As the tales of nearly every entrepreneur and enthusiast illustrate, it’s not hard to become fascinated with bitcoin and digital currency.
Usually, bitcoin believers tell a familiar story about how they discovered cryptocurrency, including the moment of realization that lead them to become entirely engrossed in its untapped potential. Still, while there are those who seek to capitalize by building and innovating in the bitcoin ecosystem, others aim to use their understanding to benefit financially from what remains an emerging market.
For many, bitcoin’s price is inseparable from bitcoin the technology. According to CoinDesk’s State of Bitcoin Q2 report, bitcoin’s price is a popular subject. For example, four of the top 10 most-read CoinDesk stories in the second quarter of 2014 related to bitcoin’s price.
The popularity of stories on price suggests that many bitcoin enthusiasts are seeking to better understand the market as investors. But, in order to do that, they need tools that go beyond the headlines to indicate the underlying health of the market.
“[Coinalytics] wanted to answer this simple question, basically. Why is the price going up, and why is the price going down?”
That event encourages participants to try new things. During the early stages of the competition Federici and his two teammates realized that bitcoin was interesting, but the timing wasn’t right for a project aimed at the masses.
“Looking the numbers at the time, having a consumer product – there wasn’t enough traction.”
The early Coinalytics idea was to take a number of data sources that were freely available and make them more useful for analysis and application.
The Startup Weekend team built a mock-up and a running prototype within 48 hours that collected data and displayed price. Their approach and final result netted the project an award for “Most Innovative Idea” at the competition.
From idea to action
Inspired by his success in Berlin, Federici decided to forgo his MBA studies in Europe to head to Silicon Valley. While attending various bitcoin meetups in the area, he met 500 Startups’ partner Sean Percival.
At the time, Percival had recently announced 500 Startups’ next batch would include bitcoin startups, and that he would be mentoring them. Coinalytics was eventually accepted into 500 Startups’ Batch 9, which included five bitcoin companies in total.
Federici told CoinDesk that the startup accelerator allowed Coinalytics to build a strong product, saying:
“We started working on the analytics and gathering all the data that’s around. We’ve spent a lot of time on the back end, on the infrastructure to make sure it is easy for us to add new data streams.”
By 500 Startups Demo Day in July, Coinalytics had developed a dashboard as well as infrastructure to let users add new types of data to its platform.
- ^ bitcoin’s price (www.coindesk.com)
- ^ CoinDesk’s State of Bitcoin Q2 report (www.coindesk.com)
- ^ Coinalytics (coinalytics.co)
- ^ Startup Weekend (berlin.startupweekend.org)
- ^ Most Innovative Idea (berlin.startupweekend.org)
- ^ 500 Startups’ next batch would include bitcoin startups (www.coindesk.com)
- ^ five bitcoin companies in total (www.coindesk.com)
- ^ Bill Gleim (angel.co)
- ^ bitcoin prices on its well-known Bloomberg terminals (www.coindesk.com)
- ^ $2.8m from Andreesen Horowitz, Barry Silbert and others (www.coindesk.com)
- ^ available on its website (coinalytics.co)
- ^ Coinalytics (coinalytics.co)
- ^ bloomberg (www.coindesk.com)
- ^ Coinalytics (www.coindesk.com)