It has been reported by the AFP (Agence France-Presse) that use of crypto-currencies such as bitcoin is now illegal in Bangladesh and punishable by up to 12 years in prison.
This announcement comes on the back of a surge in interest in the currency. It comes on the back of the recent formation of the Bangladeshi chapter of the bitcoin foundation.
Bangladesh is the latest of several developing nations to completely ban or restrict the use of bitcoins. Bolivia and Ecuador in South America have also banned bitcoins (although Ecuador is apparently producing it’s own digital currency.)
In my opinion these extreme steps just validate the fact that bitcoin is indeed a disruptive technology with the real potential for change. Otherwise there would not be the need to legislate against it.
At the dizzying heights of this time last year – gold and bitcoins if only for a short while were at parity. Since then bitcoin has gone on into what seems like long term decline – if its price is an indication of its popularity. Bitcoin took several blows in the last year when China took steps to distance its banking system from the currency. Then the silk road got shut down. There were several major bitcoin thefts. Then there was all that unpleasant business involving MT Gox. However, A little look at the statistics shows quite a different story for the future of the digital crypto-currency.
The following data has been extracted from the blockchain.info website and gives you some different picture of what is going on here.
Firstly lets look at overall market capitalization. It still stands at slightly less than half of what it was – but does appear to have levelled off. This appears to me to be a natural correction to the bubble that was created by the frenzy surrounding bitcoin take up in China and media coverage last year.
The total number of daily transaction seems to show relatively stable and slow growth.
If you exclude popular addresses it shows even more stable positive growth.
The amount of unique bitcoin addressees also shows steady growth.
Transactions in USD seem to have remained relatively stable.
The price as we know hasn’t done anything positive for a long time.
The difficulty of making new bitcoins continues to grow ever more difficult.
The size of the blockchain grows very steadily. Doubling in one year. However, the growth seems linear and shouldn’t exceed the rate at which average HDD seem to grow anytime.
Do you have any thoughts regarding where bitcoin prices might head or what the underlying reasons behind the price decline are?
Richard Branson talks about space travel and bitcoins.
I’m really sorry everyone that I stopped maintaining this site. I had a bereavement in the family in early December and my life took a few unexpected turns which resulted in me not being able to give this site the time it deserved.
Well, I’m happy to say I am back and that you can expect a lot more from me to come.