State of Bitcoin 2015: Ecosystem Grows Despite Price Decline
CoinDesk is pleased to announce the latest quarterly State of Bitcoin report, featuring a 2014 Year in Review, an in-depth analysis of data and events from the fourth quarter of 2014 and a look ahead to what 2015 might bring.
Overall, 2014 could be characterized as a ‘Tale of Two Bitcoins’.
On the one hand, significant bitcoin venture investment continued and much progress was made in furthering adoption, particularly in bitcoin payment acceptance by big brand names such as Microsoft and Dell.
On the other hand, early on in 2014, the collapse of Mt Gox dealt a crippling blow to bitcoin’s extraordinary price momentum. Bitcoin’s price dropped 67% in 2014 from $951.39 to $309.87 (Slide 7) and so far in 2015 it has plunged a further 18%.
Sustained downward price pressure will likely result in consolidation amongst exchanges and other players sensitive to the price of bitcoin.
Trading and transaction volumes continue to increase
Total bitcoin trading volume on exchanges increased by more than 50% in both BTC and USD terms (Slide 8). While bitcoin may have been the worst performing currency in 2014, it also continues to be the most volatile currency, creating opportunities for speculators.
This post was published at Coin Desk on January 7, 2015.