Opinions and analyses

04 December 2018

Bitcoin striving, but blockchain thriving

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For all the hand-wringing going on about the crash of crypto (Bitcoin), the larger prize is still to be claimed.   9 charts that tell the real story.

1: The rise and fall of bitcoin

Bitcoin price. source: Google search for “bitcoin price”

Bitcoin has been spoken about a lot in the 10 years since its birth. Unleashed on the world in 2008, a few weeks after the financial crisis was ushered in as indicated by the fall of Lehman Brothers, it largely stayed in corners of the Internet till a mini bubble grew and popped in 2013–2014. Since then a lot of excitement has built around cryptocurrencies and Bitcoin and other coins flourished, especially in 2017, only to meet their comeuppance in 2018.

2: People looking for information on bitcoin

 
Search term “bitcoin” — for approximately the same period. Source: Google Trends

Our curiosity about the technology has followed the price chart above(more or less). So if Google searches in Dec 2018 were at a 100, we were down 90% by Nov 2019.

3: No of transactions on the bitcoin blockchain

 
source: blockchain.info

Looking past prices, the number of transactions has been going up steadily

4: Number of wallets and user accounts

 
Number of bitcoin wallets online at Blockchain (source: Blockchain.info)

Coinbase and Blockchain are both reporting that they added more than 50k wallets per day recently. Last year Coinbase had more accounts than Charles Schwab did — and there are no signs that this has not been reinforced this year.

5: Blockchain in the enterprise

For all the focus on cryptocurrencies like Bitcoin, Blockchain is solving real problems in the enterprise, in governments, and among technology visionaries.

6: Enterprise Blockchain is a $20B+ opportunity

7: A lot of capital invested in Blockchain

VCs are patient capital building for the long term. The wall of innovation funded by over $3B of early stage investor interest has not hit us yet.

 

8: And this is smart money

Experienced VC firms that know how to build large viable businesses have continued to fund the Blockchain led and Blockchain based innovation.

 

9: A portfolio beyond “Crypto”

As a blockchain focused VC firm, we recommend a broad diversified long term approach to playing the opportunity. These are a select few of our 25 positions in our portfolio at Applied Crypto Ventures.

 

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