The five major economies of the Bitcoin ecosystem

When most people describe Bitcoin, they focus on its price and its multi-billion dollar market cap. However, the Bitcoin ecosystem is much larger than most people realize.

Since its inception, Bitcoin has attracted a large number of people to work on its protocol. These include miners, software developers, startups, artists and authors, and many more groups who contribute to this infrastructure every day.

The Five Pillars of the Bitcoin Ecosystem

1. Miners

Bitcoin has created a growing industry - mining. Mining is a daily activity involving both individual and organizational miners who are also tasked with protecting the Bitcoin network. In addition, there are companies that produce mining equipment and ASIC chips, and competition is growing as more companies enter the field. The total computing power of mining has been growing exponentially over the years as technology has advanced. Mining is still a niche market due to its technical aspects, but it is expected to grow significantly in the future.

2. Software Developer

Even in industries outside of Bitcoin, software developers are in high demand. As cryptocurrencies become more popular, programmers working on blockchain and digital currency technology become more popular. Many financial companies and promising startups are looking for software developers to help build blockchain protocols. If you search for jobs in this industry on job search sites such as Monster, you will find that the most prominent positions are blockchain programmers who understand Bitcoin. The Bitcoin developer economy is likely to increase significantly over time as more and more jobs of this type are needed.

3. Cryptocurrency and blockchain startups

As Bitcoin has grown, many new companies have emerged that aim to take advantage of this technology. Over the past few years, many startups have built unique ideas. Some companies focus on Bitcoin remittances, some choose the direction of payment processors, some choose bill payment solutions, ATM manufacturers, hardware production, and many more types of businesses. Many startups have created business models that did not exist before Bitcoin. Exchanges, trading markets, distributed autonomous organizations, prediction markets, etc., all of which are truly peer-to-peer and decentralized. There will definitely be more and more startups focusing on cryptocurrency and blockchain, and many of them will fail, but some will be very successful.

4. Art, Internet Marketing and Writing

The Bitcoin economy has also created a market for graphic artists, marketers, and writers. The Bitcoin industry needs people to create text, advertising, and images to help spread and adopt it. Since the creation of Bitcoin, many graphic artists and writers have spread the word about digital currency and blockchain in news media or blogs in their own ways.

5. More occupations, and a focus on safety

Other professions that fill the Bitcoin economy include consultants, accountants, human resources, risk managers, etc. For example, people often turn to consultants to help them master these emerging technologies.

Another important growth market for the Bitcoin ecosystem is security. Cybersecurity and innovative methods to protect digital assets will always be necessary. Events such as hacking and ransomware will continue to threaten the online security field. This has encouraged more individuals and groups to work on improving multi-verification technologies, such as biometrics, threshold signatures and other highly secure conceptual technologies. The Bitcoin protocol has created a powerful wealth transfer system that does not require the involvement of a third party, but improvements in security solutions will continue to be needed.

Bitcoin is evolving faster than we thought

These important microeconomic systems are tethered to the Bitcoin environment. As Bitcoin continues to gain mainstream adoption and reaches critical mass, these smaller economies will expand indefinitely. In addition, the Bitcoin economy should give individuals and groups more opportunities to participate.

Bitcoin’s early stages of growth are reminiscent of the birth of the internet age. Bitcoin’s changes to society may become more subtle over time, but watching these micro-economies proliferate shows that things are changing quickly.