San Jose, CA (PRWEB) May 27, 2014
Follow us on LinkedIn – As one of the most disruptive forces in modern finance, bitcoin took the financial and monetary system by storm. Strong adoption of the technology by people helped bitcoin rise to fame and stardom as the most successful digital currency. A revolution in the concept of currency, bitcoin during the initial years of its launch elicited a mixture of interest, fevered speculation, intense hype, praise, pessimism, skepticism, criticism, and fear, among governments and people worldwide. Defined as a cryptocurrency, bitcoin evolved during the financial turmoil of the 2007-2009 period, as a means to enable electronic payments by circumventing financial institutions. Unlike most other virtual currencies which are backed by central banks, bitcoin is backed by technology based trust such as cryptographic proofs. As a decentralized digital currency, bitcoin overthrows the risks associated with intrusive governmental regulatory policies on financial transactions. Unstable global financial markets during the period 2009-2013 therefore played a key role in fuelling the early popularity of bitcoin. As several major economies descended into monetary dysfunction and with fiscal strategies like quantitative easing devaluating local currencies and triggering massive migration of savings to safer investment options, bitcoin witnessed increased acceptance during this period. The then prevailing monetary realism in the world economy and the complete collapse in confidence in government issued currency as a result of the government’s failure to act as a good steward of the currency therefore benefited the early development and evolution of bitcoin.
Following the first few years of extraordinary success witnessed in terms of bitcoin’s dizzy ascent in value, popularity and acceptance, the currency system of late is witnessing a major fall from grace with several developments and events casting a cloud over its future. Key events which have negatively impacted bitcoin include widespread government control, restrictions, and ban as a result of fears over the technology’s ability to challenge the hegemony of state money, and repeated failure of the infrastructure that supports the wider bitcoin economy. The debacle of Mt. Gox attributed to technical glitches stands testimony to the system weakness surrounding bitcoin. The fall of Mt. Gox has dealt a mortal blow to public perception, confidence and acceptance of bitcoin and is likely to derail the development of the market and in the process steal over a decade of advancement and growth.
Widespread government control has also largely impacted the market. An increasing number of governments worldwide are growing wary of the risks involved in allowing bitcoin to be transacted freely in the global capital markets, and are therefore actively regulating and banning the currency. Although in its current nascent state, bitcoin offers no real threat to sovereign currencies and global commerce, uncontrolled and unregulated growth of this nationless currency has the ability in the long-run to undermine the strength, stability and confidence of government issued money. The decision of the Chinese government to regulate bitcoin, for instance, has been a major blow to the market, marking the virtual demise of bitcoin in China, which until now was one of the largest markets worldwide. China’s ban on bitcoin in effect has lowered the potential of bitcoin in terms of its ability to make an impact in the global financial market.
The market in the coming years will continue to be impacted by geopolitical events. Other factors which have impacted the market include volatile fluctuations in value, instances of bitcoin theft, hacking, and use of the currency for money laundering transactions. All of these factors have resulted in a quick evaporation of consumer confidence in bitcoin and the initial unchallenged trust in bitcoin is ebbing out. Bitcoin in short has fallen prey to politics, government resistance to financial innovation, and infrastructure inefficiencies. Although bitcoin in its present incarnation is expected to fail, the technology nevertheless has created a legacy and has paved the way for the evolution and emergence of next-generation digital and progressive currency systems. The potential of bitcoin as being an alternative to fiat money has never materialized and still continues to be an unfulfilled promise, nevertheless, the concept of decentralized trust as epitomized by bitcoin has enormous, untapped potential.
As stated by the new market research report on Bitcoin, cumulative number of Bitcoins in circulation worldwide is projected to reach 18.1 million by 2018.
Major players in the bitcoin ecosystem include CoinTerra, KnCMiner AB, Robocoin Technologies LLC, Cloud Hashing, E-pickaxe, ANXBTC, Bitcoincentral, Bitcoinde, Bitcurex, BTC Markets, Bitfinex, BTCChina, Bitstamp Ltd., BTC-e, Campbx, Digital Future LLC, Huobi.com, Justcoin Exchange, Kraken, MercadoBitcoin, VirtEx, BitPay Inc., Coinbase, Gliph Inc., Coinsetter Inc., TruCoin Technologies LLC, 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 1500+ 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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