Bitcoin, blockchain bring in $290M in investments in 2016

Bitcoin companies and blockchain technologies have brought in a total of $290 million in venture capital investments, funding more than 30 startups in the industry in the first six months of 2016, according to a study by Juniper Research.

Circle, a social payment provider, Blockstream, a sidechain developer and Digital Asset holdings, a distributed ledger provider, have acquired more than a third of the total investments, according to the study. The study examines the current potential of blockchain and bitcoin technologies, such as remittances. Migrant workers can more easily send money home through blockchain powered remittances that avoid some of the heavy fines of remittance companies.

Blockchain technology is currently being used for identity and assets management as well as smart contracts. The study, however,  cautions that any bugs and flaws of the blockchain powered smart contracts would be visible to everyone. A third party was able to exploit a flaw in the Decentralized Autonomous Organization to steal $80 million of cryptocurrency in June.

“While blockchain technology offers the potential for increased speed, transparency and security across an array of verticals, there has to be rigorous and robust roadtesting in each unique use case before any decision is taken,” Windson Holden said in the study.

The study is available here for download.

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