Bitcoin is dead? I'm afraid it's just a stupid joke

According to Wired, Bitcoin was going to change the world, but then things changed. Now, it is going to do it again.

This argument is familiar to everyone. Back in 2013, almost everyone believed that Bitcoin would be the next big thing. Soon after, the world's largest Bitcoin exchange, Mt. Gox, suddenly collapsed, and everyone began to doubt that Bitcoin was dead. Experts tend to believe that Bitcoin will either succeed or fail. But the reality is slightly different. Although Mt. Gox and the online drug bazaar Silk Road, which relied on Bitcoin for its survival, have experienced many ups and downs, digital currency has never left. Today, it has ushered in an unprecedented boom, and some people say that this year will be the first year for it to become a mainstream currency.

Bitcoin has been facing regulatory issues and slowing growth due to the lack of a central government and the fact that it relies solely on a vast network of computers around the world. The most prominent problem is in the United States . But with regulators paving the way in New York, these issues are gradually being alleviated. Ultimately, for consumers, international business dealings, or retail e-commerce, Bitcoin is still the easiest, most convenient and cost-effective way to transfer money.

The current price of Bitcoin is around 4, far below the high of 216 at the end of 2013. But the price is not the most important thing. What is important is whether people are using Bitcoin. The answer is yes, people's enthusiasm for Bitcoin is increasing. Take a look at the curve chart below, which shows the daily transaction volume of Bitcoin. As can be seen from the chart, the frequency of people using Bitcoin has reached a record high, and the average daily transaction volume in December has more than doubled compared with the same period last year .

Bitcoin daily transaction volume

But most people's use of Bitcoin is currently considered a speculative behavior, and everyone believes that the price of Bitcoin will rise. As Bitcoin observer Tim Swanson explained, many transactions may simply be users transferring money for some purpose. But the world's largest Bitcoin exchange - San Francisco-based Coinbase - operates 2.8 million Bitcoin wallets worldwide and provides Bitcoin payment support for major retailers Dell and Overstock.com. According to the agency's data, about 20% of online activities are Bitcoin payment businesses or currency-related businesses. Although this proportion seems small, it is significantly higher than in previous years and is still rising . "Things will become clearer and move in the right direction," said Adam White, vice president of business development and strategy at Coinbase.

Bitcoin has again gained widespread attention in recent months after it was shown that the technology at the heart of the digital currency, blockchain, could also be used to reshape the trading of stocks and other financial securities. Blockchain technology is essentially a database that can span multiple independent computers. The technology is primarily used to monitor transactions in bitcoin funds. But it can monitor anything of value, including stocks, bonds, futures, and even real estate and private cars. Several companies, including the company that oversees Nasdaq stock trading and online retailer Overstock.com, are building systems that can use blockchain technology. However, this does not rule out the use of bitcoin as a currency.

In September, several big names in finance and banking invested in Bitcoin startup Chain, including Nasdaq, Citi Ventures, Capital One Financial, and Visa. CEO Adam Ludwin said all the investors are business clients or potential business clients. In other words, they want Chain's support in building Bitcoin technology. Some investors, like Nasdaq, see Bitcoin as a way to trade stocks or other financial securities .

“We have built blockchain technology and are working with our partners to advance it, and it can be used for many different types of assets,” he said. “Blockchain technology is not only going to penetrate securities trading, but also currency trading. What people foresee is a network platform that can handle all currency transactions and all types of financial instruments.”

Chain isn’t the only company promoting digital currencies. For example, Coinbase just launched the nation’s first Bitcoin debit card, which will help push digital currencies into the mainstream in many ways. According to the company, more than 7,500 people have signed up since it launched in late December. And they’ve spent more than $50,000 worth of Bitcoin using the plastic card.

It may sound trivial, but anywhere you can use Visa, you can use Coinbase debit cards to spend Bitcoin. The hope is that this will encourage more people to spend Bitcoin, rather than just speculating on it . If this is achieved, more and more businesses will abandon Visa and accept Bitcoin. After all, Bitcoin is much cheaper than high credit card transaction fees. As more and more businesses join in, there will be a circular effect.

According to Adam White of Coinbase, 2015 was the year that blockchain crossed over into the digital currency space. Many observers see this as the “pivot” for Bitcoin, where its true purpose began to move away from the online currency space. White believes that 2016 will be the year academics realize that digital currencies can still change the world.

“We’ve come full circle to Bitcoin,” he said. “In 2015, a lot of financial institutions, banks, thought leaders were saying, ‘It’s not Bitcoin, it’s blockchain.’ That was a mistake.”