Betting on bitcoin_ visualizing trends in bitcoin and VC _ PitchBook News bitcoin chart 2016

Data visualization by anwell wang

Several factors are driving shifts in the VC and bitcoin landscape currently: the rising tide of VC deal sizes, as well as several fast-growing bitcoin startups, has lifted the amount of VC invested over the past several quarters, even though deal count has steadily declined. Falling bitcoin prices, although widely used as a gauge for concern, aren’t necessarily the best metric for evaluating bitcoin’s potential.

Bitcoin is an innovative appropriation of an ancient idea, and, like any other young technology, it is facing the challenges of courting users, developing common standards of usage and more—for all we know, similar problems arose when mesopotamians first used clay tokens as a form of payment. Issues peculiar to bitcoin are mainly security-related; its central concept is not that challenging, but its security ramifications are complex.Bitcoin chart 2016

yet as the data viz shows, quite a few prominent vcs as well as users worldwide seem to be increasingly backing the digital currency, the former with more and more money and the latter with surging usage. (it’s important to note the amount of VC invested in bitcoin startups in 2015 thus far is already the second-highest quarterly total since 2012’s start.) the coindesk 2015 state of bitcoinpoints toward cautious optimism as more companies accept bitcoin and mining network difficulties decline, although it does emphasize caution.

That caution is the most important thing to observe about bitcoin right now. Back when its price eclipsed $1,000, it was easy to succumb to the hype around the cryptocurrency; and now that the price has dropped amid some major security scandals (e.G. Mt. Gox), it’s also easy to be a little bearish.Bitcoin chart 2016 but with vcs clearly demonstrating confidence in the startups best navigating the space, and its usage growing, bitcoin shouldn’t be counted out just yet.

With that in mind, here’s a select list of the bitcoin startups identified by pitchbook company signals as some of the hottest in the space:

Interested in more VC data on bitcoin companies? Contact us here for a free trial of the pitchbook platform.

Data visualization by anwell wang

Several factors are driving shifts in the VC and bitcoin landscape currently: the rising tide of VC deal sizes, as well as several fast-growing bitcoin startups, has lifted the amount of VC invested over the past several quarters, even though deal count has steadily declined. Falling bitcoin prices, although widely used as a gauge for concern, aren’t necessarily the best metric for evaluating bitcoin’s potential.Bitcoin chart 2016

Bitcoin is an innovative appropriation of an ancient idea, and, like any other young technology, it is facing the challenges of courting users, developing common standards of usage and more—for all we know, similar problems arose when mesopotamians first used clay tokens as a form of payment. Issues peculiar to bitcoin are mainly security-related; its central concept is not that challenging, but its security ramifications are complex. Yet as the data viz shows, quite a few prominent vcs as well as users worldwide seem to be increasingly backing the digital currency, the former with more and more money and the latter with surging usage. (it’s important to note the amount of VC invested in bitcoin startups in 2015 thus far is already the second-highest quarterly total since 2012’s start.) the coindesk 2015 state of bitcoinpoints toward cautious optimism as more companies accept bitcoin and mining network difficulties decline, although it does emphasize caution.Bitcoin chart 2016

That caution is the most important thing to observe about bitcoin right now. Back when its price eclipsed $1,000, it was easy to succumb to the hype around the cryptocurrency; and now that the price has dropped amid some major security scandals (e.G. Mt. Gox), it’s also easy to be a little bearish. But with vcs clearly demonstrating confidence in the startups best navigating the space, and its usage growing, bitcoin shouldn’t be counted out just yet.

With that in mind, here’s a select list of the bitcoin startups identified by pitchbook company signals as some of the hottest in the space:

Interested in more VC data on bitcoin companies? Contact us here for a free trial of the pitchbook platform.