July 5, 2017
The cryptocurrency market is going through a unique moment in Brazil. In addition to the recent optimism with bitcoin and other cryptocurrencies, we have an exponential growth of the user base in the country. Here is the analysis of Marcelo Miranda, Board member of the Blockchain Intellectual Property Council on Chamber of Digital Commerce and Founder of the FinChain course. The cryptocurrency market is flourishing and all the companies consulted by the subject registered a great volume of growth in clients and number of operations in the last year.
In 2016, Bitcoin closed the year with an 89% increase, priced at BRL 3,392.00 (USD 1,028.31) in December. And this year, the value keeps growing. It has already reached daily levels of BRL 14,000.00, and by the time this article is published, it will be quoted at more than BRL 9,200.00.
The following chart represents the value of Bitcoin transactions registered from April 2016 to March 2017, per quarter:
According to Miranda, "The moment is good to take advantage of the oscillations of the market that are giving enough opportunities of profit".
Three largest brokers (by market share) in the country and their numbers
Foxbit: Has 80,000 customers. It makes about 200 thousand trades per month. It grows around 30% per month in quantity of operations, volume and billing. It has already received BRL 440,000 from angel investors, of which BRL 40,000 is pre-operating and BRL 400,000 is in the expansion phase.
MercadoBitcoin: Has 300,000 customers. Through the platform, BRL 140 million were transacted in May. It registered an average growth of 200% per year.
Bitcointoyou: Has nearly 200,000 customers. It transacted 40,000 bitcoins in 2016, an amount already surpassed in 2017, with an average transaction of 10,000 bitcoins per month.
Bitcoin is the most famous and traded cryptocurrency in Brazil and in the world; it even serves as the currency for payment in some stores in Brazil. But many investors are interested in cryptocurrency as an investment, as Bitcointoyou's founder André Horta explained, "When compared to the stock market, bitcoin historically has a much higher appreciation than the Bovespa Index, it has an easy understanding and allows people to start with only BRL 10."
It is worth mentioning that Bitcoin and other cryptocurrencies are investments that are more volatile than the Bovespa Index and, therefore, are riskier.
"There are more than 700 cryptocurrencies in the world and all of them are highly valued in 2017. In the long run the tendency is for major currencies to continue to appreciate, although in the short run the chance for a downward correction exists," explained Miranda.
Due to this valuation, the new brokerage Braziliex was born offering operations with several cryptocurrencies, such as Ethereum, Litecoin, and Dash.
We know that there are few companies offering a quality service in this sense. There is a large public without service, and watching the growth of the segment around the world, we set out for action," said Founder Ricardo Rozgrin. "In 14 days, almost 2,000 customers have registered to use our services and hundreds of new registrations are being validated daily, he added.
Mercado Bitcoin also offers Litecoins in its portfolio and is evaluating the entry of other cryptocurrencies. Foxbit, which only has Bitcoin today, intends to start working with other currencies later this year: "Of the many available in the market, Ethereum stands out most, mainly because the project is supported by large technology companies," said Luis Augusto Schiavon, COO of the brokerage house.
Ethereum is the highlight also in the opinion of Marcelo Miranda. "The Ethereum platform is already being used by more than 100 banks and companies worldwide. The currency of the Ethereum blockchain is ETH and has had an extreme appreciation in recent weeks. The cryptocurrency has a chance to overtake Bitcoin, with a steadily growing market share.
This content was published in partnership with StartSe, a leading Brazilian website about startups. The portal contains the StartSe Base, the largest database of startups in the country, with more than 5,000 registered companies.