Virtual Currencies and Bitcon: Crossing to the Physical Chasm
- Date:July 25, 2013
- Author(s):
- Nick Holland
- Report Details: 27 pages, 14 graphics
- Research Topic(s):
- Tech & Infrastructure
- PAID CONTENT
Overview
Virtual currency has evolved far past its humble beginnings as an in-game currency. The more than 47 million adult virtual currency users purchased $4.65 billion worth of virtual currency in 2012, and spend on virtual currencies is expected to more than double in 2013. Virtual currencies are driving payments innovation and investment, but as they gain ascendency they are also facing increased scrutiny from government regulatory, policy, and tax authorities. This report assesses the transition of virtual currencies from the digital world to the physical, specifically focusing on the shift from simple, closed-loop virtual currencies to bidirectional virtual currencies used for real-world fiat exchange. This report will further discuss the dramatic market changes that have altered global virtual currency initiatives and will provide in-depth analysis of the unique characteristics of virtual currency users. The report also provides a sizing and forecast for the 2011–2013 U.S. virtual currency market.
Primary Questions:
- What recent events are changing the virtual currency market?
- What new regulations might affect virtual currencies?
- How prevalent are virtual currencies?
- Who uses virtual currencies and for what purpose are they used?
- Will virtual currencies become a mainstream payment option in the near future?
Companies Mentioned
Activision Blizzard
InComm/Zeevex
Amazon
Litecoin
American Express
Mt.Gox
Bank of America
OpenCoin
Bitcoin
PayPal
Discover
Ripple
European Central Bank
Second Life
Expensify
Zynga
Visa/PlaySpan
Hub Culture
Methodology
- The consumer data in this report is based on information from a Javelin survey of a random‐sample panel of 3,217 respondents collected online during October 2012.
Learn More About This Report & Javelin
Related content
Surveying the Payments Consultants: The Services Overview
The next wave of payment modernization is rolling in. Technology has emerged to power more advanced payment solutions, including real-time payments rails and open banking. It follo...
FedNow and Technology Vendors: Setting the Foundation for Future Payments
This Javelin Strategy & Research report looks at the Federal Reserve's FedNow service, but from the perspective of choosing the right technology vendor. FedNow offers a foundation ...
Coexisting in Payments: How Middleware Forges Alliances Among Smaller FIs, Core Providers, and Fintechs
Small and medium-sized banks, short on the resources to rebuild their infrastructure and long frustrated by the slow pace of innovation by some core banking service providers, are ...
Make informed decisions in a digital financial world