Bitcoin world shrinks as startups scale back at CES 2016

The biggest event on the tech calendar this year has concluded without any major announcements from companies in the bitcoin or blockchain industry.

    The 2016 Consumer Electronics Show (CES) in Las Vegas last week saw a notable drop in attendance from industry startups, with 2015 attendees including Blockchain, BitPay, Circle and Kraken skipping the event themselves.

    Furthermore, the haphazard lineup of attendees included many lesser-known companies such as BitCircle, BitRouter, Bits Limited, HyprKey and Ledger, and only Ledger, the last in the lineup, had a booth showcasing its technology and an announcement of its new flagship Bitcoin hardware wallet, the Ledger Blue.

     During the conference, Ledger co-founder Thomas France told CoinDesk that one detail he noticed during the event was the absence of many of his peers.

     “We are the only bitcoin startup that participated this year. This year, two bitcoin companies participated, but no other bitcoin products,” France said in an interview last week.

     The developments stand in stark contrast to 2015, when 10 startups in the industry launched “World Bitcoin” in a joint effort, led by bitcoin payment processor BitPay, to showcase emerging technologies and then-new products such as the Copay wallet.

     In a statement, BitPay largely dismissed the absence, claiming that attending the event simply didn’t fit with its current strategy.

Marketing executive James Walpole told CoinDesk:

     “Right now, we are focusing our energy on growing transaction volume and improving the quality of the BitPay platform for our customers. Attending the show this year is not a priority.”

     The World of Bitcoin is the latest educational service to voluntarily disband after it ended its sponsorship of the college football playoff St. Petersburg Bowl last year.

Unknown cause

     When reached for comment, most bitcoin startups did not go into further depth to provide their own reasons for not participating.

     Blockchain explained the situation as a scheduling conflict, while firms like Kraken and Circle simply reported that they had not received an invitation.

     David Raviv, vice president of corporate development at HyprKey, speculated that the funding environment in the bitcoin community may have affected the number of participants.

     “It’s expensive to go to these events. You come in as a startup and it costs you $60,000 to $70,000. So depending on where you are in your funding cycle, you might not see it as a priority,” Raviv said.

     As investor interest shifts to blockchain use cases, he suggested that some established digital currency companies may be adopting a strategy to save money due to funding concerns.

     Raviv also highlighted that HyprKey has an expanding product suite, and that it sees markets for its biometric solutions in a variety of industries, including home automation, healthcare, and clothing.

     Ledger even wanted to use the Consumer Electronics Show to position its products for more mainstream customers, so it booked a booth for the cybersecurity department and officially launched the Ledger Blue, promoting it as a "confidential and secure device."

     Still, France said the event was fruitful for startups, which saw interest from some large financial firms.

     “Some of us come from banks, some come from the innovation world. Blockchain is what secures Bitcoin. You always need some trusted hardware,” he said.

Dialogue blockchain

     Industry insiders have given too much attention to the Digital Currency Forum. The CES event is a masterpiece of the digital age and is sponsored by Mastercard.

     There, many familiar faces such as Halsey Minor, chairman of Uphold, Michael Dunworth, CEO of SnapCard, Perianne Boring, president of digital commerce at the Chamber of Commerce, and Brock Pierc, managing partner of Blockchain Capital, participated in the digital payment talks.

     While all featured industry representatives, only one panel addressed the industry directly, “Virtual Currency (Blockchain 101)”, which covered how the technology is being embraced by financial institutions.