Bitcoin: A Market Hype or Reality: Market Research Report

January 2014 | 96 pages | ID: BB09F118287EN
Global Industry Analysts, Inc

Abstracts

This report analyzes the global market for Bitcoin in terms of Cumulative Number of Bitcoins in Circulation in Thousands.

Annual estimates and forecasts are provided for the period 2010 through 2018.

Market data and analytics are derived from primary and secondary research.

Company profiles are primarily based on public domain information including company URLs.

The report profiles 49 companies including many key and niche players such as -

• TerraHash
• CoinTerra
• Butterfly Labs Inc.
• KnCMiner AB
• Robocoin Technologies LLC

Contents

I.INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations
Disclaimers
Data Interpretation & Reporting Level
Quantitative Techniques & Analytics
Product Definitions and Scope of Study

II. MARKET BUZZ

1.INDUSTRY OVERVIEW

Bitcoin: A Prelude

Table 1. Bitcoin Penetration in Select Countries Worldwide Measured by the Number of Bitcoin Software Client Downloads Presented As a Percentage (%) of Total Population for the Year 2013 (includes corresponding Graph/Chart)

Table 2. Volume of Bitcoin Software Client Downloads for Top 5 Countries for the Month of December 2013 (includes corresponding Graph/Chart)

Table 3. Volume of Bitcoin Software Client Downloads by Select Country for 2013 (includes corresponding Graph/Chart)

Table 4. Global Bitcoin Market (2013): Percentage Share Breakdown of Bitcoin Software Client Downloads by Operating System (OS) in Select Countries (includes corresponding Graph/Chart)

Table 5. Leading Bitcoin Exchanges Worldwide: Percentage Breakdown of Bitcoin Trading Transaction Volumes by Company for H2 2013 (includes corresponding Graph/Chart)

Table 6. Number of Bitcoin Transactions Worldwide Per Day (in Thousands) for Years 2010 Through 2014 (includes corresponding Graph/Chart)

Table 7. World Market for Bitcoin (2011-2014): Breakdown of Bitcoin Transaction Fees (In US$) (includes corresponding Graph/Chart)

The 2007-2009 Recession Marks the Emergence of the Bitcoin System

2.RECENT PAST & CURRENT MARKET SCENARIO

Will the Global Market Instability Drive Future Adoption of Bitcoin?
Eurozone Crisis Drives Pan European Interest in Bitcoin: A Case-In-Point
Partial Government Shutdown in the United States Raised Value of Bitcoin
Growing Acceptance Value & Quantity Value of Bitcoin Spurs its Proliferation

2013Q4: BITCOIN SOARS IN VALUE & CHINA BECOMES THE LEADING PLAYER

Argentina Adds Momentum to Bitcoin Adoption
What Drives the Current Political Pressure on Bitcoin Governance?
Germany’s Bid to Regulate & Control Bitcoins Invites Skepticism
Hard-Line Regulatory Approach of the United States
Early Chinese Dominance Compels US to Cautiously Soften its Regulatory Stand on Bitcoin
A Peek into Bitcoin Regulations in the US
New York Financial Regulator Moves Forward with Tight Bitcoin Regulations
China’s New Stand to Regulate Bitcoin Trading Forces Meltdown in Bitcoin Value
Russian Authorities Warn Against Use of Bitcoins
Bitcoin as a Payment Network: A Peek Into Its True Potential
E-Commerce Popularity Benefits the Use of Bitcoin as a Means of Payment
Will Bitcoin Replace Credit Cards?
Bitcoin as an Alternative for Making Micropayments
Growing Use of Bitcoin for International Funds Transfer
How Pragmatic Is the Evolution of a Pure Bitcoin Based Financial Economy?
Is Bitcoin Truly a Full Reserve Banking Alternative to the Current Fractional Reserve Banking System?
High Energy Requirements of Bitcoin Mining Raises Skepticism
Is Bitcoin Liquid Enough to Challenge Fiat Currency?
The Advent of Colored Coins Adds to Bitcoin Popularity
Bitcoin Mining Hardware & Cloud Based Bitcoin Mining Grow in Popularity
Understanding Bitcoin’s Concept of Anonymity is the Key to Wider Adoption
Complexity of Bitcoin Mining Drives Popularity of Pooled Mining

Table 8. Bitcoin Mining Worldwide: Percentage Share Breakdown of Bitcoin Mining Pools As Measured by Hashrate Distribution As Recorded on 17th January 2013 (includes corresponding Graph/Chart)

PayPal Mulls the Possibility of Extending Support to Bitcoin
Online User Friendly Wallets
Escrow Service for Large Transactions
Merchant Acceptability

3.BITCOIN MARKET OUTLOOK

An Optimistic Research Perspective
Factors Encouraging Optimism:
Bitcoin Exchanges Survive Chinese Crackdown
US Businesses Help Bitcoin Make a Price Comeback Post Chinese Crackdown
Busting of the Silk Road Underground Drug Market and its Positive Implications
Weak Banking Systems & High Mobile Penetration Favor Bitcoin Proliferation in Africa
Growing Interest in Bitcoin Investment

Table 9. Average Value of Bitcoin to US Dollar (US$ Per BTC): Quarterly Breakdown for Years 2011 Through 2013 (includes corresponding Graph/Chart)

Venture Capital Interest in Bitcoin Soars
Top 5 Venture Capital Investments in 2013:
Winklevoss Twins’ Investment Fund for Bitcoin: A Bold Step Forward
Bitcoin ATMs Herald the Emergence of Bitcoin as a Mainstream Currency…
A Pessimistic Research Perspective
Dizzy Spiral of Bitcoin Value to Over US$1240 Punctures the Bitcoin Currency Hype by Igniting Bubble Fears
Institutional Adoption of Bitcoin Still Slow
Technical Glitch Halts Bitcoin Withdrawals at a Major Bitcoin Exchange – Exposes Vulnerability of Existing Bitcoin Infrastructure
Distributed Denial-of-Service Attacks – Another Technical Challenge Currently Being Faced by Bitcoin Exchanges

4.BITCOIN: CONCEPTUAL OVERVIEW

Bitcoin: An Introduction
History
Regulatory Environment
Key Benefits Driving Adoption of Bitcoin
Pseudo-Anonymity & Privacy
Immune to Monetary Inflation
Impervious to Manipulation
Irreversible Transactions
Portability
Low Cost
Divisibility
Economic Independence
Key Challenges to Adoption of Bitcoin
Bitcoin Anonymity & Unregulated Attributes
Lack of Accountability
Impairs National Development
Hoarding & Speculative Trading
Inequitable Distribution of Wealth
Extreme Volatility
Merchant Acceptability
Irreversible
Security Breach
Difficult to Coordinate
Negative Foundation
Vulnerable to Malicious Manipulation
The Promising Future of Cryptocurrency Spurs Competitive Alternatives to Bitcoin
Litecoin (LTC)
PPCoin (PPC)
Freicoin (FRC)
MintChip
Feathercoin
Ripple
'Bitcoin Bridge' to Ripple: A Threat or an Opportunity?

5.RECENT INDUSTRY ACTIVITY

CoinTerra Introduces TerraMiner Design
CoinTerra Unveils Two Low-Cost Bitcoin ASIC Mining Solutions
CoinTerra Launches GoldStrike1 ASIC and TerraMiner IV Bitcoin Mining Rigs
Alchip & KnCMiner AB Introduces 28nm Bitcoin Mining ASIC
eGenesis Launches Dragon's Tale Multiplayer Role-Playing Casino
BitPremier Launches New Bitcoin Startup Venture
Bitcoin Ventures Launches CoinTap Gift Card
Bitcoin Ventures Introduces New CoinTap Reload Card
Phoenix Technologies Unveils X Series Bitcoin Mining Hardware
BTC-e Unveils Demo Version of MetaTrader 4 Platform
AvaTrade Announces Availability of BTC/USD Bitcoin Trading on MT4 and AvaTrader
Kipochi Introduces Kipochi BitCoin Wallet
Bitfinex Introduces Litecoin Trading
Tradehill Introduces Prime Bitcoin Currency Exchange
MonsterMegs Expands Payment Options for Hosting Services
Bittylicious Introduces Bitcoin Purchase Service
ForexMinute Launches Bitcoins News Widget
CoinTerra Partners with CoolIT Systems for Cooling Solutions
BitPay and 3dcart Enter into Partnership
Bitstamp Collaborates with GBGroup to Improve Identity Verification Standards in Bitcoin Trading
Fidor Bank and bitcoin.de Enter into Partnership
PureVPN Adopts Bitcoin Technology for Offering Anonymous Payment Solution to Users
Bitcoins Continue to Offer Alternative Payment Solution in Kenya
Winklevoss Bitcoin Trust Makes Efforts for Increasing Credibility of Bitcoins
OpenCoin Announces Expansion of Ripple Network
Murfie Announces Acceptance of Bitcoins Use for Buying Murfie Credit
Mobile Apps Continue to Enable Bitcoin Transactions
Bitcoinstore Opens Bitcoin-Only Online Electronics Store
EastWestHydro.com Chooses Bitcoin as Alternative Method of Payment
Deed Poll Name Change System Accepts Payments in Bitcoins
Text2Pay Provides Bitcoin Digital Currency
Beanstalk Solar Hosting Adds Bitcoins Processing Capability
Mesasix Adopts Bitcoins Payments Method
ForexMinute Announces Addition of Dedicated Section for Bitcoins
TruLiteLED Accepts Bitcoin Payments for LED Grow Lights Purchases
NetDNA Announces Acceptance of Bitcoin Payments by MaxCDN
CoinMama Announces Successful Development of Platform for Secure Purchase of Bitcoins via PayPal
Berwick to Set Up New Bitcoin ATMs
Ethos Adopts Bitcoins as New Payment Mode
Reddit Accepts Bitcoin Payments for Reddit Gold Subscription Service
BitPay Enters into Partnership with Gyft
Lamassu to Introduce Production Bitcoin Machine ATM
Coinbase Rolls Out New Promotion Offer
BitPay Updates Payment Gateway Platform
HashFast Technologies to Commence Production of New Golden Nonce Chip
Coinbase Announces Addition of Ability for Instant Buying of Bitcoins for Verified Accounts
OKPAY Integrates Bitcoin into Trading System
MainTraditions.com Announces Acceptance of Crypto-Currency
Bitronic Technologies Introduces Bitcoin Tribe Bitcoin Social Network
Bitronic Technologies Adds Supplementary Functionality to Bitronictech.net Website
BitInstant Expands Payment Options
Amagi Metals Becomes the Largest Global Bitcoin Retailer
Mt.Gox to Take Over Bitomat.pl
Mt.Gox to Take Over MtGoxLive.com
Switchpoker.com Launches Bitcoin as Deposit/ Withdrawal Option
Mt. Gox Selects YubiKey Security Solution of Yubico

6.PLAYERS IN THE BITCOIN ECOSYSTEM

Bitcoin Mining Equipment Manufacturers
TerraHash (USA)
CoinTerra (USA)
Butterfly Labs Inc. (USA)
KnCMiner AB (Sweden)
Robocoin Technologies LLC (USA)
Bitcoin Mining Contractors/Services Providers
Bitcoin Cloud Mining (USA)
Cloud Hashing (UK)
Pyramining (USA)
MinerLease (USA)
E-pickaxe (Argentina)
BitcoinFrenzy (USA)
Byteminr Limited (UK)
Bitcoin Exchanges
Bitcoin Central (France)
BTCChina (China)
Bitstamp Ltd. (UK)
BTC-e (USA)
Campbx (USA)
Digital Future LLC (Poland)
Mt.Gox Co. Ltd. (Japan)
RMBTB (China)
VirtEx (Canada)
Bitcoin Based Companies (Includes Bitcoin Trading Platforms, and Payment Processing Companies, Among Others)
BitPay, Inc. (USA)
Coinbase (USA)
Gliph, Inc. (USA)
Coinsetter Inc. (USA)
TruCoin Technologies LLC (USA)
BTCJam (Brazil)

7.GLOBAL MARKET PERSPECTIVE

Table 10. World Recent Past, Current and Future Analysis for Bitcoin Analyzed by Cumulative Number of Bitcoins in Circulation in Thousands for Years 2010 through 2018 (includes corresponding Graph/Chart)

III. COMPETITIVE LANDSCAPE

Total Companies Profiled: 49 (including Divisions/Subsidiaries - 49)
The United States (22)
Canada (3)
Japan (1)
Europe (14)
  France (1)
  Germany (1)
  The United Kingdom (6)
  Rest of Europe (6)
Asia-Pacific (Excluding Japan) (4)
Latin America (3)
Africa (2)