CoinDesk analyses key cryptocurrency trends, challenges, opportunities, and the outlook for Bitcoin in 2014 in its first Bitcoin report.
Full PDF download is available here: http://www.coindesk.com/bitcoin-2014-report/
Bitcoin price rallied in Q4 2015, increasing 82% to end the quarter at $430.05. Trading volume on exchanges also increased significantly, rising 424% compared to Q4 2014. However, the growth rate of quarterly VC investment in the bitcoin/blockchain sector slowed from 11% in Q3 2015 to 3% in Q4 2015, though it is unclear if this decline is sector-specific or due to the overall VC environment. Major developments in the quarter included the European Court of Justice ruling that bitcoin sales are not subject to VAT, and 42 major financial firms partnering with R3 to explore blockchain applications.
1) Bitcoin's price increased 11% in Q2, with reduced volatility compared to previous quarters. VC investment in bitcoin companies dropped from Q1 but remained robust, while mainstream media coverage declined.
2) Competition is driving consolidation in the bitcoin exchange and mining sectors. Notable deals included CoinBR's acquisition and the BTCS/Spondoolies-Tech merger.
3) Ripple has secured partnerships with several major banks to test its blockchain technology for international payments.
The document provides an overview of the state of blockchain in Q1 2016. Some key points:
- Total VC investment in bitcoin and blockchain startups rebounded in Q1 after declining in Q4 2015, though investment remains below previous highs. The average deal size and largest deals also increased.
- More VC funding is going to blockchain rather than bitcoin startups, as companies pivot away from currency applications. Over 40% of all funding now goes to blockchain and hybrid startups.
- The number of blockchain companies has grown significantly from 14 in Q1 2015 to 59 in Q1 2016. Investment is concentrating in the US, UK, Israel, Argentina, Sweden and Germany.
- Metrics like
- Bitcoin's price fluctuated in Q4 amid mixed news, ending the quarter down 18% for the year. Exchange trading volumes increased over 50% in 2014 and recently surpassed previous highs from late 2013.
- Venture capital investment in bitcoin startups exceeded $400 million for the year, surpassing early-stage internet investment in 1995. The number of countries receiving bitcoin VC investment grew from 8 to 18 in 2014.
- The number of altcoins grew to 590 by the end of 2014, though the growth rate slowed compared to previous quarters, with their combined market share remaining around 9% of bitcoin's market cap.
CoinDesk reveals the key trends, challenges, and opportunities for bitcoin in Q1 2015.
This State of Bitcoin report is sponsored by Gem.co
Get in touch via advertising@coindesk.com if you'd like to sponsor a report in the future.
Ethereum Sentiment Research Spotlight StudyCoinDesk
16 slides•9.5K views
CoinDesk’s Ethereum Sentiment Research Spotlight Study is our inaugural research coverage of Ethereum. It takes a deeper dive into the past few months for the Ethereum and polled 240+ startup execs and enterprise blockchain leads to assess the impact of the DAO hack and subsequent hard fork.
You'll be able to read analysis of the key trends in this article: http://coindesk.com/coindesk-research-spotlight-study-q3-ethereum-hard-fork
To read the full Q3 2016 State of Blockchain report, please go here:
http://www.coindesk.com/research/state-of-blockchain-q3-2016/
We'd appreciate feedback on our research:
https://www.surveymonkey.co.uk/r/6W6WHST
Bitcoin Market Summary - Spark Capital - Produced by Oxana KunetsAndrew Parker
77 slides•89.2K views
This is an analysis by Oxana Kunets, a Columbia GSB MBA that Spark Capital hired on HourlyNerd to study the Bitcoin market. It's a summary of: 1) what is bitcoin, 2) the companies in the space, and 3) concluding investment thesis recommendations.
On 2nd March 2015, we held our first Expert Briefing, inviting a limited number of London's leading finance and technology journalists to learn more about the world of digital money over a few drinks.
These slides are from Garrick Hileman's State of Bitcoin presentation.
The event was sponsored by Elliptic, Circle and General Bytes.
An essential slide-deck about Bitcoin, what is bitcoin mining, how to mine bitcoins, bitcoin trading, how to purchase bitcoins. Learn about the history and future of Bitcoin, the new open source currency.
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56 slides•26.2K views
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Bitcoin and Blockchain Technology Explained: Not just Cryptocurrencies, Econo...Melanie Swan
37 slides•47.2K views
The blockchain concept may be one of the most transformative ideas to impact the world since the Internet. It represents a new organizing paradigm for all activity and integrates humans and technology. Cryptocurrencies like bitcoin are merely one application of the blockchain concept. The blockchain is a public transaction ledger built in a network structure based on cryptographic principles so there does not need to be a centralized intermediary. Any kind of asset (art, car, home, financial contract) may be encoded into the blockchain and transacted, validated, or preserved in a much more efficient manner than at present including ideas, health data, financial assets, automobiles, and government documents. Blockchain technology applies well beyond cryptocurrencies, economics, and markets to all venues of human information processing, collaboration, and interaction including art, health, and literacy.
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41 slides•113.6K views
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- Bitcoin is a decentralized digital currency that uses cryptography to secure transactions. It is not tied to any central authority.
- Transactions are recorded on a public ledger called the blockchain. Bitcoin ownership is determined by private keys, not identities.
- New bitcoins are created through mining, where computers validate transactions by solving complex math problems. Miners are rewarded with new bitcoins.
- Over time, the supply of new bitcoins will approach 21 million as rewards for mining decrease and eventually end. Transaction fees will incentivize mining.
- Bitcoin can be exchanged for goods and services, though its legal status
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A boom in high-quality accumulated evidence–especially how practical, low-cost ‘nudges’ can improve financial decisions–is
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80 slides•14.7K views
- Les caractéristiques du bitcoin.
- Prenons un cas concret.
- Les composants du systèmes.
- Clé privée, clé publique et adresses.
- Les transactions.
- Le réseau d’ordinateurs.
- Le hashage.
- Le blockchain.
- Le minage.
- Les faiblesses.
-Conclusion.
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On 2nd March 2015, we held our first Expert Briefing, inviting a limited number of London's leading finance and technology journalists to learn more about the world of digital money over a few drinks.
These slides are from Garrick Hileman's State of Bitcoin presentation.
The event was sponsored by Elliptic, Circle and General Bytes.
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56 slides•26.2K views
Bitcoin is imagined as a currency for a board game with tradable assets where players need a mutually agreeable way to track balances and trades. Each player is given a copy of a shared ledger recording everyone's token balances. When a trade occurs, the involved players update their ledgers and show others to update theirs, ensuring all copies stay in sync. With modifications like digital ledgers, unique account IDs, and cryptography, this system could function as a global digital currency and payment network controlled by no single entity where users transact directly without fees.
Bitcoin and Blockchain Technology Explained: Not just Cryptocurrencies, Econo...Melanie Swan
37 slides•47.2K views
The blockchain concept may be one of the most transformative ideas to impact the world since the Internet. It represents a new organizing paradigm for all activity and integrates humans and technology. Cryptocurrencies like bitcoin are merely one application of the blockchain concept. The blockchain is a public transaction ledger built in a network structure based on cryptographic principles so there does not need to be a centralized intermediary. Any kind of asset (art, car, home, financial contract) may be encoded into the blockchain and transacted, validated, or preserved in a much more efficient manner than at present including ideas, health data, financial assets, automobiles, and government documents. Blockchain technology applies well beyond cryptocurrencies, economics, and markets to all venues of human information processing, collaboration, and interaction including art, health, and literacy.
A wide-ranging overview of the state of the digital currency economy and blockchain technology from CoinDesk's lead analyst and economic historian at the London School of Economics, Garrick Hileman. This was our curtain-raiser of our Consensus 2015 conference.
Bitcoin is an open-source cryptocurrency created by the pseudonymous Satoshi Nakamoto. It is a decentralized digital currency that uses peer-to-peer technology to operate without a central authority. Transactions are verified through a proof-of-work system and recorded in a public distributed ledger called a blockchain. While bitcoin offers advantages like instant transactions and anonymity, it also faces challenges like volatility, scalability issues, and the risk of losing coins if private keys are lost. Overall, bitcoin remains a controversial new currency that some see as the future while others see risks in its use and acceptance.
This document summarizes blockchain consortia that have taken a collaborative approach to blockchain implementations and learning. It finds that as of December 2016 there were 25 global consortia, with 13 in financial services and 2 in healthcare. The majority were located in the US and UK and formed in 2016. Financial services dominated the sectors represented. The document provides details on the goals, members and leaders of several representative consortia.
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41 slides•113.6K views
The blockchain concept may be one of the most transformative ideas to impact the world since the Internet. Cryptocurrencies like bitcoin are merely one application of the blockchain concept. The blockchain is a public transaction ledger built in a decentralized network structure based on cryptographic principles so that any kind of trading, buying and selling of assets does not need to go through a centralized intermediary. Any kind of asset may be encoded into the blockchain and transacted, validated, or preserved in a much more efficient manner than at present including ideas, health data, financial assets, automobiles, and government documents. Venture Capitalists are calling the blockchain the next big investment wave.
The document provides an introduction to Bitcoin, explaining what it is and how it works. Some key points:
- Bitcoin is a decentralized digital currency that uses cryptography to secure transactions. It is not tied to any central authority.
- Transactions are recorded on a public ledger called the blockchain. Bitcoin ownership is determined by private keys, not identities.
- New bitcoins are created through mining, where computers validate transactions by solving complex math problems. Miners are rewarded with new bitcoins.
- Over time, the supply of new bitcoins will approach 21 million as rewards for mining decrease and eventually end. Transaction fees will incentivize mining.
- Bitcoin can be exchanged for goods and services, though its legal status
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15 slides•1.4K views
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financial principles. Households typically have underdiversified stock holdings and low retirement savings rates. Investors overextrapolate from past returns and trade too often. Even top corporate managers, who are typically highly educated, make decisions that are affected by overconfidence and personal history. Many of these behaviors can be explained by well-known principles from cognitive science.
A boom in high-quality accumulated evidence–especially how practical, low-cost ‘nudges’ can improve financial decisions–is
already giving clear guidance for balanced government regulation
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The document discusses a proposed secure health records management system using blockchain technology. It notes that the healthcare sector currently leads in data breaches and compromised records. The proposed system would use blockchain, encryption, and decentralized access control to put patient health records under the exclusive control of individuals. This is intended to address concerns about privacy and security of health records in the current system.
Bitcoin : comment ça marche et pourquoi c’est une révolution ?Stéphane Traumat
80 slides•14.7K views
- Les caractéristiques du bitcoin.
- Prenons un cas concret.
- Les composants du systèmes.
- Clé privée, clé publique et adresses.
- Les transactions.
- Le réseau d’ordinateurs.
- Le hashage.
- Le blockchain.
- Le minage.
- Les faiblesses.
-Conclusion.
The document discusses how APIs allow companies to focus on their core business by outsourcing non-core functions. It provides examples of companies in different industries that use APIs to improve their business model, including a telecommunications company, a cosmetics company, and a banking company. It also discusses how coding and programming skills are becoming more important and how various initiatives are making it easier for more people to learn how to code.
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52 slides•3.1K views
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New City Trader Magazine EN #2 - Extras ChatGPTNew City Trader
26 slides•14 views
New City Trader is a new magazine for traders, portfolio managers and hedge fund managers. From meetings and conversations, we gathered the hottest topics that piqued the interest of traders and managers. Then, we thought it would be a good idea to create a magazine out of it.
Traditional trading and investing is turning on its head. Traders complain about significant changes that are becoming harder and harder to navigate. Unfortunately, this is just the beginning of this challenging but fascinating transformation, as it is connected to the extraordinary development of new technologies. We are facing a reshuffle comparable to the introduction of computers to trading followed by universal access to the Internet.
AI, big data, alternative data, automats, hybrid systems… these are just a slice of the future that has just begun for us.
In New City Tader we want to point out what will take money away from traders and funds. And on the other hand, what can bring new profits.
You will be introduced to this new and fascinating world. Do you dare to enter? Let’s go, time is running out!
The Art & Craft of Investing Now & In The Future
Artificial Intelligence
Alternative data
Quants: Friends or Foes?
New trading technology
Trends and supertrends
Two trading revolutions
Dark clouds over the future of funds
New sources of risk
Hybrid teams
Billion-dollar trade
How to train the best traders
How do the best traders deal with catastrophic losses?
Systems of the bigges funds
Executive Summary
• According to the Ukrstat, industrial performance in January was worse than our estimates.
• According to the IER, real GDP grew by only 0.8% yoy in Q1’2025.
• Four nuclear power units are under maintenance.
• In April, electricity imports decreased by 30% mom to 191 thous. MWh. Electricity exports almost doubled to 157 thous. MWh.
• In January-April 2025, more than 28 m t of cargo, including more than 15 m t of grain, were transported through the ports.
• Exports of goods fell by 2% yoy in April, while imports increased by 7% yoy.
• In April, the budget situation was favorable and Ukraine received the expected funds from international partners. At the same time, the risks of receiving the next tranche within the Ukraine Facility have increased.
• In April, inflation slowed to 0.7% mom, the lowest since last summer
• The hryvnia remained stable against the dollar against the backdrop of lower demand for cash currency.
Buying a Telegram account is a punishable offense.hjhfrhj88
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These are the slides for Economic Growth of ECO-102. They represent chapter 23 of Krugman and wells. They include concepts such as economic growth, Real GDP, Real GDP per capita etc.
4. The largest annual asset price appreciation in history
$1,200
Bitcoin price up
$1,000
56X
$800
$600
in 2013
$400
2011-13 CAGR of 84,066%
$200
$0
01/01/2013
01/02/2013
01/03/2013
01/04/2013
1/05/2013
1/06/2013
1/07/2013
1/08/2013
1/09/2013
1/10/2013
1/11/2013
1/12/2013
Source: CoinDesk Bitcoin Price Index daily closing price (taken at 00:00 GMT)
4
5. Key Bitcoin events and price response Jan – Jun 2013
Apr 10
Mar 28
Bitcoin
market cap
breaks $1bn
Bitcoin crashes due
to hacks and
exchange crashes
May 17-19
May 7
Coinbase raises $5m
from Union Square
Ventures
Mar 16
First official Bitcoin
conference in San
Jose
Eurogroup/Cypriot gov.
announce 10% tax on
Cyprus depositors
Jan 31
First ASICs are
shipped
Mar 12
May 15
Block chain forks
Dwolla, a popular source of
funding for Mt. Gox, receives
US seizure warrant
Mar 18
US Treasury FinCEN
issues virtual currency
guidance
Source: CoinDesk Bitcoin Price Index daily closing price (taken at 00:00 GMT)
5
6. Key Bitcoin events and price response Oct – Dec 2013
Dec 5
Nov 27
People‟s Bank of China
issues statement, Baidu
and China Telecom stop
accepting bitcoin
Bitcoin breaks
$1,000
Oct 2
Silk Road shut
down
Oct 15
China‟s Baidu
announces it will
accept bitcoin
Dec 16
Nov 17-18
Congressional hearings on
Bitcoin strike positive tone
China‟s payment
processors told not to
deal with bitcoin
Source: CoinDesk Bitcoin Price Index daily closing price (taken at 00:00 GMT)
6
7. Venture capital interest in Bitcoin is growing
Total VC investment
in cryptocurrency
startups of >
$98M
$25M
Largest VC deal to date
(Series B) in November 2013
7
8. Mixed global regulatory picture for Bitcoin
US
Investigative
China
Contentious
Russia
Hostile
8
9. Bitcoin‟s ecosystem is evolving rapidly with many new entrants
Battle for bitcoin exchange supremacy
Mt. Gox was dethroned by BTC
China, which was then dethroned by
Bitstamp
9
10. Bitcoin‟s progress as medium of exchange vs store of value
Early interest in bitcoin
was primarily as an
investment asset
$
Recently there has
been growing
merchant/consumer
adoption
Time
10
12. CoinDesk 2014 outlook
Adoption by more large consumer-facing
companies (eg Overstock and Zynga) will
introduce Bitcoin to a wider audience
„2nd generation‟ Bitcoin startups, more
Series-B rounds, ecosystem M&A
(eg Blockchain acquires ZeroBlock)
Growing interest in other
altcoins (eg Litecoin, Dogecoin)
General Bitcoin bullishness (eg 56%
of CoinDesk survey respondents feel
bitcoin price will reach $10,000 this
year)
More institutional money interest
(eg Fortress fund)
Regulatory uncertainty remains and will
influence adoption and price
12
13. As big as the PC and Internet?
―
Eventually mainstream products, companies and industries emerge to
commercialize it; its effects become profound; and later, many people
wonder why its powerful promise wasn’t more obvious from the start.
What technology am I talking about? Personal computers in 1975, the
Internet in 1993, and – I believe – Bitcoin in 2014.
- Marc Andreessen, Andreessen Horowitz
‖
13
15. CoinDesk Bitcoin Price Index:
2013 by the numbers
2013 Open
$13.51
2013 Close
$756.79
2013 % Δ
5,507%
2013 YE Market Cap $9.2bn
2013 High (4 Dec)
$1,147.25
2013 Low (2 Jan)
$13.28
2013 Average
$188.58
2013 Median
$112.01
Source: CoinDesk Bitcoin Price Index
15
16. Strong correlation between media publicity
and bitcoin‟s price swings
China regulation
Online black market
Silk Road hacked
US Senate
hearings
Price crash
Source: LexisNexis, BBC http://www.bbc.co.uk/news/magazine-25332746
16
17. Value of bitcoins exchanged daily
grew markedly towards end of 2013
Total daily volume
Source: CoinDesk Bitcoin Price Index exchange volume
17
18. Wall Street is taking notice of Bitcoin
5 Dec 2013
―
We get a (market capitalization) number that is
somewhere around $15bn.
Although this does not mean that bitcoin price
cannot rise further (as an object of speculation), we
think the recent rise of bitcoin price could soon run
ahead of its fundamentals.
Our current view implies a maximum fair value
of bitcoin = 1,300 USD.
‖
David Woo
Bank of America Securities
18
19. Wall Street is taking notice of Bitcoin
Figure 1: Implied 1-Year Bitcoin Price
Years to achieving peak penetration
1 Dec 2013
―
Scenarios exist by which a
bitcoin could be worth 10-100X
its current price.
‖
Gil Luria & Aaron Turner
Wedbush Securities
19
20. Ancillary Bitcoin financial services
Hedge funds – Exante ($45m AUM), Pantera
Bitcoin Advisors (Fortress; $150m AUM)
Bitcoin Exchange Traded Funds (ETFs) –
Winklevoss Twins, and others
Investment Trusts - SecondMarket Bitcoin
Investment Trust (BIT) has amassed $61.1m
(67,300 BTC) as of Dec 2013
Derivatives exchanges – Predictious (Ireland),
ICBIT (Russia); German bank
Fidor recently announced interest
20
21. Bitcoin now 20x larger market cap than closest altcoin,
up from 10x in December
Bitcoin represents
76% of total altcoin
market cap
Market capitalization
$7.3bn - bitcoin
$9.6bn - all altcoins
Source: CoinMarketCap.com 20 Feb 2014
21
22. Bitcoin aiming to disrupt an industry
with $314bn+ in total market cap
Processors
Market Cap
Money Transfer/ATMs
Market Cap
Visa Inc
MasterCard Inc
Alliance Data Systems Corp
Total System Services Inc
Global Payments Inc
Euronet Worldwide Inc
Heartland Payment Systems Inc
Netspend Holdings Inc
Green Dot Corp
112,253
97,690
12,615
6,213
4,822
2,325
1,814
1,158
912
Western Union Co
9,421
Euronet Worldwide Inc
2,325
Cardtronics Inc
1,936
MoneyGram International Inc
1,061
TOTAL
239,803
Payment Hardware
TOTAL
69,682
Market Cap
NCR Corp
MICROS Systems Inc
Bank Software
Market Cap
5,837
4,391
VeriFone Systems Inc
2,898
Fidelity National Information Services Inc
15,436
Diebold Inc
2,119
Fiserv Inc
15,118
Outerwall Inc
1,904
Jack Henry & Associates Inc
5,115
INGENICO
1,454
ACI Worldwide Inc
2,433
WINCOR-NIXDORF
1,006
S1 Corp
577
Online Resources Corp
146
TOTAL
38,824
RETALIX LTD
Agilysys Inc
ON TRACK INNOVATIONS LTD
TOTAL
732
333
116
20,789
Source: CoinDesk, Wedbush Securities. Market caps ($m) as of 10 Jan 2014
22
24. In 2013, the narrative surrounding
Bitcoin began shifting
From this …
24
25. In 2013, the narrative surrounding
Bitcoin began shifting (contd.)
To this …
Bitcoin “may hold promise”
―Economists say smallbusiness owners —
especially farmers dealing in
high volume and low profit
margins — are more likely to
accept a volatile currency
like bitcoin than bigger
businesses.‖
25
26. Search interest in „bitcoin‟ spiked in April 2013,
and again near the end of the year
Oct 2013
Apr 2013
Jul 2013
Source: Google Trends
26
27. 2013 top „bitcoin‟ related and rising search terms
Queries
Top
Queries
Rising (%)
bitcoin mining
100
coinbase
450
bitcoins
55
litecoin mining
450
bitcoin price
45
litecoin
400
bitcoin miner
35
bitcoin price
200
bitcoin exchange
35
bitcoin asic
130
bitcoin stock
110
bitcoin value
90
bitcoin chart
80
bitcoin news
80
bitcoin value
35
what is bitcoin
30
buy bitcoin
30
bitcoin wallet
30
bitcoin calculator
25
Above numbers represent search volume
relative to the highest point, which is 100
Source: Google Trends
27
28. 2013 „bitcoin‟ search interest by region
Darker shades = greater
relative search frequency
Source: Google Trends
28
29. 2013 „bitcoin‟ search interest by location
Queries
Top
Queries
Top
Estonia
100
Vancouver
100
Netherlands
96
Amsterdam
99
Hong Kong
88
San Francisco
90
Czech Republic
88
Austin
79
Finland
87
New York
73
United States
79
Toronto
71
Canada
77
San Diego
69
Slovenia
76
Seattle
68
Sweden
74
Stockholm
66
Slovakia
72
Sydney
63
Numbers represent search volume relative to the highest point, which is 100
Source: Google Trends
29
31. Bitcoin has gained a foothold in pop culture
―
The first time in history that you
could see someone holding up
a sign, in person or on TV or in
a photo, and then send them
money with two clicks on your
smartphone.
Bitcoin is a financial
technology dream come true
for even the most hardened
anti-capitalist political
organizer.
College football TV payday: $24,000
‖
- Marc Andreessen
Source: http://www.dailymail.co.uk/news/article-2516708/Savvy-student-gets-24-000-strangers-holding-sign.html
31
32. The number of noteworthy Bitcoin conferences …
2013
May
Jul
Sep
Dec
Bitcoin 2013
BTC London
Inside Bitcoins
The Future of
Payments
London, UK
European
Bitcoin
Convention
San Jose, US
New York, US
Inside Bitcoins
Las Vegas, US
Amsterdam, The
Netherlands
32
33. … has increased significantly in 2014
2014
Jan 25th
Feb 12th
North American
Bitcoin
Conference
Inside Bitcoins
Berlin, Germany
Miami, USA
Mar 3 – 7th
Financial
Cryptography
and Data
Security 2014
Mar 5 – 6th
Mar 25 – 26th
2014 Texas
Bitcoin
Conference
CoinSummit
San Francisco, US
Austin, US
Barbados
Apr 7 – 8th
Apr 11th
May 15 – 17th
Jun 20 – 22th
Nov 2 – 6th
Inside Bitcoins
NYC
Bitcoin Expo
2014
Bitcoin 2014
Bitcoin in the
Beltway
Money2020
New York, US
Toronto, Canada
Amsterdam, The
Netherlands
Las Vegas, US
Washington DC, US
33
35. Bitcoin companies can be grouped into
distinct categories
Payment processors
Mining hardware
Mining hardware
Financial services
Exchanges
Wallets
Unknown
35
36. Top bitcoin exchanges by volume
China
Rest of World
Sources: CoinDesk, Bitcoincharts.com, Bitcoinity.org
36
37. Mt. Gox dominated volume trading in first six months of 2013, but …
Sources: CoinDesk, Bitcoincharts.com
37
38. … was dethroned in Nov by BTC China, which was then …
Sources: CoinDesk, Bitcoincharts.com
38
39. … dethroned by Bitstamp in December
Average* Median*
1
23,936
14,997
2
20,327
12,782
3
15,209
7,051
*Average and median daily bitcoin volume for the period from 18 Dec 2013 - 6 Jan 2014
Sources: CoinDesk, Bitcoincharts.com
39
40. Exchange volume distribution by market and currency value
By market
By currency
mtgox USD
USD
bitstamp USD
btce USD
btcn CNY
11%
mtgox USD
31%
btcn CNY
mtgox EUR
EUR
JPY
CNY
11%
mtgox JPY
btce USD
20%
CNY
EUR
6%
GBP
USD
77%
CAD
bitcure PLN
btcde EUR
bitstamp USD
28%
HKD
PLN
anxhk HKD
kraken EUR
Sources: CoinDesk, Bitcoincharts.com 18 Feb 2014. Note that Mt. Gox halted all trading as of 25 Feb 2014.
40
41. Different types of bitcoin wallets
Desktop
Bitcoin-QT
MultiBit
Bitcoin Wallet
Mycelium
Coinbase
Armory
Electrum
Blockchain
Mobile
Blockchain
Coinbase
Cloud
41
42. Top consumer bitcoin wallets
Installs
1
Blockchain
1,277,618
2
Coinbase
970,000
3
Bitcoin Wallet*
500,000
4
Mycelium*
10,000 - 50,000
Sources: Blockchain.info, Coinbase. *Bitcoin Wallet figures provided by developer; Mycelium figures
obtained from Google Play Store Jan 2013
42
43. Bitcoin hacks and fraud are still significant problems
Oct 2013
Nov 2013
Nov 2013
$4.1m goes missing
as Chinese bitcoin
trading platform GBL
vanishes
Hackers steal $1.2m of
bitcoins from Inputs.io, a
supposedly secure wallet
service
Czech bitcoin exchange
Bitcash.cz hacked and
up to 4,000 user wallets
emptied
With many more …
43
44. Total number of merchants around the globe
accepting bitcoin recently tripled to 3,000+
Source: CoinMap.org Jan 2014
44
46. Top bitcoin payment processors
• 24,000 merchants
(including Overstock.com)
•
•
20,000 merchants
$2.51m in VC funding
• 960,000 consumer wallets
• 4,000 API applications
• US bank integration
• $31.7m in VC funding
Sources: Company websites 18 Feb 2013
46
47. >$200 million has been invested in mining equipment
ASIC mining manufacturers
21e6 - raised $5 million in April
from Silicon Valley Who‟s Who
Black Arrow
ASIC Miner
Cointerra – $20 million
in presales
Avalon
Butterfly Labs
Bitburner
HashFast – presold $15
million worth of mining rigs
Bitfury
KnCMiner
BitMain
Mitten Mining
Virtual Mining
Bitmine
Visionman
Source: Mining equipment investment estimate from Wedbush Securities
47
50. What VCs are saying about Bitcoin
―
We believe that bitcoin represents something
fundamental and powerful, an open and distributed
Internet peer to peer protocol for transferring purchasing
power. It reminds us of SMTP, HTTP, RSS, and
BitTorrent in its architecture and openness.
Fred Wilson
Union Square Ventures
‖
―
I'm confident you will see major worldwide
retailers adopting systems built on bitcoin.
‖
Jim Breyer
Accel Partners
50
51. What VCs are saying about Bitcoin
―
If the technology industry wants to change
the financial services industry, it can‟t just build new
services on top of existing financial services
companies.
‖
―
Chris Dixon
Andreessen Horowitz
It is worth thinking about money as the bubble
that never ends. There is this sort of potential that
bitcoin could become this new phenomenon.
‖
Peter Thiel
Founders Fund
51
52. Geographic distribution of Bitcoin VC investment:
regional analysis
No. of companies
USD invested
North
America
81%
Value
($m)
No. of
companies
Asia
13.3
9
5.6
3
N. America
Europe 6%
Regions
Europe
Asia 14%
78.6
18
Total
97.5
30
Asia 30%
North
America
60%
Europe
10%
81% of all bitcoin VC $s have been invested in North America to
date, but only 60% of the companies are based there
52
53. Geographic distribution of Bitcoin VC investment:
country analysis
No. of companies
USD invested
Australia
7%
Australia
1%
Canada 7%
Canada
11%
Singapore
4%
Sweden
1%
United
Kingdom
5%
0.7
2
Canada
10.5
2
China
8.0
3
3.8
2
South Korea
United
States 70%
No. of
companies
Singapore
South
Korea
1%
Value
($m)
Australia
China 8%
Countries
0.8
2
Sweden
0.6
1
United Kingdom
5.0
2
United States
68.1
16
China 10%
United
States 53%
Singapore
7%
South
Korea 7%
Sweden
United 3%
Kingdom
7%
Greatest number of Bitcoin companies are in the US and China,
over two-thirds of all Bitcoin VC investment is in the US
53
54. Geographic distribution of Bitcoin VC investment:
Silicon Valley vs rest of the world
No. of companies
USD invested
Tech Hub
Concentration
Rest of
World 49%
No. of
companies
Silicon Valley
Silicon
Valley 51%
Value ($m)
50.1
8
Rest of World
47.4
22
Silicon
Valley 27%
Rest of
World 73%
Total
97.5
30
While nearly 75% of VC-backed Bitcoin companies are based
outside Silicon Valley, more than half of all Bitcoin VC money
has been invested in the Valley
54
55. Sector distribution of Bitcoin VC investment
No. of companies
USD invested
Wallet 1%
No. of
companies
Avg./
company
($m)
36.7
6
3.62
Exchange
14.0
9
4.9
Financial
Services
22.5
7
3.9
Mining
Hardware
13.1
3
0.4
Unknown
10.0
2
0.3
Wallet
1.3
3
0.8
Total
Mining
Hardware
13%
Value
($m)
Payment
Processor
Unknown
10%
88.5
30
3.25
Sector
Payment
Processor
38%
Financial
Services
23%
Exchange
14%
Unknown
7%
Wallet
10%
Payment
Processor
20%
Mining
Hardware
10%
Financial
Services
23%
Exchange
30%
• 38% of all VC investment is in payment processors
• Mining hardware has only received 13% investment even though
there is over $200m in mining hardware revenue to date
55
56. 2014 YTD Bitcoin venture investment of $18m
Close Date
Company
Round Size ($m)
Select investors
Headquartered
17/2/14
Safello
Seed
0.60
Individual Investors
Stockholm
5/2/14
BitAccess
Seed
10.00
BiT Capital
Ottawa
31/1/14
HKCex
First
2.00
Individual Investors
Hong Kong
24/1/14
BitFury
Seed
5.00
Undisclosed Venture Investor(s)
Bristol
20/1/14
Korbit
Seed
0.40
Dream Bank, SK Planet, Strong Ventures, Individual Investors
South Korea
2014 VC investment run rate of $108m, or 140% of
total 2013 VC investment in Bitcoin startups of $77.5m
Source: CoinDesk, Dow Jones VentureSource, VentureScanner.com
56
57. $77.5m in 2013 Bitcoin venture investment; $98m all time
Close Date
Company
Round Size ($m)
Select investors
Headquartered
13/12/13
Coinsetter Inc.
Seed
0.26
Undisclosed Debt/Loan
New York
12/12/13
Coinbase Inc.
Second
25.00
Andreessen Horowitz, Ribbit Capital, Union Square Ventures
San Francisco
2/12/13
CoinJar Pty Ltd.
First
0.50
Blackbird Ventures, Individual Investors
Richmond,
Australia
1/12/13
Bex.io / Spawngrid Inc.
Seed
0.50
CrossPacific Capital Partners, Individual Investors
Vancouver
25/11/13
Coinplug Inc.
Seed
0.40
Silverblue Inc.
Seoul
18/11/13
BTC China (Shanghai Satuxi Network Co. Ltd.)
First
5.00
Lightspeed China Partners, Lightspeed Venture Partners
Shanghai
17/11/13
21E6
First
5.05
Individual Investors
San Francisco
12/11/13
Ripple Labs Inc.
Seed
3.50
Camp One Ventures, Core Innovation Capital, Google Ventures,
IDG Capital Partners, Individual Investors, Venture51
San Francisco
11/11/13
itBit PTE. Ltd.
First
3.25
Canaan Partners, Individual Investors, Liberty City Ventures, RRE
Ventures
Singapore
7/11/13
GoCoin Pte. Ltd.
Seed
0.55
BitAngels, Demarest Ventures, Individual Investors, Ruvento
Ventures
Singapore
31/10/13
Circle Internet Financial Inc.
First
9.00
Accel Partners, General Catalyst Partners, Jim Breyer
Boston
29/10/13
Coinfloor Ltd.
N/A
N/A
Passion Capital, Individual Investors
London
Source: CoinDesk, Dow Jones VentureSource, VentureScanner.com
57
58. 2013 Bitcoin venture investment (contd.)
Close Date
Company
Round Size ($m)
Select Investors
Headquartered
1/10/13
GogoCoin
Seed
0.005
Dream Ventures
San Francisco
19/9/13
Gliph Inc.
First
0.20
Boost Fund LLC, Individual Investors
Portland
4/9/13
Beijing Lekuda Network Technology Co. Ltd.
First
1.00
Ventures Labs
Beijing
1/9/13
Vaurum
First
2.00
Boost Fund LLC
San Mateo
1/9/13
Buttercoin
First
1.25
Alexis Ohanian, Centralway, FLOODGATE, Google Ventures,
Initialized Capital, Rothenberg Ventures, Y Combinator
Palo Alto
1/9/13
Armory Technologies
Seed
0.60
Kevin Bombino, Jim Smith, Trace Mayer
Baltimore
19/8/13
Digital Currencies FinTech Co.
First
1.25
Centralway AG, Floodgate, Google Ventures, Individual Investors,
Initialized Capital, Y Combinator
Palo Alto
22/7/13
Avalon Clones
First
3.00
Undisclosed Investors
Scottsdale
16/5/13
BitPay Inc.
Seed
2.00
Founders Fund, Heisenberg Capital
Atlanta
14/5/13
Ripple Labs Inc.
Bridge
3.00
Camp One Ventures, Core Innovation Capital, Google Ventures,
IDG Capital Partners, Individual Investors, Venture51
San Francisco
Source: CoinDesk, Dow Jones VentureSource, VentureScanner.com
58
59. 2012 – 2013 Bitcoin venture investment (contd.)
Close Date
Company
Round
Size ($m)
Select investors
Headquartered
26/4/13
Coinbase Inc.
First
6.11
Ribbit Capital, Union Square Ventures
San Francisco
11/4/13
Ripple Labs Inc.
Bridge
2.5
Andreessen Horowitz, Bitcoin Opportunity Fund, FF Angel IV,
Lightspeed Venture Partners, Vast Ventures
San Francisco
31/3/13
Coinsetter Inc.
Seed
0.50
Bitcoin Opportunity Fund, Barry Silbert,
Tribeca Venture Partners
New York
Mar-13
BTC.sx
Seed
0.15
Joe Lee
Sydney
Mar-13
TradeHill
Seed
0.40
Individual Investors
San Francisco
7/1/13
BitPay Inc.
Seed
0.51
Shakil Khan, Barry Silbert, Roger Ver, Ashton Kutcher, Matt
Mullenweg, Ben Davenport, Trace Mayer
Atlanta
Oct-12
BitInstant
First
1.50
Winklevoss Capital
New York
1/9/12
Coinbase
Seed
0.60
Alexis Ohanian, Y Combinator, Greg Kidd, Garry Tan,
FundersClub
San Francisco
N/A
COINFIRMA
Seed
0.50
Undisclosed Venture Investor(s)
Atlanta
Source: CoinDesk, Dow Jones VentureSource, VentureScanner.com
59
60. Only two noteworthy Bitcoin M&A deals to date …
Satoshi DICE acquired
by undisclosed company
Date:
Jul 2013
Amount: $11.5m
?
ZeroBlock acquired
by Blockchain.info
Date:
Dec 2013
Amount: Undisclosed
… but as the current land-grab subsides and the winners and also-rans
become clear, we anticipate further consolidation
60
62. Features in forthcoming Bitcoin software release (version 0.9)
Payment protocol
Replaces tortuous bitcoin
addresses with human-readable
addresses; also enables refunds
and memos (eg „payment
received‟ message)
Autotools protocol
Makes it easier for
experienced open source
developers to contribute to
the project
Provably prune-able outputs
Provide users the ability to add
some new data (such as a
distributed contract) to be
included via a hash
―0.9 will be released …
when it is ready‖ - Gavin Andresen
Sources: https://bitcoinfoundation.org/blog/?p=290 and https://bitcointalk.org/index.php?topic=300809.msg3225143#msg3225143
62
63. Bitcoin software development roadmap (contd.)
Gavin Andresen:
The below will ―hopefully
make it into the 0.9 release‖
Headers-First, parallel
download chain sync
Further optimizing downloading
the block chain, will enable
future work that makes
downloading the entire chain
optional
No-wallet mode and “bitcoincli”
“Disablewallet” mode, which lets
bitcoind run entirely without a
wallet, making startup faster and
using less run-time memory
Smarter transaction fees
Dynamic, streamlined approach
to determining transaction fees
paid to miners; fees will be based
on the lowest fee that will be
accepted
Sources: https://bitcoinfoundation.org/blog/?p=290 and https://bitcointalk.org/index.php?topic=300809.msg3225143#msg3225143
63
64. Other innovative uses of Bitcoin technology and the
block chain
Notary service
Provides proof that a
given document
existed at a particular
date/time
Bonded identity
service
Secure identities verified
by the block chain and
backed by „fidelity bonds‟
Smart contracts
Computer protocols that
facilitate, verify, or
enforce the negotiation
or performance of a
contract
Smart property
Property that can be
atomically traded and
loaned via the block
chain
64
65. Network speed exceeds 14 petahashes per second,
up 560x from a year ago
Source: The Genesis Block Jan 2014
65
66. Bitcoin mining pool market share
Hashrate distribution of
largest mining pools
Source: Blockchain.info 10 Jan 2014
66
67. $319.4m total mining revenue in 2013 …
Daily mining revenue*
Historical chart showing (number of bitcoins mined per day + transaction fees) * market price. Source: Blockchain.info
67
68. … but mining revenue/operation is falling
Mining revenue
Mining work
Has risen even faster, as
more miners enter the fray
Has risen dramatically
with bitcoin’s price
$6m
$0
Value of all bitcoins
mined per day
2011
2014
Revenue per
operation
1
0
Sextillion mining
operations per day
2011
2014
Has fallen
$1
$0
Revenue
per trillion mining
operations
2011
2014
Source: Bloomberg BusinessWeek, Blockchain.info
68
72. Only 13% of countries which have issued Bitcoin regulatory
guidance can be described as hostile or contentious
Australia
Investigative
Malaysia
Investigative
United Kingdom
Investigative
Belgium
Investigative
Netherlands
Investigative
United States
Investigative
Canada
Investigative
New Zealand
Investigative
China
Contentious
Norway
Investigative
Czech Republic
Investigative
Poland
Investigative
Denmark
Investigative
Russia
Hostile
Finland
Investigative
Singapore
Investigative
France
Investigative
Slovakia
Investigative
Germany
Investigative
South Korea
Investigative
Greenland
Investigative
Sweden
Investigative
Hong Kong
Investigative
Switzerland
Investigative
Iceland
Hostile
Taiwan
Investigative
India
Contentious
Thailand
Investigative
Ireland
Investigative
Turkey
Investigative
Source: BitLegal.net
72
73. Bitcoin faces numerous challenges …
Regulatory
uncertainty
Switching costs
Convenience
Avoidance by traditional
financial institutions
Both real and perceived
Convenience trumps
anonymity for most
consumers
Slower adoption by
consumers/merchants
Few women
involved
Very few women
involved in Bitcoin to
date, yet women have
significant and often
dominant influence on
financial decisions in
many households
Infrastructure
Bitcoin technical
infrastructure
(ie cost, latency)
Hoarding
Desirability of bitcoin
as a store of value works
against use as a
medium of exchange
Source: Hileman (2013) „History and Prospects for Alternative Currencies‟, LSE working paper
73
75. … highly concentrated ownership could lead to significant price
swings and feelings of inequity …
Lost
Distribution of
the 12m
bitcoins in
circulation
1 million
individuals
10,000 individuals
20.7%
24.8%
28.9%
21.5%
47 individuals
880 individuals
Source: Business Insider
75
76. … but Bitcoin can draw on many positives
Expensive,
inefficient
financial system:
High fees: 3%
credit card, > 10%
wire/currency
Slow,
cumbersome
money transfers
Merchants and
consumers both
benefit from change
to status quo, make
for powerful allies
May prove
difficult for
regulators to
ban bitcoin
Bitcoin innovation
transcends
currency‟s use as
a medium of
exchange/store of
value
Silicon Valley‟s
large investment
and proven track
record in changing
behavior and
driving technology
adoption
Source: Hileman (2013) „History and Prospects for Alternative Currencies‟, London School of Economics working paper
76
78. Four types of alternative currencies
Digital
Physical
Type
Historical
Contemporary
Intrinsic
value
Token
Closed
Centralized
Open
Decentralized
N/A
Source: Hileman (2013) „History and Prospects for Alternative Currencies‟, London School of Economics working paper
78