- Fitch analyzes bitcoin again
- Observes greater corporate acceptance
Ratings agency Fitch released a statement on Tuesday with regard to bitcoin acceptance in the corporate playground.
The agency says they have observed “great corporate acceptance” of the digital currency in its form as a payment mechanism (to which many enthusiasts would say, “duh!”. The observation comes in the wake of DISH Network, Newegg, Expedia, and 1-800-FLOWERS.com announcing their adoption of the digital currency.
In addition, Fitch points to the publishing of the ‘Coin Pocket’ app to the iOS App Store following Apple’s change of heart when it comes to approving bitcoin-transmitting software. Following the reveal of their latest iOS mobile operating system, the Cupertino, California-based company amended their App Store rules to allow “apps [that] may facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions.”
Companies like DISH, Expedia, and Newegg generate meaningful revenue and an increase in payment for products and services via Bitcoin could boost the payment system.
Despite bitcoin’s growth trend, Fitch says that bitcoin and the ecosystem surrounding it is still very much small.
However, as we’ve stated previously, Bitcoin is still small relative to both major payment processors and global currencies despite increases in its acceptance as a payment system. Bitcoin’s price and transaction volume have climbed since mid-May, reversing downward trends earlier in the year. The price of Bitcoin rose from $489 on May 21 to $639 on June 30. As a result of this price increase, the average daily transaction volume rose from $47 million per day in May to $61 million per day in June, despite a decline in the average number of daily transactions.
This isn’t the first time Fitch has talked about bitcoin. Back in early April, the agency analyzed bitcoin in a commentary, outlining again at several points bitcoin’s small size compared to traditional financial systems.
For more information on Fitch’s reports on bitcoin, you can take a peak at their Sizing Up Bitcoin report at FitchRatings.com. Be advised that registration is required.
A bitcoin enthusiast residing in Massachusetts, Eric got his news-writing start on his own technology blog from 2009-2011. He's also written for PetaPixel - a prominent photography blog. By day, he works in IT and has worked as a wire photographer for Retna.