This chart shows why Bitcoin isn’t a currency just yet

Take a look at the chart below. It shows the roller-coaster ride that Bitcoin, the digital currency that everyone is talking about, has had in the past six months.

bitcoin

 

Chart source: Bitcoincharts.com

From a goofy high of $,1000-plus per bitcoin late last year, the value of the digital currency has tumbled to $500 and thereabouts now. That’s a more than 50% drop in the space of 26 weeks. If you used a currency like that, you’d be bankrupt before you know it.

Currencies need relatively stable values to be treated as such. No wonder an increasing band of regulators and monetary authorities are viewing it with heightened wariness.

So, no, despite all the noise and hooplah, Bitcoin still doesn’t have the cred to become a full-fledged currency. For now, it’s still best classified as an investment.

[Image Credit]

 

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