Rate of Bitcoins is fluctuating. Can anyone say why? Maybe but think of it.. If we received 1BTC for freelancing. While price increases... Our 779 USD payment for the freelancing is now 9xx USD. Where is our profits coming from since BTC is a currency we can use? BTCBTCBTCBTCBTC
Bitcoin is backed up by dollar. The price of bitcoin is being dictated by the movement in the market. So if you ask where is our profit coming its from the people who buy bitcoins using dollars. If nobody buys bitcoin then its value is useless. The reason why bitcoin is accepted as a currency because you can exchange it to dollars. Your profit only comes in when you exchange your bitcoin to a much higher price compared to the day you hold it.