It is the possibility that Bitcoin users alternately seek and dread: when the digital coins become embraced by regulatory bodies and in some way incorporated into the mainstream of finance. In some ways, that has already happened, with many major businesses allowing payment by Bitcoin for their goods and services. But Bitcoin is still very much on the outside when it comes to legal legitimization from things like governments and regulatory bodies. It kind of operates in the same nether region these days as marijuana in the United States, where no one is too sure if there is going to be an issue with possessing it and even using it.
Of course, that kind of uncertainty is the thing that makes investors hesitate when it comes to plunging their hard-earned money into this new technology. What they should try to do is imagine a future where Bitcoin operates in harmony with cash, credit cards, checks and other forms of payment within a financial system. Investors trying to visualize that may realize that there is a solid future for the digital coins and their value, in which case investing in them with the help of a trading robot such as Bitcoin Loophole can be very profitable. Here are some of the ways Bitcoin may continue to exist while being regulated and what that might do for its overall value.
- A Short-Term Drop
The concern many investors have when dealing with Bitcoin is what might happen if it ends up on a trading exchange along with other assets. Right now, pretty much all the average investor can do with Bitcoin is buy and sell it. But at some point, investors may have the ability to take a so-called short position on it, which means that they are predicting that it will fail. If that occurs, that very possibility can have a downward effect on the price of the coins.
- Opening It Up
On the other hand, the fact that Bitcoin will be available for all the normal trades that are applicable to assets like stocks may give investors more reason to check it out and discover its worth. Suddenly the idea that Bitcoin options and futures can be part of an investing scenario could open the doors to institutional investors. That would bring in a lot more money, with the possibility of Bitcoin funds also entering into the picture and offering more value.
- Relaxing the Worried Investors
There are most likely a great many investors lurking about right now who are intrigued by Bitcoin’s capabilities but scared to death by the chance that it will all add up to nothing if regulatory bodies crack down on it. But if the opposite result takes place, one where the coins are embraced by governments and lawmakers, all those tentative investors could well come pouring into the fold.
Bitcoin’s future is very much up in the air. But the idea that regulation would spell doom doesn’t quite hold water when held up to closer inspection.