Market Intelligence Blog Series Part 1 - Assesment

(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 (+)

#bitcoin #bitcoininvesting

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