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2013 – The Year Bitcoin Went Mainstream

Posted on by Corey foundation

2013 was the year that Bitcoin went mainstream. Bitcoin has been up against some seriouschallenges but has proven to be resilient and here to stay.

  1. The price of bitcoin grew 56X in 2013 from $13.51 to $756.79 on the MtGox exchange
  2. The first ASCI mining rigs were shipped 1/31/13 fueling bitcoin’s explosive growth to a $1 Billion market cap on 3/28/13
  3. The infamous Silk Road was shut down and assets seised by the government on 010/2/13 leading into China’s Bidu beginning to accept bitcoin as payment. US Congress hearings brought bitcoin into the limelight fueling a massive run to over $1,000 per bitcoin on 11/27/13. A few weeks later, China told it’s banks and payment processors to stop accepting bitcoin as payment ending the year in a negative tone.
  4. The total VC investment in the bitcoin startup ecosystem totaled $98 million in 2013 with Coinbase’s $25 million investment leading the pack.
  5. Regulatory pressure remains mixed with the US being the most lenient of them all.
  6. Younger exchanges emerged to unseat MtGox’s dominance as BTC China dethroned MtGox which was later passed by Bitstamp
  7. Growth in merchant and consumer adoption has grown dramatically as people see Bitcoin as not just only an investment
  8. The rise and fall of bitcoin’s value has garnered widespread media attention
  9. There is a lot of important disruption happening all at the same
  10. Marc Andreeesen compares bitcoin to the rise of the PC!
  11. Price & Valuation
  12. Bitcoin ended the year with a market cap of $9.2 billion and hit a high of $1,147.25 with an average price of $188.58
  13. There’s a strong correlation between the number of times bitcoin is mentioned in the media and its value
  14. The end of 2013 saw huge growth of overall transactions and transaction value
  15. Wallstreet is beginning to take notice of bitcoin
  16. Wedbush sees scenarios where bitcoin could be worth 10-100x its current value
  17. New ways of investing in bitcoin are emerging
  18. Bitcoin represents 76% of all the altcoin values combined
  19. There are $314 billion worth of industry disruption to be had
  20. Media & Brand
  21. At the beginning of 2013, bitcoin was seen as shady…
  22. At the end of 2013, Ben Bernanke was chiming in on bitcoin’s potential
  23. Search interest spiked considerably in April and October of 2013
  24. “Bitcoin Mining” remains the most searched bitcoin related keyword of 2013 with “coinbase” growing the most
  25. Interest in bitcoin is strongest in the US
  26. The search interest for bitcoin is globally distributed
  27. Many apps, conferences and services emerged to make the virtual currency “tangible”
  28. Bitcoin is going mainstream
  29. There were many noteworthy bitcoin conferences held through out the year
  30. And there will be many more bitcoin conferences in 2014
  31. Ecosystem
  32. Bitcoin payment companies can be grouped into 6 main categories
  33. China holds some of the largest exchanges with the US still yet to enter the market in a meaningful way
  34. Mt Gox dominated trading volume for the first half of 2013
  35. BTC China dethroned Mt Gox in November
  36. Followed by Bitstamp outgrowing them all in December
  37. 90% of transaction volume happens on 4 exchanges with 77% occurring in USD
  38. Different bitcoin wallet types have emerged
  39. Blockchain being the largest wallet followed by Coinbase
  40. Bitcoin hacks and fraud remain to be a serious problem
  41. Over 3,000 merchants began accepting bitcoin in 2013
  42. Everything from social gaming currencies to space flight can be bought with bitcoin now
  43. The top bitcoin payment processors are coinbase and bitpay
  44. Over $200 million was invested in bitcoin mining equipment in 2013
  45. Bitcoin ATM operators emerged
  46. Venture Capital and Mergers and Acquisitions
  47. Many top VS’s are weighing in and putting their money where their mouth is
  48. Peter Tiel likes to think of money as a bubble that never ends
  49. 81% of all bitcoin VC investments have come from North America but only 60% of the money has been invested in American companies
  50. The greatest number of bitcoin companies are based in the US and China
  51. More than half of bitcoin VC investments have happened in Silicon Valley
  52. 38% of VC investments have been in the payment processing space
  53. 2014 is shaping up to be a big year for VC money flowing into bitcoin
  54. $77.5 million of VC investments in bitcoin happened in 2013
  55. $98 million total has been invested by VC’s in bitcoin to date
  56. Coinbase raised $600 way back in 1/9/12
  57. Not many M&A deals… yet…
  58. Tech & Mining
  59. New features of the bitcoin software are set to be released with 0.9
  60. What features will “make it” and which will be cut is yet to be determined
  61. There are still many innovative use cases for bitcoin which remain unexplored
  62. Bitcoin’s network speed exceeds 14 petahashes per second up 560x from last year
  63. Mining pools dominate the distribution
  64. $319.4 million of bitcoin was mined in 2013
  65. However, mining revenue is falling…
  66. Regulation & Risk
  67. Bitcoin is attracting regulatory attention
  68. Russia has declared all out war on bitcoin
  69. Only 13% of countries have issued regulatory guidance
  70. Bitcoin continues to face many challenges
  71. Remember Occupy Wallstreet?
  72. Bitcoin’s distribution curve shows half of all bitcoin owned by 927 people
  73. But bitcoin still has a lot going for it
  74. Alt Currencies
  75. There are 4 types of alt currencies – physical historical, physical contemporary, digital historical and digital contemporary
  76. 7 forces are driving alt currency
  77. Ever heard of the Brixton? Bitcoin can learn from it.
  78. There are many alt coins and new one pop up every week
  79. Litecoin has been called the silver to bitcoin’s gold
  80. Dogecoin started off as a joke but has since grown into a force to be reckoned with
  81. Namecoin has suffered significant technical challenges but has an interesting perspective
  82. Worldcoin claims to be FAST!
  83. Peercoin is blazing its own trail
  84. Ripple is a payment network and a currency with no mining required
  85. Thats all folks!
  86. Many thanks to CoinDesk for putting together this incredible presentation.

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