Bitcoin price, relative to the fiat currency markets, is probably the most influential component of Bitcoin on any given day. Bitcoin price is among the most searched terms within the industry on any given day, and the media predicts the import and value of the digital currency based upon this specious metric. In 2014, Bitcoin had a very strong year in overall investment, but its worst year in Bitcoin price as a commodity, hurting annual events like Bitcoin Black Friday. This year, Bitcoin struck back, and so did Bitcoin Black Friday.
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Bitcoin Price Creates Bitcoin Value
Personally, I subscribe to the legendary left-brain Bitcoin orator Andreas Antonopoulos, and his theory on Bitcoin price and its true importance. He once said, “Comparing bitcoin’s value to a dollar is like comparing the Internet’s value to how many fax machines it replaces.” You can never fault such logic, but buying and selling decisions are rarely made so logically.
Historically, the market as a whole has swayed greatly by a simple metric we can all understand, if it is not wholly accurate in assessing value. Since Bitcoin’s yearly low of less than $180 USD back in January, the price has more than doubled, and this has brought back the merchants this holiday season.
DCE Brief spoke with Jon Holmquist, founder of BitcoinBlackFriday.com, to find out how the sales spectacular went, for the leading Black Friday website in the space. This season brought a new copycat website, BitcoinBlackFriday.info, showing the desirability of the brand. The copycat site sent people to affiliate link sites instead of the desired destinations and was quickly outed. No such problems for Jon and his site, which saw an explosion in actual merchant participation this year, which bottomed out at well under 150 merchants in 2014.
“Our goals this year were to better advertise the event to the Bitcoin community and to get 150 listed merchants,” Holmquist told DCE Brief. “We ended the event with about 200 merchants, so I think we did pretty well this year. The rising price always helps the sale. We had more traffic this year and I think our merchant had more sales.”
The price of a Bitcoin was actually higher in price at this time last year, but the mood of the market was far different, with the Mt. Gox bubble still enduring a merit correction last November. Losing over half the value from the start of 2014, the sales environment was not optimal. DCE Brief asked Holmqvist what the future holds for Bitcoin as a currency since the currency’s valuation is key to his business.
“I had no idea what it would become almost five years ago now when I first heard about it. I have zero idea where it will go in the next five years, the world is finally starting to understand some of the amazing things that can be done with Bitcoin, so I'm definitely excited to see where it will go.”
Top merchants presenting deals included Private Internet Access (lead sponsor), Trezor, BitQuick and Bees Brothers, who is said to have been the first merchant ever to accept Bitcoin directly as payment. Discounts were as much as 75% off, depending upon the retailer.
Going forward, BitcoinBlackFriday.com will look to globalize its merchant lineup and bring a more international flavor to future events. With a record-setting amount of venture capital coming into the Bitcoin space in 2015, and the halving of bitcoin’s currency production coming next summer, 2016 looks to be another year of increasing demand and higher market values. Bitcoin is now safely “in the black” for the year, and so was its leading holiday-sales website.