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Bitcoin growth slows

Bitcoin Conference Held In New York City
Bitcoin Conference Held In New York City
Photo by Andrew Burton/Getty Images

Bitcoin activities of bankruptcy and FBI arrests of key Bitcoin exchange owners have caused the price to drop below $500 at the end of March. Chamath Palihapitiya, one of the largest bitcoin owners, has changed his forecast on Bitcoin from 11.5 million in wallet downloads to 7.3 million for 2014 according to reports this morning on Coin Desk.

Palihapitiya posted on Twitter last evening his correlation between the numbers of wallet downloads and the price of Bitcoin. The former Facebook and AOL executive has reviewed the download postings of the major Coinbase, Blockchain and MultiBit wallets who have passed their million wallet download in 2014.

His VC group Social+Capital Partnership based in Palo Alto of which he is founder and managing director has reviewed the Bitcoin wallets statistics and has found that the production of Bitcoin has slowed and according to his view it will take a major idea to spur the demand for more supply of Bitcoin. He acknowledges in his comments on Twitter that the number of Bitcoin wallets is greater than the number of consumers at this time which translates to holding of current Bitcoin.

Vinny Lingham, CEO of Gyft has pointed out on Twitter the difference between the ratios of wallets greater than consumers to which Palihapitiya agreed in his Twitter post. Lingham on his website points out that Bitcoin is still evolutionary. Gfyt, the San Francisco based app provider announced at the end of March that it had added US retail big box Walmart to its merchant network. This will type of activity will drive the consumer activity to use bitcoin payment and help drive it out of the wallet holding status.

Palihapitiya is also the owner of Golden State Warriors NBA team and is moving toward accepting Bitcoin. He is also on the board of directors at SecondMarket, which launched an open-ended trust last year. Palihapitiya placed a comment on Twitter last January that he was figuring it out and checking it for the Warriors' tickets to accept bitcoin payment.

There is a ground swell of activity that is introducing Bitcoin into the payment system. Matt Luongo, CEO and co-founder of Coin For Coffee has placed a process to utilize Starbucks’ existing card system. A Starbucks customer can go to the Coin For Coffee website and choose how much they want to upload in dollars.

Once the user’s email address has been confirmed the system will produce a bitcoin address to deposit money. Coin For Coffee produces a barcode and the Starbucks’ customer scans it with the barista at the register the same as any other card scan transaction. Within thirty minutes any remaining bitcoin not used for the payment will be returned to the owner.

At the heart of trading New York City will have a first in Union Square this April 26 with a Bitcoin picnic under the startup who has decided to take on Craig’s list and eBay. The idea is to focus on a local market and provide buying opportunity with Bitcoin. For the larger payments there will be an escrow service and promises refunds to buyers who decide to return an item.

The co-founders, Yale graduates Tom Tang, YJ Dang and Angel Beale of Corkket, find this local approach better than eBay and more trustworthy than Craigslist. It will be the first online person-to-person marketplace with bitcoin payment processing. Each of the bitcoin transactions has a custom-generated address. Once Corkket receives funds online a QR code is sent via email to the buyer, who prints it out and exchanges it for goods purchased at the picnic. The seller can scan the QR code and get paid.

Beale stated on Twitter, ‘As longtime bitcoin enthusiasts, we know bitcoin is ideally suited as a payment method for privacy and security-conscious users.’ This business enterprise is the type of growth activity that will increase Bitcoin as a payment system and open Bitcoin wallets to release consumer.

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