On 6 Dec, 2013, Bank of America released a report on their positive hypothesis of Bitcoin becoming “a major means of payment for e-commerce” and “a serious competitor to traditional money transfer providers.” Above all, the report illuminates the current view of Bitcoin as a currency and the various facets of the market as perceived by investors and enthusiasts.
Given that the price of Bitcoin had soared past USD $1,000 at the end of November and plummeted to its present price point of around USD $800, there has been much speculation and hype surrounding the cryptocurrency.
Bitcoin Companies
There are plenty of opportunities to invest in the Bitcoin space beyond merely buying and holding Bitcoins. It has emerged that Mr Li Ka-Shing has invested in Bitpay, a company that is dubbed as the Paypal for Bitcoin.
While none of these companies have filed for an Initial Public Offering (IPO) and are only seeking angel investors, venture capital and other forms of institutional investments, they are worth closer scrutiny in the New Year as interest and market competition mounts.
Here we highlight a couple of key players in each of the connected Bitcoin categories:
Bitcoin Exchanges
- Coinbase- recently raised $25M Series B funding to help more consumers and businesses use Bitcoin (largest round raised in the industry thus far).
- itBit- Singapore-based company with total of $3.25M Seed funding.
Bitcoin Mining
- Cointerra- raised $1.3M Seed funding
- Avalon Clones- raised $3M Series B funding
Bitcoin News and Information
- ZeroBlock- This company got acquired by BlockChain and reportedly had the deal done in Bitcoins. Way to go!
Bitcoin Infrastructure
- Buttercoin- white-label bitcoin exchange that got $1.25M in Seed funding
Bitcoin Payments and Wallets
- Coinbase (See above)
- Circle- raised $9M Series A funding and founded by Jeremy Allaire, an internet pioneer.
- BitPay- recently raised a round from Mr Li Ka-Shing (through Horizon Ventures) and Founders’ Fund
Bitcoin Investment Vehicles
- Bitcoin Opportunity Fund- has invested in various companies such as Coinsetter, Bitpay, Coinbase, itBit etc.
- Bitcoin Investment Trust- private, open-ended trust invested in Bitcoin and derives value from prices.
Despite the flurry of activity surrounding Bitcoin, regulatory issues are still unclear in many regions. The US has acknowledged its potential promise; Germany recognises it as a unit of account; and Bitcoin is strongly driven by Chinese investors. While some have dismissed it as a speculative asset, already plagued by hoarding and theft issues, it is likely to pave the way for greater acceptance of digital, non-centrally-controlled currency.
One thing is for sure: More parties are entering the fray, taking different positions in a market that represents opportunity for the discerning investor looking for that blue ocean. Here at TradeHero, we’re definitely keeping an eye on Bitcoin and digital currency. As a savvy investor, tell us your move and how we can help you learn more about Bitcoin.
As always, keep calm and keep on trading!
image source: Jason Benjamin/Flickr
