September 1, 2014
We have written a lot about how Bitcoin economy is shaking up the world. Here is a link to some articles we have written in the past.
A total of $240 Mn has been invested
The explosive rise in number of Bitcoin based Wallets, ATMs as well as merchant adoption is another significant factor to take note of in Coindesk's report. Market Capitalization of the virtual currency has risen over 8 times to reach $8.3 Billion.
Since early 2013, high profile investors such as Andreessen-Horowitz partners have expressed their interest and ethusiasm in Bitcoin. Andreessen-Horowitz has invested
Several people have compared Bitcoin to the beginning of Internet in 1993.
Thirty-two percent of people between the ages of 18 and 24 say they would consider using alternative currencies, such as Bitcoin, according to a recent survey. This suggests that demand for the new technologies is growing.
For a very long time now, Visa and MasterCard have dominated the fintech world enabling the rails for card acceptance. When an issuer bank has to transfer money (for a purchase) for a transaction done by its customer to the receiver (merchant) bank they need a network to complete the transaction. It is like charging a small amount every time (say a portion of $2 on a $100 transaction) but on the millions and millions of transactions that are processed. So much so that they add up to Tens of Billions of dollars every day. The following exhibit shows the average daily transaction value of popular payment networks.
Bitcoin has shown tremendous progress. Even though people expect it to follow the hype cycle, it has already crossed Western Union in terms of volumes of transaction and is not far away from leaving Discover network behind. Bitcoin is only 27% short of PayPal’s daily transaction volumes. The reasons behind the rise in Bitcoin have been the talk of the town so I am not going to expand on that. Here is an exhibit depicting Bitcoin’s popularity over time vs. the incumbents. I have used Google Trends: