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Contents
1. 2014 in Review
2. Q4 Summary
About CoinDesk
2014 in Review
Summary
Overall, 2014 was a tale of two
bitcoins the bitcoin economy
made progress while bitcoins
price saw a steady decline
Dec-14
Last 12 Months
Sep-14
Q/Q
Dec-13
Commerce
Wallets
7,948,272
6,559,978
21%
3,194,584
2x
82,000
76,000
8%
35,903
2x
180
86
109%
N/A
ATMs
341
251
36%
85x
157,377
184,554
-15%
108,166
45%
432.7
302.9
43%
97.9
4x
83
68
22%
30
3x
Merchants
Sources and notes: CoinDesk, Blockchain.info, BitcoinPulse, Github, Coin ATM Radar. Figures are cumulative from start of records,
except unique bitcoin addresses and media mentions, which are figures for the quarter ending that month.
673
687
-2%
2,889
-76%
6
$900
11 Feb
Massive DDoS attack exploits
transaction malleability bug
$800
$700
6 Mar
18 Jun
Newsweek claims
to have found
bitcoin inventor
Satoshi Nakamoto
List of possible
Silk Road
bitcoin bidders
leaked by US
Marshals
12 Jun
$600
$500
$400
$300
$200
$18m in Silk
Road bitcoins
sold by US
Government
25 Feb
Mt Gox closes,
announces
744,408 BTC
($350m)
missing
11 Apr
PBOC official
says China will
not ban bitcoin
18 Jul
Dell
announces it
will accept
bitcoin
23 Sep
PayPal
announces
bitcoin
partnerships
2 Jul
VC Tim Draper
revealed as
Silk Road
bitcoin auction
winner
11 Aug
Blockchain first
company to
pass over 2m
bitcoin wallets
11 Dec
Microsoft adds
bitcoin payments
for Xbox games
and mobile
content
18 Dec
Favorable revisions
made to proposed
NY BitLicense
Source: CoinDesk Bitcoin Price Index, daily data collected at 00:00 UTC www.coindesk.com/price
$25,000,000,000
90,000,000
$20,000,000,000
70,000,000
50,000,000
$23,161,018,313
79,755,395
80,000,000
60,000,000
%
6
5
$15,000,000,000
51,036,565
40,000,000
7%
5
$14,765,863,042
$10,000,000,000
30,000,000
20,000,000
$5,000,000,000
10,000,000
0
2013
2014
$0
2013
2014
Date
11th
Feb
8th Feb
3rd Jan
56% of Bitcoiners Believe the Bitcoin Price Will Reach $10k in 2014
7th Feb
25th
Feb
18th Jun
10th
Feb
2nd Jan
Total VC investment in
cryptocurrency startups to
date:
$335 $433
m
m
$96
+342
m
%
2013 bitcoin VC investment:
10
$30
m
$30.5
m
(Series A) October 2014
11
$332.6
$300
$250.1
$250
$200
$150
$95.7
$100
$50
$0
2013 Bitcoin
2014 Bitcoin
1995 Internet*
*Includes first sequence venture deals but excludes late-stage 1995 Internet investments ($257.6m). For
additional disclosure on methodology see
www.coindesk.com/following-money-trends-bitcoin-venture-capital-investment/
Sources: CoinDesk, PricewaterhouseCoopers
12
Countries
receiving
first VC
investment
in 2012-13
Countries
receiving
first VC
investment
in 2014
13
14
+ Exchange
Sep 2014
Payment + Infrastructure
Processor
Feb 2014
Wallet
Infrastructu Exchange
+ re
+
Sep 2014
Jul 2013
Source: CoinDesk
15
Aug 2014
Aug 2014
Jul 2014
Source: CoinDesk
16
2014
2013
17
Name
MarketCap
Bitcoin
$ 4,132,670,815
Ripple
$ 706,795,764
Litecoin
$ 79,521,355
BitShares
$ 38,420,086
PayCoin
$ 35,959,731
MaidSafeCoin
$ 23,917,169
Nxt
$ 18,392,947
Stellar
$ 17,713,142
Dogecoin
$ 17,145,911
10
Peercoin
$ 11,573,821
18
Q4 2014
19
Price and
Valuation
20
Source: CoinDesk Bitcoin Price Index, daily data collected at 00:00 UTC
www.coindesk.com/price
21
$425
$400
16 Oct
Bitcoin Group
seeks to
launch world's
first Bitcoin IPO
$375
12 Nov
4 Dec
Bitcoin price
surges past
$400 mark for
the first time
since midOctober
Daily bitcoin
transactions
pass 100,000
milestone
10 Dec
Hacker returns
225 BTC taken
from Blockchain
wallets
11 Dec
$350
3 Oct
$325
$300
Russia proposes
monetary
penalties for
bitcoin use and
promotion
22 Nov
Boost VC goes
full bitcoin' for
next startup
mentor round
18 Dec
Lawsky outlines
relaxation of
New York
BitLicense
Source: CoinDesk Bitcoin Price Index, daily data collected at 00:00 UTC www.coindesk.com/price
22
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
23
24
700
237.5%
600
250%
Total Number of Altcoins
Quarterly Growth in
New Altcoins
483
500
590
200%
150%
400
347
300
100%
216
200
100
0
68.4%
60.6%
50%
39.2%
64
41609.0
22.2%
41699.0
41791.0
41883.0
41974.0
0%
*Altcoin market cap share calculated by dividing the sum of all non-bitcoin cryptocurrency market caps by all
cryptocurrency market caps (including bitcoin). For example, if altcoins have 8% market value share, then bitcoin has 92%
market value share. Total number of altcoins is the number at the end of each quarter.
Sources: CoinMarketCap, Internet Archive
25
Media
26
Bitcoin
network
difficulty
declined for
first time in
two years
27
Date
Bitcoin Price Finds Hard Floor Following 26,000 BTC Sell Order
State of Bitcoin Q3 2014: Ecosystem Maturing Amid Price Pressure 7th Oct
4
5
Gavin Andresen Proposes Bitcoin Hard Fork to Address Network Scal 8th Oct
ability
Markets Weekly: Bitcoin Price Resilience Crumbles
27th Oct
8
9
10
6th Oct
12th Nov
14th Oct
11th Dec
6th Nov
26th Oct
13th Oct
Source: CoinDesk
28
WSJ
Q4 2014
Q3 2014
NYT
FT
0
100
200
300
400
500
600
29
Related Searches:
Rising
Past 90
Days
Past 12
Months
30
VC Investment
31
$30.5
m
(Series A) October 2014
$21
m
(Series A) November
2014
32
Total VC investment in
cryptocurrency startups to
date:
$130m$433
m
$64m +43
%
Q3 2014 bitcoin VC investment:
33
$ Invested as of Q3
Region Q4
Q3 Q/Q
Q/Q
s
($m) ($m) ($m)
Asia; 7%
Europe; 23%
US & Canada ; 66%
US &
285.4 215.8
Canada
69.6
32%
Europe
99.2
48.7
50.5
104%
Asia
31.0
26.9
4.1
15%
5.5
5.0
91%
6.0
0.0
0%
Middle
10.5
East
Latin
6.0
America
Total
42%
34
$250
$200
$150
$100
$40.7 $42.9
$50
$0
$14.9 $18.1
$6.9 $10.5
$4.0
$3.4
$1.8
$1.2
$0.8
$0.6
$0.5
$0.2 $0.3 $0.3 $0.3
$25.0
35
No. of Companies
Tech hub
concentratio
n
Silicon Valley; 27%
Value
($m)
No. of
companie
s
Silicon Valley
116.4
15
Rest of World
316.3
68
Total
432.7
83
36
Wallets
Universal
Financial
Services
Payment
Processing
Mining
37
$40
$33.6
$35
$30
$25
$20
$16.0
$15
$34.8
Universal
Exchange
Payment Processor
Mining
Financial Services
Wallet
$10
$5
$2.7
$2.7
$0
Sources: CoinDesk (www.coindesk.com/bitcoin-venture-capital/),
CrunchBase
38
$ Invested as of Q3
Sector
Universal ; 15%
Exchange ; 13%
Financial Services; 20%
Wallet; 20%
Mining ; 19%
Q/Q
($m)
Q/Q
Universal
66.5
63.8
2.7
Financial
Services
90.4
55.6
34.8
62%
Mining
81.6
48.0
33.6
70%
Wallet
89.2
49.2
40.0
81%
50.7
48.0
2.7
6%
54.3
38.3
16.0
42%
432.7 302.9
129.8
43%
Exchang
e
Payment
Processo
r
Total
Q4
Q3
($m) ($m)
4%
Payment Processor; 13%
Universal ; 21%
Exchange ; 16%
39
Company
Size ($m)
Dec-14
Bitreserve
9.5
Roun
d
Secon
d
Dec-14
BitGold
3.5
Third
Dec-14
PeerNova
8.6
First
Dec-14
ChangeTip
3.5
First
Dec-14
DigiByte
0.25
Seed
Dec-14
GetGems
0.6
Seed
Nov-14
Purse.io
0.3
Seed
Nov-14
Blockstream
21
Select Investors
Headquarter
ed
Undisclosed
San Francisco
Unknown
40
Company
Size ($m)
Roun
d
Select Investors
Headquarter
ed
Nov-14
Dogetipbot
0.45
Seed
Nov-14
CoinOutlet
0.05
Seed
Oct-14
SpondooliesTech
Secon
d
Oct-14
BitLendingClub
0.25
Seed
Oct-14
Bitnet
14.5
First
Oct-14
AlphaPoint
1.35
Seed
Oct-14
Coinsetter
1.3
First
Unknown
New York
Oct-14
BitFlyer
0.24
Seed
Tokyo
41
Company
Size ($m)
Oct-14
Libra
0.5
Oct-14
Melotic
1.18
Oct-14
Devign Lab
0.2
Oct-14
BitFury
20
Oct-14
Coinplug
2.5
Oct-14
Blockchain
30.5
Oct-14
SolidX
Oct-14
Snapcard
1.5
Roun
d
Select Investors
Headquarter
ed
42
Commerce
43
44K
38
K
44
R = 0.96
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Total merchants
Forecasted merchants
Sources and notes: total current merchants based on data from Coinbase and BitPay. Historical Coinbase data provided by
BitcoinPulse. BitPay historical data between new merchant press release announcements of 10,000 (16 th Sep 2013),
20,000 (13th Jan 2014) and 30,000 (28th May 2014), respectively, calculated using linear interpolation.
45
13,903
12,936
12,000
10,360
10,000
8,000
6,000
6,000
4,000
2,000
0
Q4 2013
16,800
Q1 2014
Q2 2014
Q3 2014
Q4 2014
46
Annual Revenue
($bn)
86.8
56.9
13.9
5.0
4.5
4.3
3.4
2.8
1.3
1.0
Company
Microsoft
Dell
Dish Network
Expedia
Intuit
Monprix*
Time Inc.**
NewEgg
Overstock
TigerDirect*
Total
$179.9
*Monprix is a private company; most recent revenue data is from 2005. TigerDirect estimate provided by parent company investor
relations. Other divisions that are part of a larger parent organization, but do not break out individual divisional revenues, are excluded.
**The revenue is Time Inc. FY 2013 revenue
47
Coffee Grinder
Infant Formula
Consumer
Electronics
Playstation
Digital Camera
Bluetooth Speaker
48
R2 = 0.971
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Total Wallets
Forecasted Wallets
Sources and notes: total wallets based on data from Blockchain.info, MultiBit, Coinbase, Andreas Schildbach (Android
Bitcoin Wallet developer). Historical Coinbase data provided by BitcoinPulse.
49
50
1213246
51
350
300
250
200
150
100
50
0
Total ATMs
Forecasted ATMs
52
Lamassu
accounts
for over a
third of
the bitcoin
ATM
market
53
54
Technology
55
15,000,000,000
10,000,000,000
5,000,000,000
0
*CoinDesk examined the issue in September 2014 and concluded that difficulty could reverse if prices do not recover
www.coindesk.com/bitcoin-mining-can-longer-ignore-moores-law/
Source: CoinDesk
56
Discus Fish
BitMinter
Unknown with 1BwZeHJ Address
Bitcoin Affiliate Network
P2Pool
AntPool
BTC
Guild
Eligius
BTCChina Pool
Unknown with 1AcAj9p Address
KnCMiner GHash.IO
Slush
57
Source: CoinBase
58
Source: BitcoinPulse
59
Source: BitcoinPulse
60
61
Source: CoinDesk
62
Source: BitGo
63
64
Source: Peer-to-Peer Review: The State of Academic Bitcoin Research 2014 by Brett Scott.
Word Cloud of 250 article titles generated using Tagul.
65
66
Ben Lawsky
Source: CoinDesk
UK Banks
Safello first to
partner with
UK bank
Unisend reestablished
partnership
with a state
bank
Source: CoinDesk
68
10 Nov
Russia lowers
proposed
penalties for
bitcoin
activities
9 Oct
Russia's startups
seek refuge
abroad under
threat of bitcoin
ban
29 Dec
Russian
ministry
criticises
draft bill
banning
bitcoin
4 Dec
Russian
conference
presses on under
threat of bitcoin
ban
Source: CoinDesk
69
70
71
Izabella Kaminska,
Financial Times
Regulation is an
existential threat for
bitcoin because it can
only compete
effectively if it remains
an unregulated asset
class.
72
73
Views on Bitcoin
Jon Matonis
Founding Director
Bitcoin Foundation
74
Factoring in Remittance Fees Makes SubSaharan Africa Most Fertile Market for Bitcoin
BMPI Regional Distribution Top 10
Asia; 7%
Post-Soviet/Communist; 17%
Europe; 3%
Middle East & North Africa; 13%
Source: Hileman (2014) Bitcoin Market Potential Index, London School of Economics working
paper.
Announcement article: www.coindesk.com/argentina-most-likely-adopt-bitcoin/
75
Source: Wikipedia
https://team.cartodb.com/u/andrew/viz/365aa620-c273-11e4-bac7-0e018d66dc29/embed_map
76
About CoinDesk
77
Disclaimer
78