Bitcoin: Market Research Report

January 2016 | 110 pages | ID: BD38E2FEDAFEN
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 2015 through 2020. 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 52 companies including many key and niche players such as -

• Bitmain Technologies Ltd.
• Butterfly Labs, Inc.
• Genesis Coin, Inc.
• KnCMiner AB
• AntPool

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. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW

Bitcoin: Is It a Failed Experiment in Cryptocurrency?
Unlike Previous Crises in Bitcoin Services Ecosystem, Will the Current Blockchain Challenges at the Core of the Bitcoin Wield the Final Death Blow?
The Politics of Increasing Block Size Ravages the Bitcoin Economy
The Tale of Two Bitcoins: Will Bitcoin Survive the Coming Halving of the Bitcoin Network?
Why the World Is Not Ready for the Cryptocurrency?
The Answer to the Question “Is Bitcoin Dead?” Depends on How We Look at Disruptive Financial Technologies
The Rise of the Blockchain Technology from the Ashes of Bitcoin Marks a New Way Forward

Table 1. Rise in Online Banking Fraud Related Losses Drives Interest in Building Blockchain-Based Banking Systems for Foolproof Security: World Online Banking Fraud Losses (in US$ Billion) for the Years 2010, 2012, 2015 and 2018 (includes corresponding Graph/Chart)

An Overview of Current Events & Insights

2016 BITCOIN PRICE PREDICTIONS REMAIN BULLISH

Table 2. After Two Years of Slide from the November 2013 Peak, Bitcoin Prices to Rally in the Year 2016 With Future Price Movements Expected to be Unstable and Volatile: Average Price of Bitcoin (In US$) for the Years 2014, 2015, and YTD 2016

A Look into the State Of Bitcoin Heading into the Year 2016
Belt Tightening in the Bitcoin Industry to Witness VC Finding in Bitcoin Start-Ups Vanish
Falling VC Funding, Slow Consumer Adoption & Unviable Business Models Lead to the Widening of Bitcoin’s Deadpool to Over 30 Casualties in 2 Years: Listing of Select Bitcoin Startups that Died Over the Years 2014 & 2015

Table 3. Falling % Growth in VC Investments in Bitcoin Startups Corroborates the Belt Tightening Trend in the Bitcoin Industry: Quarterly Decline in Growth (In %) in VC Investments for the Years 2014 & 2015 (includes corresponding Graph/Chart)

Bitcoin as a Payment & Funds Transfer Platform Fails….

Table 4. Escalation in Unconfirmed Transactions Kills Bitcoin’s Potential as a Payment Platform & as a Substitute for Credit Cards: Half-Yearly Cumulative Total of Unconfirmed Transactions (In Million) for the Years 2014, 2015 & 2016 YTD (includes corresponding Graph/Chart)

In Addition to Weak Privacy, Transaction Delays Emerge as a Primary Bottleneck, Capping the Currency’s Potential to Rival Cash
Competing Digital Currencies Gain in Popularity as Bitcoin Networks & Their Transaction Processing Capabilities Slows Down to a Snail’s Pace
Bitcoin ATM Installations Slowdown, While Closures & Non-Operational & Offline Units Increase

Table 5. Installed Number of Bitcoin ATMs Worldwide for the Years 2015 & 2016 (includes corresponding Graph/Chart)

Table 6. Disproportionate Spread of Bitcoin ATMs Mirrors the Technology’s Haphazard Popularity & Mixed Success Worldwide: Percentage Breakdown of Bitcoin ATMs by Region for 2016 (includes corresponding Graph/Chart)

Love-Hate Relationship With Bitcoin Leads the Chinese Government to Play a Dubious Role in the Currency’s Evolution
Bitcoin Attracts Flake for Being an Energy Inefficient Based Money System
Rising Difficulty in Mining Bitcoins Makes Mining Operations Unviable

Table 7. Average Mining Revenue Per Day (In US$) Paid in the Form of Block Rewards & Transaction Fees for the Years 2015 & 2016 (includes corresponding Graph/Chart)

Bitcoin Mining Hardware & Cloud Based Bitcoin Mining Grow in Popularity
Complexity of Bitcoin Mining Drives Popularity of Pooled Mining
Weak Banking Systems & High Mobile Penetration Favor Bitcoin Proliferation in Africa

2. THE HISTORY OF BITCOIN, ITS EVOLUTION, ITS SHORTLIVED ASCEND TO BOOM, ITS DOWNFALL & THE LONGLASTING VALUE OF ITS PRIMARY TENETS & PRINCIPLES

The 2007-09 Recession Marks The Emergence of The Bitcoin System
Continued Global Market Instability of 2009-2014 Fuels Bitcoin’s Rise to Boom
Argentina Goes Down in History as One of the Early Adopters of Bitcoin Fuelling its Early Boom
Partial Government Shutdown in the U. S. Triggers the Escalation in Bitcoin Value Witnessed in 2013
Bitcoin’s Early Promise as a Full Reserve Banking Alternative to Fractional Reserve Banking System
Bitcoin’s Liquidity Characteristics & Its Hyped Ability to Challenge Fiat Currency
A Retrospective Review of Bitcoin’s Early Rise to Fame & Its Ensuing Downfall
The Rise to Fame…
The Epic Fall From Grace…
A Peek Into the String of Events That Crippled the Bitcoin System Since its Emergence
Troubled by its Early Success, Governments Wield the First Major Blow to the Bitcoin Economy
How the U. S. Government Killed Innovation in Bitcoin…
By Bringing Bitcoin Under the BSA Act
By Introducing ‘BitLicense’
By Taxing Bitcoin
Loopholes in Bitcoin Network & Trading Technology Wields the Second Major Blow to Bitcoin’s Technological Integrity
Busting of the Silk Road Drug Market Wields the Third Mortal Blow to Bitcoin’s Fragile Reputation
Use of Bitcoin as an Investment Asset Wields the Final Blow to Bitcoin’s Potential as a Future Currency

3. 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?

4. PRODUCT LAUNCHES

Bitwage Introduces Bitcoin Payroll Services in Mexico
Gemini Unveils Bitcoin Services in the UK
BTCC Introduces New Titanium Physical Bitcoins
Ciphrex Unveils Bitcoin Wallet
CoinTerra Unveils GSX I Bitcoin Mining Card

5. RECENT INDUSTRY ACTIVITY

Vitaxel Inks Agreement with Bitspark to Introduce Bitcoin Remittance Service in Malaysia
Blockstream Takes Over GreenAddress
Kraken Takes Over CleverCoin
Coinsecure Inks Partnership Agreement with BitPay
KinerjaPay Enters into Partnership with Bitcoin Indonesia
Kraken Takes Over Cavirtex and Coinsetter
BitGo Forms Partnership with Kraken Bitcoin Exchange
Coinify Forms Bitcoin Partnership with DigixGlobal in Singapore
Coinbase Forays into Singapore Bitcoin Market
Coinbase Enters into Canadian Bitcoin Market
Ripple Enters into Asia-Pacific Bitcoin Market
Coinbase Forays into the UK Market
WPCS Concludes Agreement on Divesting its Seattle Operations
Microelectronics Technology Corporation Buys Bitcoin Miner Company
LeoGroup Uses Bitcoin to Buy Stradivarius Violin
BitPay Inaugurates its Amsterdam based European Headquarters
Bitcoin ATM Introduced in New Zealand
Overstock. com Begins Accepting Bitcoin Payments
RMBTB Shuts Down Trading Operations

6. PLAYERS IN THE BITCOIN ECOSYSTEM

Bitcoin Mining Equipment Manufacturers
Bitmain Technologies Ltd. (China)
Butterfly Labs, Inc. (USA)
Genesis Coin, Inc. (USA)
KnCMiner AB (Sweden)
Bitcoin Mining Pools & Companies
AntPool (China)
BitFury Group Limited (USA)
Eobot
F2Pool (China)
Genesis Mining (Hong Kong)
P2POOL. ORG
Slush's Pool
Bitcoin Exchanges & Trading Platforms
Bit2C (Israel)
Bitcoinde (Germany)
Bitcurex (Poland)
Bitfinex (Hong Kong)
Bitstamp Ltd. (UK)
BTC Markets (Australia)
BTCChina (China)
BTC-e (USA)
Campbx (USA)
Coinbase (USA)
Huobi (China)
Kraken (US)
OKCoin (China)
Bitcoin Brokers, Wallet Providers & Payment Processing Companies, Among Others
1BROKER (USA)
Airbitz (USA)
BitPay, Inc. (USA)
Blockchain. info (Luxembourg)
Blockstream (USA)
BlockTrail B. V. (The Netherlands)
BTCJam (Brazil)
Coinsetter Inc. (USA)
Gliph, Inc. (USA)

7. GLOBAL MARKET PERSPECTIVE

Table 8. World Recent Past, Current and Future Analysis for Bitcoin Analyzed by Cumulative Number of Bitcoins in Circulation in Thousands for Years 2015 through 2020 (includes corresponding Graph/Chart)

Table 9. World Historic Review for Bitcoin Analyzed by Cumulative Number of Bitcoins in Circulation in Thousands for Years 2010 through 2014 (includes corresponding Graph/Chart)

III. COMPETITIVE LANDSCAPE

Total Companies Profiled:
The United States (20)
Canada (1)
Europe (12)
  France (1)
  Germany (1)
  The United Kingdom (3)
  Rest of Europe (7)
Asia-Pacific (Excluding Japan) (15)
Latin America (3)
Middle East (1)