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> But despite the failure of some Bitcoin-related sites and new regulatory challenges, more than $250 million has been invested in Bitcoin companies, most of that in the last 12 months, according to Wedbush Securities, a financial services firm.

Interestingly, there's a good chance that the sum of the valuations given to these Bitcoin companies in the past year is equal to a not insignificant percentage of the total value of all the Bitcoin in circulation[1].

Xapo[2] and Coinbase[3] alone were both reportedly valued at more than $100 million in their last rounds, and I wouldn't be surprised if Blockchain received a similar valuation.

From a technical perspective, the current Bitcoin chart[4] doesn't look good, and hasn't for a while[5]. If there isn't a sustained recovery, the sum of the valuations investors have given Bitcoin-related startups could one day exceed the value of all the Bitcoin in circulation.

[1] https://blockchain.info/charts/market-cap

[2] http://blogs.wsj.com/digits/2014/07/08/bitcoin-startup-xapo-...

[3] http://blogs.wsj.com/digits/2013/12/12/andreessen-boosts-bit...

[4] https://blockchain.info/charts/market-price

[5] https://news.ycombinator.com/item?id=7500000



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