offering additional features that Bitcoin doesn’t.
In fact, I have started to see some digital currencies that are based on just one type of industry or business and market sector, and it is possibly going to be those that will be worth investigating, if you are looking for some fairly new digital currency start ups to use.
I wouldn’t pin my hopes on any national bank such as the Bank of England launching their own digital currency, but if they did it is not going to attract the type of people who use digital currencies thanks to them being anonymous ways of moving money around the web and to pay for all manner of goods and services.
It is certainly going to be an interesting year watching how the current crop of digital currencies perform and also seeing how some of the new start ups do perform once they do go live.
Is the Time Right for You to Invest in Bitcoin?
If you still have joined in the Bitcoin revolution but you are still trying to work out whether it is something you are going to be interested in doing, then spend some time looking at the risks attached to doing so, for not everybody does make money when investing in Bitcoin.
The volatility that Bitcoin is experiencing is not going to stop anytime soon, but with its value bouncing up and down all of the time if you do fancy dipping your toes into the water and buying any quantity then wait until its value dips, which it is likely to do regularly.
The bounce back in regards to the value of Bitcoin is what you should then be looking for if you do want to make a profit out of your investment, and there is an art to buying low and selling high, but it is an art form that not many people can or ever master!
I wouldn’t advise investing in Bitcoin however if you are in any way shape or form averse to risks, for in regards to risky but potentially very profitable investments currently Bitcoin is right up there with the best of them!
Only ever invest money that you can afford if you do fancy getting involved in Bitcoin for there are never any guarantees that you will lock in a profit, but there is always the chance that you will!