Over the past few years, Bitcoin has grown. What started out as an isolated internet currency, only used by geeks has become a real method of payment. Pizzas, piano lessons, haircuts, it’s possible to find a merchant that accepts Bitcoin for almost anything. 2013 However saw a new trend in the use of the cryptocurrency. Complete enterprises were being bought and paid for with Bitcoins.
Analysts reported to American channel CNBC that they expect more frequent usage of the coin in the future when it comes to selling or buying companies. The first major deal was closed in July 2013, when gaming company Satoshi Dice was sold to an unknown party for 126.315 Bitcoins. When we compare that number to the value of Bitcoin in that particular month, that accounts for a total amount of 10 million dollars. This shows that Bitcoins are usable for every purchase, be it a pizza or a million dollar business deal.
The next take-over came in December 2013, when the well-known Blockchain.info decided to buy Zeroblock. Pricetag for this major deal is unknown, but experts agree that this also was a million dollar sale. Blockchain is a famous company in the world of cryptocurrencies. They are the biggest supplier of online digital wallets where you can store your coins. Zeroblock, on the other hand, was a smaller company. They developed an app that shows Bitcoin’s value on the different exchanges, as well as the latest news regarding the currency.
Because both companies are working with Bitcoins every day, it’s their main trade, it’s not surprising that they financed the merging with Bitcoins. One of Zeroblock’s founders told The Wall Street Journal that the whole deal was made in a mere twenty seconds. An astonishingly fast agreement, considering that most deals of this magnitude take months to succeed. It’s not only about the meetings held in order to reach an agreement, the transfer of such a large amount of money takes time, as well. And once again, this is where Bitcoin shines. The whole transfer was done without any hassle, a matter of a few hours and a gentleman’s handshake.
Obviously, these advantages carry a few disadvantages with them, as well. Companies are subject to taxes, and in order to comply with the law, Zeroblock had to exchange some of their profits in dollars. This has several consequences that aren’t necessarily Bitcoin’s fault, but it sure makes large deals harder than they should or could be. Another important drawback is the dreaded need for regulation. Common people may like the fact that Bitcoin operates in the wild west, but large companies won’t think about using Bitcoin in big business trades when there’s no legal framework surrounding the cryptocurrency. On top of that, the trades need to be expressed in a paper currency, for taxing purposes. Bitcoin’s value on the exchanges proves to be a bumpy ride sometimes and most companies like a stable coin more.
Despite bad publicity like Mt.Gox’s collapse, the Bitcoin market is still moving in full force. “People are trying to find their spot in this relatively new market, companies are constantly looking for interesting opportunities.”, says Blockchain CEO Nic Carey. Earlier this month Blockchain bought RTBTC, a big Bitcoin exchange. On top of that, in a few weeks, Blockchain claims to be able to announce the biggest takeover ever in the history of Bitcoin. Blockchain makes hundreds of thousand of dollars every month, mostly earned by advertising.
Last modified: March 12, 2014 22:33 UTC