Bitcoin Is Alive

“Attempts of Bitcoin to change the world have not met with success …” Similar titles in mass-media we have seen before, but what is actually going on? Let’s see.
Turning back the clock and getting back in 2013, we would see that the new financial invention was met positively as Bitcoin was considered as a real advance in technologies. As Bitcoin was gathering pace and was in the limelight, the largest at that time cryptocurrency exchange Mt. Gox filed for bankruptcy. Hackers stole over 850,000 Bitcoins; it was a crushing blow for the exchange. The world of e-currencies was shocked, so opinions of quick downfall of Bitcoin along with the largest exchange aggregator spread all over the world. Well, there is no the exchanger but Bitcoin is thriving and isn’t going to disappear. Today Bitcoin is even more stable and reliable in all respects, and according the leading financial analysts the year 2016 is expected to be the period when the cryptocurrency will finally become the prevailing trend in settlements of all levels.
The progress of Bitcoin and blockchain was not as active as many of us would like it to be due to its characteristic decentralization, which in its turn is not welcomed by regulators and financial organizations used to receive commission from all transactions. Despite slower development of the cryptocurrency due to various and leading nowhere attempts to control the system of independent payments, Bitcoin is still available worldwide and continue attracting more and more fans.
In 2013 the Bitcoin rate reached its maximum equal to $1,216 for 1 Bitcoin. As of now the rate is around $450; oddly enough, but Bitcoin rate is not the most important parameter, higher index of usage is of much more importance. The index of Bitcoin operations in comparison with the same period of the last year is more than twice higher!
Rush around possible growth of Bitcoin rate due to reduction by a half blockchain blocks is the key reason of increase in number of transactions. In other words, people intend to earn money, so they buy Bitcoins to sell it seven months later when the next surge of Bitcoin rate is expected. We have already written about this issue in one of previous posts.
Speculative atmosphere is not the only argument for increase in transactions. According to Coinbase data, 20% of users spend Bitcoin as any other currency for ordinary payments – this is a very important characteristic of cryptocurrency’s acceptance. Moreover, Bitcoin activity is intensified more and more.
Bitcoin and the technology of its usage, aka ‘blockchain’, represent two inseparable terms. Thanks to resources of blockchain as a comfortable and communicative financial instrument, Bitcoin is gaining popularity in the circle of larger financial institutions, such as NASDAQ, Overstock and others, therefore, working up a significant segment of financial market. Blockchain technology is used by many banks and trading companies for exchange of assets of various value; in this case Bitcoin is used as a default currency for settlements based on blockchain. The prospect of this cryptocurrency is impressive.
Last year was marked by launching the large startup Chain. The key feature of the start was integration of the largest players of the financial world, such as Visa, Nasdaq, Capital One Financial, Ventures; these companies are not only investors but clients of this financial conglomerate as well. In simple words, all these financial giants are in need of blockchain technologies, and as a result, they act as a driving-force for promotion of blockchain. Of course, plans of these companies include their own interests, for instance, securities trading, but this issue doesn’t influence interest in Bitcoin, on the contrary, it may increase the index of Bitcoin acceptance by public. We would like to note that Chain is one of the largest but not the only company.
Currently the possibility of issuing Bitcoin plastic cards is widely discussed; it seems that this idea will be soon put into practice. Well, it may cause a burst of consumer activity. There are some difficulties related to the decentralization of the system, but any decision always comes when you begin thinking it over, so this idea has every reason to be realized.
Closing the discussion we can announce: Bitcoin is alive and it will live; only time and our newsfeed will show what changes await us in the nearest future. Stay with us!