Bitcoin has been referred to as a form of investment and for speculation because, first of all, they have skyrocketed in value and some of them have made money from them. But many also lost because of the sharp fluctuations in value. However, fluctuations in value made this media interesting.
Other investors were attracted by the fact that bitcoins are not issued or controlled by authorities or states, which means, among other things, that the currency cannot be subject to monetary policies such as devaluation or printing new banknotes. Thus, the state cannot dilute the value of the holder’s bitcoins, but their value depends only on supply and demand in the market.
Bitcoin’s popularity as a form of investment has also increased in the wake of the financial crisis in Cyprus after the Cypriot state imposed an additional tax on savings accounts exceeding a certain amount. Some saw the decision as an unfair interference with property rights and then looked for other ways to preserve value that could not be controlled by the authorities, including Bitcoin.
