Ah, the BitCoin. One of the most polarizing topics of discourse since Mac vs. PC, Amazon vs. eBay, or iPad vs. Kindle. Like any new, fairly controversial ecommerce trend, you’ll hear both sides of the fence. There are those who strongly oppose the BitCoin, citing glaring holes in calculating both the floor and ceiling of the currency (if gold loses value, its jewelry – if BitCoin loses value, it’s what? Ghost currency?). Then, you’ll see support from vehement backers of the BitCoin, like Fred Ehrsam, co-founder of the software Coinbase that lets you buy and trade using BitCoin (not surprising) and Shopify, who just integrated with Coinbase (a little surprising). On both sides of the debate are terribly intelligent, exceptionally devout experts of ecommerce, who provide arguments backed by education and years of experience. Spend a moment listening to the speeches from either camp, and you can almost get pulled to the other side of the fence. As persuasive as a passionate dialogue may be, there is one thing it cannot stand against, and that’s numbers. Unfortunately for the BitCoin and it’s zealous backers, numbers don’t lie.
BitCoin’s price has been dropping drastically over the past year. The BitCoin’s value in USD seemed to peak last December, when it was valued at $1,151. Now nearly 8 months later, BitCoin is valued at roughly $458. That’s about half of what it was in the matter of only a few months. Yes, it may bounce back. It did drop a gut-wrenching $502 in one minute back in February, and made a quick jump back up to $600 from the career ending $102. But since that one anomaly, the BitCoin has been slowly treading downhill. On August 18th, BitCoin’s price droped $60 in one day. The ripple effect extended beyond the west – China’s markets were down nearly 6% after BitCoin lost it’s footing with the USD.
Anyone who follows the stocks can tell you that it’s a beast of its own. You can predict and plan meticulously, but some things can happen (and often do) seemingly without reason, or at least without your anticipation. So though BitCoin seems to be sliding downhill, it may bounce back. For the sake of sellers who buy and trade with BitCoin, we hope it does. Maybe I’m shortsighted, or even a little unadventurous, but riding the BitCoin train is a risk I’m not sure I want to take.