Familiar Price Gains, updated infrastructure: A look at the Bitcoin economy (Part II)
By Jonathan Stacke
As initially discussed in Part 1 of this series, bitcoin’s exchange rate has garnered significant attention for its recent climb, but far less visible is the dramatic growth in the infrastructure underlying bitcoin economy itself. In continuing with the theme of Part 1, this report will look at the economic evolution behind bitcoin’s growth since the last time exchange rates climbed this dramatically.
In the beginning of this year, the notion of a business accepting payments in bitcoin – particularly at a physical store – was relatively unheard of. When bar/nightclub EVR (co-owned by Charlie Shrem of BitInstant) in New York began accepting bitcoin in April it made national headlines as a unique phenomenon. Since then, thousands of internet and brick-and-mortar merchants have adopted the cheaper, faster payment technology. Coinmap.org and usebitcoins.info tracks physical locations that accept bitcoin payment, with the total figure approaching 1,000 listed merchant locations.
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On the subject of Infrastructure, Bitcoin Black Friday is an awesome community initiative to boost bitcoin commerce going into the holiday season. The idea is to provide sponsor merchants with a hub through which to advertise their products to bitcoin shoppers, hunting for bargains in the run-up to Christmas. A fundamental component of all great ideas is that everyone wins and Bitcoin Black Friday encapsulates this concept perfectly.
Our next selection isn't quite so sunny as it depicts the challenges that US based bitcoin businesses face in securing banking facilities. While bitcoin businesses focus on promotion of the bitcoin economy, the infrastructure that TGB write of at the top of this edition is not yet sufficiently robust to negate the requirement for companies to operate without conventional bank accounts and for those merchants trying to carve a niche at the intersection of fiat currency and bitcoin, conventional banking facilities are a pre-requisite. This insightful piece by John Matonis for Coindesk uncovers the impact that Federal indecision is having on the bitcoin economy in the US...
Expertise and dominance in a particular industry sector doesn't come about by decree. It is achieved over years through repeated practice and creative experimentation. During the first three-and-a-half years of bitcoin’s development from 2009 to 2012, a large portion of that technological experimentation had been occurring in the US with multiple bitcoin trading exchanges and bitcoin-related businesses.
Now, there exists only one functioning exchange in the US with diminishing volume compared to its competitors. The Atlanta-based exchange, Camp BX, had reached such a low point of average daily trading volume that it was removed from the CoinDesk BPI earlier this month. Although the future may not look bright for the US jurisdiction, it does not appear to be a conscious decision on the part of legislators and regulators. The evolving body of law known broadly as “digital currency law” applies at both the federal level and the state level creating overlapping licensing regimes and a considerable compliance investment for new start-ups.
Now, there exists only one functioning exchange in the US with diminishing volume compared to its competitors. The Atlanta-based exchange, Camp BX, had reached such a low point of average daily trading volume that it was removed from the CoinDesk BPI earlier this month. Although the future may not look bright for the US jurisdiction, it does not appear to be a conscious decision on the part of legislators and regulators. The evolving body of law known broadly as “digital currency law” applies at both the federal level and the state level creating overlapping licensing regimes and a considerable compliance investment for new start-ups.
Finally, she is a wife, a mum and a huge bitcoin advocate. The former two nouns might not naturally lead you to think of the third and this is exactly why Pua Pyland, aka Mrs. P or The Bitcoin Wife is trying to get the word out about 'The Strength No one is Talking About' in bitcoin circles: women.
Her presentation at the Austin Mini Conference, can be viewed below. It's a thought provoking watch and a great way to start your Sunday. Enjoy...!
