Bitcoin Surges To 3-Month Highs After EU Tax Ruling | Zero Hedge
Bitcoin has recovered all the losses from the volatility surrounding China’s currency devaluation and Black Monday equity weakness as implicit capital controls drive the Chinese into alternative currencies (as we warned would happen). However, the last few days have seen the cryptocurrency surge to $280 – the highest in 12 weeks – as The EU’s top court ruled bitcoin and other virtual currencies can be exchanged tax-free, putting them on a more equal footing with traditional cash.
Clearly investing in Bitcoin is not for the faint of heart. After the meteoric rise of bitcoin due to the uncertainty surrounding Greece and Europe, we have seen a decline to basically $200 before bouncing back strongly to roughly $280 at the time of writing:
Sure, for those who have been around 180 to 300s is not the low 100s to over 1000 USD rise we had before, but after touching bottom around 180 it was a pretty good run.
The point here being, Bitcoin is maturing and governments are regulating it thus far in a way that allows it to compete with Fiat. This is very important as it starts clearing the way for Bitcoin to be a more accepted method of payment. I also agree with the article that we are still far away of it replacing traditional Fiat as the price fluctuates so much it makes it difficult for people to transact in such a volatile “currency.” We need price stability at one point, but for now it seems to be working as an speculative investment of sorts.