Story image

Is bitcoin the new alternative investment or a bubble ready to burst?

03 Oct 17

The surge in bitcoin prices means that the cryptocurrency’s market valuation has now crossed $75bn.

That’s according to information based on GlobalData's Fintech database, an online platform hosting data, expert analysis and solutions for its customer base of 4000 businesses.

In their latest analysis of the global cryptocurrency value chain, GlobalData is currently tracking 57 cryptocurrency start-ups, of which 21 are headquartered in Asia.

Globaldata explains that bitcoin prices have already quadrupled since the start of 2017, with a single bitcoin surging from a value of $1,000 in January to more than $4,760 in August.

The company says that despite recent measures by some Asian countries to regulate bitcoin exchanges, the impact on price has not only been minimal but the exact opposite.

Globaldata reports that bitcoin prices increased by almost 70% in August itself, rising from $2,784 as on July 31, 2017.

According to Siddharth Agarwal, lead financial analyst at GlobalData, “Regulations will legalise bitcoin and other cryptocurrencies, bringing them closer to national currencies and leading to even wider acceptance.”

The increasing regulation is intended to check money laundering, terrorism financing, and other illegal activities by discouraging use of bitcoin purely for the anonymity it offers, says Globaldata.

However, the regulation is also expected to have a positive impact on the fledgling cryptocurrency industry.

Agarwal adds, “As the regulatory environment is now stabilizing, we will see massive growth in startups dealing with bitcoin and other cryptocurrencies.”

Globaldata likened the current growth witnessed in bitcoin to the Nasdaq bull run during the dot-com bubble: The Nasdaq composite stock market index, which includes many technology companies, rose from around 800 in early 1995 to 5,000 five years later.

The real use-case of bitcoin is growing as it becomes increasingly mainstream, says Globaldata, however, the number of bitcoins that can be mined is limited to 21 million, of which 16.5 million bitcoins are already in circulation.

As bitcoin mining becomes increasingly difficult, this could further drive bitcoin prices upwards, Globaldata predicts.

As a result, bitcoin could emerge as the new asset class for high-risk modern investors.

TCS collaborates with Red Hat to build digital transformation solutions
“By leveraging TCS' technology skills to build more secure, intelligent and responsive solutions, we aim to deliver superior end-user experiences."
Twitter suspects state-sponsored ties to support forum breach
One of Twitter’s support forums was hit by a data breach that may have ties to a state-sponsored attack, however users' personal data was exposed.
How McAfee aims to curb enterprise data loss
McAfee DLP aims to help safeguard intellectual property and ensure compliance by protecting sensitive data.
HPE promotes 'circular economy' for end-of-use tech
HPE is planning to show businesses worldwide that throwing old tech and assets into landfill is not the best option when it comes to end-of-use disposal.
2018 sees 1,500% increase in coinmining malware - report
This issue will only continue to grow as IoT forms the foundation of connected devices and smart city grids.
CSPs ‘not capable enough’ to meet 5G demands of end-users
A new study from Gartner produced some startling findings, including the lack of readiness of communications service providers (CSPs).
Oracle announces a new set of cloud-native managed services
"Developers should have the flexibility to build and deploy their applications anywhere they choose without the threat of cloud vendor lock-in.”
How AT&T aims to help businesses recover faster from a disaster
"Companies need to be able to recover and continue operations ASAP, without pulling resources from other places to get back up and running."