Georgi Georgiev has asked me to post his infographic on my blog, so here it is:
Here’s G’s accompanying text:
The Bitcoin Train Is Just Leaving The Station
Despite naysayers writing Bitcoin off as a fad, bubble, scam or something only computer geeks would ever use. The simple truth is that the cryptocurrency has had a major impact on society and if the indicators in Bargain Fox’s new infographic are anything to go by, the train is only just leaving the station.
The decentralised unit of exchange was created by somebody who calls themself Satoshi Nakamoto in January 2009. Although professor of Finance at UCLA, Bhagwan Chowdry recently said he would be nominating Nakamoto for the Nobel Prize in Economics, the mysterious figure has kept their identity hidden from the public, preferring instead for the technology itself to get the spotlight. Nobody owns bitcoin and it operates on a peer to peer basis across the internet.
The legend of Nakamoto and the “Genesis Block” the first block in the blockchain, which referenced the global financial crisis, has given bitcoin a revolutionary quality. And with growing mainstream acceptance perhaps that revolution will be won.
Indeed, there are now over 100,000 merchants (online and offline) that accept bitcoin as a payment method. An increase on last year’s 65,000 number. This isn’t just down to customer demand either. Retailers can begin using the BitPay payment processor free of charge and even when they progress to the premium version they are only charged 1% of the transaction, much lower than Visa and Mastercard. Another benefit is that they do not have to deal with fraudulent chargebacks because there is no inbuilt authority or mechanism to force a refund like there is when a customer calls their credit card company. In August 2015 BitPay reached a record number of transactions, totalling 70,000 in one month. Everyone from Microsoft to small niche online stores are on board, so the uptake is only going to increase.
In terms of bitcoin’s total daily transaction value $289 million is roughly being moved around, which is more than Xoom ($15 million), Western Union ($216m), and hot on the heels of PayPal ($397m). The trading volume and growth at the exchanges is also on the rise, with Singapore based OK Coin growing a staggering 847% from this time last year. BitStamp which is used more by western traders also grew by 160%.
Everything just seems to be converging together. Thanks to $469 million in venture capital (way up from $2 million in 2012), user friendly technology for bitcoin is on a steep rise. Everything from backend exchange software, to payment processors, to bitcoin wallets, is becoming so much more accessible.
Perhaps the only hurdle remaining that prevents it becoming a true day to day currency is the volatility of its price. Unless they are profiting off the trades, people don’t want something that can buy them 5 large pizzas one day and then only a side of fries the next.
Fortunately all such markets that are small in size will exhibit harsh peaks and valleys in the beginning. The overall trend as BTC matures and becomes much larger, is that volatility is reduced.
Its value has been rising steadily since the start of the year, jumping by over $100 in the last two months alone. Experts predict that this steady growth will continue in to 2016.
While it certainly hasn’t been an easy ride for the cryptocurrency, what with the Silk Road drug market scandal, people losing thousands in the collapse of the Mt. Gox exchange, and national governments clearly not wanting it to exist in the first place. It has managed to gain broad appeal because it does what it promised.
As we approach its 7th birthday BargainFox.co.uk has released an infographic revealing 33 indicators that suggest that bitcoin is going to continue its growth in all areas.