Understanding The Bitcoin Market – A Brief History of The Industry and Its Future Prospects

Bitcoins started as an alternative digital form of currency proposed by inventor Satoshi Nakamoto whom went on to publicly release the source code in 2008 before making the currency official in January of 2009.

Since its injection in to the market the Bitcoin industry has experienced significant growth and in its early years picked up a surprisingly large number of carriers. To date it is estimated there is nearly 6 billion dollars worth of bitcoin currency in existence and the longer the currency exists, the more it will expand.

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Monetarily speaking, Bitcoins reached peak value 2013 when shares of Bitcoin traded at values greater than 1,000$. However, just three years later now Bitcoin stock prices have been cut by almost 50% and currently trade at 588$ a share.

In terms of business prospects, the future of Bitcoin never seemed as bright as it did in 2014 when several colleges began debating accepting bitcoins for tuition fees and several other markets began openly debating the acceptance of Bitcoins for future sales. Its funny, I vividly remember speaking to many ‘old timers’ over this time whom were afraid of what they did not understand; fearing the internet would soon take over our monetary system and the dollar would collapse.

In 2016 however, the fears of the ‘old timers’ appear unfounded and the enthusiasm surrounding the industry seems to have dampened. In fact, most of the headlines surrounding Bitcoin this year have been trending in a decidedly negative direction.

1-15-16 | In 2015 Bitcoin stock prices fell a total of 15% worldwide: http://www.coindesk.com/bitcoin-price-15-network-failure-claims/

3-2-16 | Compared to previous years, in 2016 it now take 43 minutes to verify a bitcoin payment – used to take 10 minutes: http://recode.net/2016/03/02/bitcoins-nightmare-scenario-has-come-to-pass/

3-13-16 | The Russian Ministry of Finance has proposed new regulations that would make Bitcoin illegal to use within the country’s borders. People caught buying/selling Bitcoins in Russia could face fines and up to 4 years in prison for the act, bankers and managers face 7 years in prison: http://news.softpedia.com/news/bitcoin-transactions-in-russia-could-carr…

3-13-16 | Windows announces they will stop accepting Bitcoin as payment: http://news.softpedia.com/news/microsoft-s-windows-10-store-no-longer-ac…

4-1-16 | Wall Street and the tech industry in general seem to be moving past bitcoin in favor of new block chains: http://www.cnbc.com/2016/04/01/wall-street-and-tech-start-to-move-past-b…

Starting in about May 2016, the Bitcoin industry for whatever reason began expanding and for a period of several months the stock price rose. For example in April, Bitcoins were trading at $418 and by August, shares were trading around $600.

However, on August third the largest Bitcoin hack in history occurred when $72 million was stolen from the Bitfinex exchange in Hong Kong. Stock prices immediately fell 20% as a result: http://www.reuters.com/article/us-bitfinex-hacked-hongkong-idUSKCN10E0KP?il=0

Recent events, particularly within the calendar year, have many industry insiders seriously debating the future of the currency – especially considering national governments have begun banning the trade of Bitcoins altogether. As for the average person in society, more and more people seem to be associating Bitcoin usage with shady back room – ‘black-hat’ – deals then they associate it with reputable business transactions. This is an image Bitcoin must change if it desires to remain relevant and continue to grow in the future.

This article (Understand The Bitcoin Market – A Brief History of The Industry and Its Future Prospects) is free and open source. You have permission to republish this article using a creative commons license with attribution to Brian Dunn and Alternative Medi4

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