2017 was record breaking in the world of cryptocurrency. This year, we’ve seen a good number of virtual currencies increase their value exponentially. Bitcoin alone was able to reach $17,900 on December 15. And despite the uncertainty in the coming months, its popularity has continued to rise. There were also other altcoins such as Litecoin that have soared by as much as 8,000% this 2017.
A lot of people are speculating that it’s actually a bubble waiting to burst. A lot of experts have viewed cryptocurrencies to eventually crash. However, no one really knows exactly when is this going to happen.
Financial incentives have stirred intrigue and even optimism among many investors over the past months. Unfortunately, whether or not their optimism is justified or not is really up for debate.
Given the number of people invested virtual currencies, it is no denying that there is public interest. In the first half of 2017 alone, the market cap for cryptocurrency grew by as much as 800%. And because of this, interest in cryptocurrencies created opportunities for many Australian startups to ride the popularity of cryptocurrency.
No Definitive Laws
At this point, there are no definitive laws that can put boundaries to the innovations that businesses can do in Australia. Given the demand and the availability of capital, entrepreneurs are looking to develop businesses that can take advantage of this eco-system in its primordial stage. Here are just some of the companies that have capitalized on the growing popularity of virtual currencies.
Coinjar was built in 2013. The purpose of Coinjar is to allow its users to exchange and store their Bitcoin. Coinjar is one of Australia’s biggest digital currency exchange. Over the years, the popularity of Coinjar grew and now has over 70,000 customers. In addition to this, they have already processed over $100 million worth of transactions from their users.
Given the rise in Bitcoin’s value especially this year, it appears that it’s an opportunity for Coinjar to even expand their number of customers and transactions
Power Ledger is a startup that has managed to raise $27 million in October via an ICO. Since then, they have increased their market capitalization by as much as eight times. This startup gives households and businesses the opportunity to trade on excess solar power.
Blockbid is another exchange that has provided a different opportunity for individuals who invested in virtual currencies. Unlike other exchanges that have primarily focused on Bitcoin and Ethereum, Blockbid allows trading of other altcoins. And this is a smart move considering altcoins are also gaining momentum from the popularity of Bitcoin.
These three startups have been able to take advantage not only of the demand for cryptocurrencies but also for the absence of laws to regulate virtual currencies.
Despite cryptocurrency being a relatively young industry with uncertainty to its future, a lot of startups can still take advantage of the current demand for virtual currencies. Given the recent upward trajectory of prices for Bitcoin along with other altcoins, a lot of investors are looking for huge profits.