San Jose, California (PRWEB) February 12, 2014
Follow us on LinkedIn – Although the Bitcoin market is now turning relatively bearish amid stabilizing consumer interest and drying up of media coverage, the currency continues to witness improvements in value, albeit at a more sustainable rate than hitherto recorded. As one of the most disruptive forces in modern finance, bitcoin took the financial and monetary system by storm. Over the last four years, strong adoption of the technology by people helped transform bitcoin as the most successful digital currency. A revolution in the concept of currency, and widely touted to be the future of money, bitcoin is currently eliciting a mixture of interest, fevered speculation, intense hype, praise, pessimism, skepticism, criticism, and fear, among governments and individuals worldwide.
The recession played an instrumental role in catalysing the development of the “bitcoin virtual currency system.” The complete collapse of financial ethics and the central banks’ inability to ensure the safety of a country’s banking system and protect the credit rights of the people, brought to fore political corruption, and bureaucratic influence over the financial services sector. The public resentment against the monetary system provided a fertile environment for the development of a monetary exchange system outside the ambit of the current government influenced monetary system and provided the reason for developing a free distributed currency system insulated from government interference. As debt ridden governments begin to utilize private savings, pension funds and bank deposits to pay off debts as evidenced by the “Cyprus Bank Heist”, the bitcoin concept offers the much awaited promise of wealth protection for citizens. As central banks scurry to devalue fiat currencies, bitcoin provides the much required refuge against erosion of wealth and savings. As financial markets obfuscate currency and money math to confuse investors, bitcoin pledges transparency, trust, and confidence. As a panacea for the numerous ailments of the current financial system, the bitcoin currency system has been witnessing massive popularity as the first step forward in the evolution of progressive currency systems.
With current global market stability still continuing to be a challenge, bitcoin continues to proliferate. International efforts to build a stronger and robust financial system, immediately following the 2007-2009 world economic recession, still represents an unfinished priority for governments worldwide. A balanced approach towards instating financial stability continues to elude the European and the US government. In the United States, the decision to raise the debt ceiling indicates failure to curb the government’s spending and debt levels, the long-term implications of which include hyper-inflation and reduction in the value of the dollar. In Europe, continuous intervention of the European Central Bank (ECB) to bailout distressed member countries in addition to raising the risk of hyperinflation also increases the risk of migration to other safer investment options like gold and bitcoin. With governments across the world printing paper currency to increase the flow of funds in the economy in a strategy popularly called “quantitative easing”, the resulting inflation and devaluation of money is feeding interest, among staunch supporters, in the revolutionary concept of bitcoin.
China emerged into a leading player in the bitcoin market largely due to the laissez faire approach adopted by the Chinese government. The Chinese government also actively supported the publicity of bitcoin until recently through government sponsored media coverage. The result of veiled recognition and government support of bitcoin was felt across China with the country threatening to possess the ability to potentially change the rules of the game by transforming bitcoin into over a trillion dollar cryptocurrency market. This early Chinese dominance compelled the United States to cautiously soften its regulatory stand to prevent falling back in the bitcoin race. This change in regulatory stand enabled US businesses to help bitcoin make a price comeback post Chinese crackdown. The recent crackdown on bitcoin trading by the Chinese government which fuelled widespread fears of China losing its dominance in the bitcoin game, witnessed the currency bounce back with unexpected vigour. Bitcoin’s successful survival in China marks the resilience of the currency and the ineffectiveness of regulatory measures to quell the currency’s popularity, thus opening up a new epoch in the lifecycle of the bitcoin market.
Major players in the bitcoin ecosystem include TerraHash, CoinTerra, Butterfly Labs Inc., KnCMiner AB, Robocoin Technologies LLC., Bitcoin Cloud Mining, Cloud Hashing, Pyramining, MinerLease, E-pickaxe, BitcoinFrenzy, Byteminr Limited, Bitcoin Central, BTCchina, Bitstamp Ltd., BTC-e, Campbx, Digital Future LLC., Mt.Gox Co. Ltd., RMBTB, VirtEx, BitPay Inc., Coinbase, Gliph Inc., Coinsetter Inc., TruCoin Technologies LLC, and BTCJam, among others.
The research report titled “Bitcoin: A Market Hype or Reality – A Market Overview”, announced by Global Industry Analysts, Inc., provides a comprehensive review of the technology, market, current scenario, future outlook, trends, issues, drivers, challenges and strategic industry activities. The report provides market estimates and projections for cumulative number of bitcoins in circulation in the global market.
For more details about this comprehensive market research report, please visit
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.
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