The Bitcoin industry is developing very rapidly and it is hard to believe that we have already achieved the first half of the year. As in any new industry, a week’s development often feels as if a month or two has already passed.
So far in 2014 a lot has happened in the Bitcoin world. The collapse of Mt.Gox, large venture capital investments in Bitcoin startups and the auction of the 30,000 Silk Road Bitcoins seized have received a lot of media attention.
Only time will tell us how the Bitcoin will develop in the future. Nevertheless, some trends have developed so far that will decide how and how quickly the Bitcoin will gain greater acceptance.
Here are trends that we already observed in the first half of the year:
Large companies enter the Bitcoin evolution
The year began with a big bang when it was announced here: https://www.forexaktuell.com/en/bitcoin-evolution-scam/ that it would accept Bitcoin as a means of payment in the future. The positive response from the online merchant has also encouraged large companies to continue accepting Bitcoin evolution.
The online consumer electronics retailer TigerDirect has been accepting Bitcoin since late January and other names such as Sacramento King, Lord & Taylor and REED Jewelers followed shortly thereafter. Since the end of June, even online giants with an annual turnover of more than 2 billion accept Bitcoin. These include DISH, Expedia and Newegg.
If we add the growing number of smaller companies that have introduced Bitcoin as a means of payment, we can expect around 100,000 companies by the end of the year.
A warm regulatory Bitcoin evolution climate
Although the mood between the regulators and Bitcoin evolution has not been too good so far, it seems that governments are gradually giving in and are more open to digital currencies.
At the beginning of the year, the Chinese government’s stance towards Bitcoin was rather ambiguous. Until April, the head of the Chinese central bank said that a ban on Bitcoin was “out of the question” because Bitcoin is more of an asset than a currency.
After Russia issued a warning to Bitcoin at the beginning of the year, the government recently announced that it would reconsider its position.
Gerogy Luntovsky, deputy chairman of the Russian Central Bank, said that the government must take time to monitor and examine the development of Bitcoin:
“At this stage, we must observe how the situation develops with such a kind of currency. The
A positive development could also be observed in California. Governor Jerry Brown declared Bitcoin to be “legal money”. Similar news also came from Switzerland, where there were also thoughts of establishing Bitcoin as “legal money”.
The regulators seem to be increasingly prepared to find legislation in favour of the Bitcoin community to prevent money laundering and fraud without stifling innovation.
venture capitalists invest heavily in Bitcoin
Not everyone is as slow as governments.
Serious venture capital companies have already invested in Bitcoin in 2013. This year, however, they seem to want to get off to a good start and have already invested USD 150 million.
The risk capital flowing into the Bitcoin industry supports the Bitcoin infrastructure both explicitly and implicitly: Bitcoin start-ups receive capital to build the products and services needed to build the Bitcoin protocol, and investor confidence creates a legitimate Bitcoin reputation.