As initially discussed in Part 1 of this series, bitcoin’s exchange rate has garnered significant attention for its recent climb, but far less visible is the dramatic growth in the infrastructure underlying bitcoin economy itself. In continuing with the theme of Part 1, this report will look at the economic evolution behind bitcoin’s growth since the last time exchange rates climbed this dramatically.
Adoption In the beginning of this year, the notion of a business accepting payments in bitcoin – particularly at a physical store – was relatively unheard of. When bar/nightclub EVR (co-owned by Charlie Shrem of BitInstant) in New York began accepting bitcoin in April it made national headlines as a unique phenomenon.
Since then, thousands of internet and brick-and-mortar merchants have adopted the cheaper, faster payment technology. Coinmap.org and usebitcoins.info tracks physical locations that accept bitcoin payment, with the total figure approaching 1,000 listed merchant locations. Even if the store itself isn’t set up to take bitcoin, a number of services have enabled people to spend the…
The post Familiar Price Gains, Updated Infrastructure: A Look at the Bitcoin Economy (Part 2) appeared first on The Genesis Block.