Bitcoin Quarterly Report Q1: Record investments

CoinDesk has published the latest Bitcoin Quarterly Report #Q1 2015. The following article deals with the top topics of the report and discusses the most interesting developments in the first quarter of 2015.

State of Bitcoin Q1 2015 from CoinDesk

The Bitcoin VC investment totals 676 million US dollars. In the first quarter of 2015, a record amount of 229 million US dollars was invested in Bitcoin start-ups.

21 Inc and Coinbase alone received VC (venture capital) of 116 and 75 million US dollars, respectively.

With venture capital totalling 121 million dollars, 21 Inc has now been able to obtain Coinbase as the best financed Bitcoin startup. Nevertheless, very little is known about the company that calls itself a “universal” Bitcoin company. ( Slide 27).

In total, around 676 million US dollars have been invested in Bitcoin start-ups since 2012. This is a growth of 51% compared to the end of 2014.

The number of countries that received a VC increased from 18 to 22 countries in the first quarter.

New countries include Barbados, France, Kenya and Switzerland. BitPesa thus became the first Bitcoin startup to benefit from VC capital in Africa.

Bitcoin price stabilized

Overall, the Bitcoin ecosystem showed robust growth in the first quarter after an extreme price drop in January. By falling below the 200 dollar mark, which is seen as an important psychological mark, the Bitcoin price surprised most of us.

On 14th January the price per BTC fell to 177 US dollars (CoinDesk BPI), a 24% loss in value (slide 11).

Even though the Bitcoin price has fallen considerably since the beginning of 2015, it was able to settle at around 250 dollars. The trading volume, on the other hand, was unimpressed by the fall in prices (slide 12). This can be an indicator that Bitcoin was able to trade profitably in both the upward and downward trend.

Bitcoin news about the Bitcoin price also seems to have lost attention. In Q3 2014 there were 7 articles among the top 10 articles on CoinDesk that dealt with the Bitcoin price. In Q1 2015 only two articles made it into the top 10 (slide 21).