Do you know that when the price of Bitcoin fell to the lowest point of the year at $286, why did Silicon Valley's top venture capital still invest $30.5 million in this industry? Hidden behind this is a huge bet related to the future of finance.
Signals behind major financing events
On October 6, Bitcoin wallet service provider Blockchain.info announced that it had completed a $30.5 million Series A financing. This round of financing was led by Lightspeed Venture Capital and British billionaire Richard Branson’s Virgin Group. This is the largest financing so far in the virtual currency field, surpassing the $30 million raised by the Bitcoin payment platform Coinbase in May this year.
London founded the company in August 2011, and it is now the most visited Bitcoin wallet website in the world. Without external investment, it has grown into a vital platform in the industry with its own vitality, which has left a deep impression on investors. After all, there are too many companies in this industry that just tell stories.
The philosophy of Bitcoin Jesus persists
There is a key figure named partner Roger Ver 16personalities Chinese , and the development of Blockchain.info is inseparable from him. This liberal known as "Bitcoin Jesus" has a high reputation in the circle. He adheres to the concept of anonymity and decentralization of virtual currency, and believes that this is the fundamental value of Bitcoin.
Roger Ver and the team he leads are the first institutions dedicated to promoting the virtual currency ecosystem. Their consistent perseverance helped Bitcoin successfully survive the most difficult period. In 2012, the iOS application launched by Blockchain Information Company was officially removed from the shelves by Apple. It was not until the end of July this year that the App Store changed its review rules and was able to be put on the shelves again.
The true value behind price fluctuations
In this week's MBTI personality test , Bitcoin fell to the lowest point of the year at $286, a drop of nearly 20%, which made currency speculators sad. However, senior people in the industry know that the price of Bitcoin cannot effectively reflect its core value. Its price has actually more than doubled in the past 12 months.
Those who invest in the place known as Silicon Valley look at long-term trends rather than short-term fluctuations. They feel that Bitcoin is in the process of transforming from a commodity to a currency. It is reasonable to produce price fluctuations in this process. What is really critical is whether Bitcoin can find more practical uses that fit people's daily lives within the scope of daily use applications. Only in this case can the price of Bitcoin stably reflect its own real value.
Positive changes in mainstream applications
In the United States, more and more merchants have begun to accept Bitcoin payments. IBM has even claimed that Bitcoin with blockchain technology is the key technology to solve the shortcomings of the Internet of Things. From stocks and bonds to contracts and voting, the scope of Bitcoin-related applications is expanding towards all aspects of life and at all levels.
Peter Smith, CEO of Blockchain.info, claimed that the new financing will be used to expand and invest in developing markets. He feels that the key point of the MBTI test now is not just to allow users to hold Bitcoin, but more importantly, to make Bitcoin more practical in daily life. The company has developed a blockchain search engine to facilitate users to confirm transaction information.
Opportunities to reshape the financial system
Partners of CRV, the investors who follow the investment, hold the view that the entire financial system can be reshaped through the use of Bitcoin. There is a centralized financial system, which is the current system, which has high cost problems. Specifically, most consumers need to pay a 3% fee when making transactions, and an additional 10% when sending money. Bitcoin provides a method that is a truly universal method of transferring value, with the expectation that it will radically reduce the cost of fees.
There are six major segments, namely trading platforms, wallets, payment processing, financial services, mining and general categories, which are the areas covered by Bitcoin startups. Between mid-2012 and September 2014, 46 U.S. Bitcoin startups received a total of $264 million in investment. Among them, exchanges and financial services companies accounted for 56% of the investment.
Gradual changes in regulatory attitudes
In the latest App Store review manual, Apple added the 11.17 entry, and its attitude towards Bitcoin applications has changed positively. As a result, Blockchain.info and other Bitcoin applications have been relisted, which shows that regulators are updating their understanding of emerging things.
Of course, the Bitcoin industry still faces challenges. Entrepreneurs have to find ways to control and manage Bitcoin to overcome the high cost and difficulty. However, the current situation is moving in a brighter direction. Young people in colleges and universities are full of curiosity about Bitcoin. They are the best samples to test a country's acceptance of new things.
Do you currently think that Bitcoin will become a means of payment in daily life in the future? You are welcome to share your opinions in the comment area and like it so that more people can see the reality of this financial revolution.