(San Francisco): Assesment: There are now over 400 digital currencies, bitcoin being the most popular (BTC) with a market capitalization of approximately $7 billion with a circulation of around 13 million coins.
According to CoinDesk, the number of “wallets” (trading accounts) reached 5.3 million in June, up nearly 700% from the previous year, and about 63,000 businesses worldwide now accept bitcoin. This rapid expansion is expected to continue as world currency dilution (QE) ends.
In a recent survey, 79% of respondents said they would never use an alternative currency. And in a separate Harris Interactive survey released in March, only 6% said they would invest in bitcoin rather than gold. 6% of a 6 $trillion market represents significant growth potential.
M.I. Rating: 8.5 / 10 - High Risk
Level decrease from Jan 2014 rating of (9.0)
Key factors in the (high risk) assessment rating:
The collapse of Tokyo-based Mt. Gox, the largest bitcoin exchange at the time, underscored the risk level of exchanges and long term investing in an unregulated currency (-)
High volatility and lack of or inconsistent regulation globally (-)
Rapidly increased diversity and government regulation (+)
Unresolved security issues (hackers, exchanges, etc.) and comparable insurance options (-)
China & Japan adding liquidity through OKCoin & BtcChina exchanges (+)