

Pantera Capital, a Bitcoin investment fund, released their monthly Bitcoin letter (PDF) this week. The report was full of insightful analysis, and you should definitely check it out, but I thought the above graph was the most interesting part. As you can see, alternative digital currencies took a sizeable chunk of investments away from Bitcoin starting in December and January, that Bitcoin has since gained back. That being said, Bitcoin has far from "won," with the digital currency space more competitive than ever.



Pantera also released projections of future Bitcoin price (PDF) if it is used as a decentralized global store of value. As you can see below, if Bitcoin were to completely replace Gold (which it won't) the price per Bitcoin would be $550,954 USD. Although some of the projections seem outlandish, they put in perspective how small the Bitcoin market cap currently is (~ $5bn USD), and how much more it could potentially grow.