Blockchain Blog

Bitcoin News for the week of 1/25/16

Welcome to our weekly bitcoin news recap, where we cover top headlines and stories in the world of bitcoin each week. It’s been another exciting week in bitcoin! This week CoinDesk released their annual State of Bitcoin report, which has some valuable insights into bitcoin and blockchain that we touch on below. We also saw some work toward boosting bitcoin in different ways, and merchant and user adoption shows no signs of slowing, as unique use-cases for bitcoin are ongoing in various regions of the world.

The State of Bitcoin

![Chart via CoinDesk.com](https://blog.blockchain.com/content/images/2016/01/CoinDesk-State-of-Bitcoin-Jan-2016.jpg)
Chart via CoinDesk.com
[State of Bitcoin and Blockchain 2016: Blockchain Hits Critical Mass](http://www.coindesk.com/state-of-bitcoin-blockchain-2016/)

CoinDesk’s 2016 State of Bitcoin and Blockchain report summarizes key trends, data and events from 2015, details findings and includes predictions on what to expect in 2016. The major story from 2015 is undoubtedly the increasing focus on bitcoin’s underlying blockchain technology. Many parties, from government authorities to financial institutions, began to examine potential applications of the blockchain for securities transaction settlement and other use cases.

Susan Athey, Economics of Technology Professor at Stanford GSB, predicts that although we may not know yet exactly how things [in finance] will change in 2016, we will see change in basic financial infrastructure so that money can move more easily, and we’ll all ultimately look to the popularization of Bitcoin as the catalyst that got the industry and governments and entrepreneurs moving quickly. Bitcoin isn’t just disrupting fintech, but also what is commonly known as the Internet of Things (IoT). In an IoT network, the blockchain can keep an immutable record of the history of smart devices. This feature enables the autonomous functioning of smart devices without the need for centralized authority. As a result, the blockchain opens the door to a series of IoT scenarios that were remarkably difficult, or even impossible to implement without it.

Boosting bitcoin

Why do I get the feeling that the best hedge against a Sanders or Trump nomination may be buying bitcoin?

— ashton kutcher (@aplusk) January 29, 2016

Actor and investor, Ashton Kutcher, is a fan of bitcoin

Ashton Kutcher or as he is known on Twitter as aplusk, tweeted “Why do I get the feeling that the best hedge against a Sanders or Trump nomination may be buying bitcoin?” Apparently he is a fan of the digital currency, implying that bitcoin is the safest way to invest your money no matter which presidential nominee is elected.

Related to boosting bitcoin, Bitcoin Core developer Gavin Andresen has initiated a newly written BIP proposal on Github concerning a block size increase, proposing a 2MB increase, doubling current bitcoin transaction capacity. In addition BitPay is adding the ability to have full-nodes added onto the bitcoin network by running a full node in the cloud using Microsoft’s Azure cloud service. And Deloitte has recently published a report that takes a look at the potential uses of blockchain technology while arguing that its acceptance will accelerate adoption.

Merchant and user adoption

![Illustration by Cointelegraph.com ](https://blog.blockchain.com/content/images/2016/01/bitcoin-tesla.jpg)
Illustration by Cointelegraph.com
[Tesla And Other Cars Sold For Bitcoin](http://cointelegraph.com/news/tesla-bitcoin-cars-europe)

The biggest Bitcoin car sale in European history was made this past week. This happened thanks to the Auto Outlet Helsinki Oy who sold a Tesla Model S P85+ for an amount in bitcoin equivalent to $151,000 USD.

Although this maybe an extreme case of how people are using bitcoin, in other places of the world such as Indonesia, bitcoin adoption may hinge on something as simple as a Blackberry wallet. And according to Bitso CEO Pablo Gonzalez, Latin America is waking up to bitcoin. And in the United States, bitcoin continues to flourish, as we see in our merchant spotlight series, which most recently we had the opportunity to speak with 5 Diamond Delicacies.

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