Fast Facts: Student Loans

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/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Cause and Effect: If you build it, will they come?

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/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Industry Perception, Optical Delusion

January 14, 2013
/   Insights

In Washington, they talk a lot about ‘optics.’ This has nothing to do with regulatory scrutiny, or government mandates on eyeglasses. It has to do with perception—how something looks, the way a particular story...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

Social Banking: Blessing or Curse?

August 1, 2012
/   Insights

While the topic of Facebook and banking has generated plenty of heat (though not necessarily a lot of light), the debate seems mostly focused on two broad issues: The much-maligned IPO, and the notion...

Bitcoin is one of those things that uncertainty revolves around. While Bitcoin has become an increasingly popular option as a payment platform, there are those who still speculate that Bitcoin is on its way to the pile of other discarded fads. On the other hand, there are those that still rally for the crypto currency, citing current economic data as the premise of their argument for Bitcoins success. Below is an analysis of what market indicators show promise for Bitcoin and which point to eventual failure.

Current Value

One particular market indicator that shows that the crypto currency still has a bright future is the market itself. After trading at a one-week in the previous week, Bitcoin is back up to $350. Trading for Bitcoin has tended to remain in the same value area.

While $350 for Bitcoin does show promise, the Bitcoin price index, as predicted by the NetoTrade meta-trader, says otherwise.  says otherwise. The price index indicates that the average price of Bitcoin worldwide has decreased 97%, which is certainly not a modest figure. The record high for Bitcoin was $1,242 in 2013. Therefore, it isn’t terribly unclear why current market forecasters are uncertain regarding the success of Bitcoin.

Integrating Bitcoin into the Economy

It seems that the days of traditional currency exchanges are coming to an end. Despite Bitcoin’s low trading value relative to its past value, popular vendors are more willing to integrate Bitcoin into their payment systems. For instance, PayPal recently announced partnerships with certain merchants that will allow the company to accept payments from Bitcoin using customers. While there is uncertainty about just how the Bitcoin-PayPal integration is going to work, there are ongoing discussions about the details. An integration between PayPal and Bitcoin is likely to expand the currency’s use on a global scale, leading to stronger trading values and success on the market.

The Anti-Bitcoin Sentiment

While there are a few positive indications that Bitcoin may truly become a currency of the future, there is still an anti-Bitcoin sentiment that is alive and well among market analysts. One prominent investor, Matt Phillips declared that Bitcoin was the “worst thing to invest in” in 2014. His sentiment is that Bitcoin is ultimately doomed because it isn’t really a currency, but a form of payment that most retail chains and consumers will want to accept. One of the few ways that Bitcoin will be able to survive, according to Phillips, is through government backing and the market actually taking the “plaything” seriously.

The Future

Looking at Bitcoin’s performance the market, its integration into well-known retail systems, and the strong anti-Bitcoin sentiment, it seems that the results are mixed. True success for Bitcoin really depends upon its ability to attain more widespread acceptance within the market and upon acceptance by government and investors. While Bitcoin trading is still strong, it is nothing compared to the high the crypto-currency exhibited a few years ago and it is unlikely that it will reach such levels. Trading was high for Bitcoin in 2013 because it was seen as a new fad and only the future will say whether the fad is going to be a true form of payment.

Alex Richardson is a Harvard graduate and a marketing and technology expert working with WebHawks Inc. He is based in California, from where he writes to share his thoughts on technology and business development across different marketing fraternities. Catch up with him on LinkedIn for more updates and well researched articles.

 

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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.