In a recent report, the U.K.-based research firm estimated the value of cryptocurrency transactions would decline to $30 billion in 2015 from over $71 billion last year.
The bearish figures follow a rough start to the year for the controversial digital currency. Prices have been in freefall, trading below $250 throughout January compared with $1,000 at the same time last year, according to CoinDesk, a widely-watched price index.
"The decline is attributable to the combined impact of exchange collapses, Bitcoin theft and regulatory concerns around cryptocurrency's role in funding dark web purchases," Juniper Research said. ..... < snip >
..... "The high-profile Mt. Gox collapse in 2014 highlighted the need for better technology and security controls for bitcoin exchanges, much as the U.S. flash crash highlighted these issues for traditional securities markets," Tepper added. Japanese firm Mt. Gox was a leading bitcoin exchange last year before going bankrupt following the disappearance of 850,000 bitcoins.
As a result of an unregulated marketplace, bitcoin theft has thrived, Juniper Research said, referring to the recent theft of nearly 19,000 bitcoins from U.K exchange Bitstamp, the second largest dollar-bitcoin exchange.
Public perception of bitcoin is closely associated with illegal online purchases and remains a major turnoff for widespread usage. In 2013, the currency came into focus for its prominence on notorious black market website Silk Road. Moreover, reports have emerged that bitcoin may be used by Islamic State militants as part of their fundraising campaigns.
Juniper Research argues that such claims will likely see bitcoin struggle to gain traction beyond a tech-savvy and libertarian demographic.
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Cyber money? What could go wrong?
Juniper Research argues that such claims will likely see bitcoin struggle to gain traction beyond a tech-savvy and libertarian demographic.
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How about Anarchists? Where Libertarians are found, so too are Anarchists. And since I’m on the subject, how about criminals? Well, I think the article answers that one.
“such claims will likely see bitcoin struggle to gain traction beyond a tech-savvy and libertarian demographic.”
Uh, tech-savvy and/or libertarians as a class know better than to get within 100 miles of BS like bitcoin.
Really, I think the struggle will be to gain traction beyond the demographic of fools, you know, that group which is soon parted from their money.