The Singapore-based carpooling app, Ryde, has become the first app of its kind to accept internal Bitcoin purchases, signaling consumer confidence, and vendor acceptance.
As of June 22, Ryde customers can store and convert Bitcoin into their purchase options with no transaction fees, making Ryde the first-ever carpooling app to accept Bitcoin directly.
Citing an increase in transaction volume, Ryde CEO and founder Terence Zou, explained that the incorporation of Bitcoin as a form of payment was the next logical step for the company.
Singapore is an excellent addition to the Bitcoin transaction market, currently standing with the 3rd largest amount of Bitcoin exchanges in the world (ahead of the United States).
Additionally, Zou cited the COVID-19 pandemic as an accelerant to the acceptance of Bitcoin as a form of payment; for safety concerns, cashless payments became all the more desirable.
Incorporating Bitcoin payments has been an effort of the company since 2019, when 60% of Singaporeans still preferred cash-based transactions.
The timing of integration couldn’t be more perfect; the Singaporean government introduced the 2019 Payment Services Act. The Payment Services Act allowed for prominent cryptocurrency exchanges, such as Coinbase, to operate in Singapore without a license.
The carpooling app founder was optimistic about this development, believing this creates a potential for the growth of fintech companies and the expansion of cryptocurrency accessibility. The precedent of legal and economic acceptance of Bitcoin is certainly present within the Singaporean market.
Many crypto investors may remember the infamous Bitcoin crash of late 2017, which coincided with the introduction of Bitcoin Cash into the crypto market.
Over the course of 11 months, Bitcoin’s value depreciated by a devastating 81%.
Even today, Bitcoin has only managed to capture even half of its peak value on a handful of occasions.
Bitcoin’s Rising Investor Sentiment and Portfolio Performance
If we measure Bitcoin’s trading volume, we can find how interest in the cryptocurrency will increase or stabilize the current price trend.
Measuring Bitcoin’s volume across the 2018-2020 time window, we find an interesting development in the traded volume of 2020.
Bitcoin’s trading volume has exhibited significant volume and increased volatility; this coincides with Bitcoin’s relative price stabilization since January.
What this tells us is that investor confidence is driving a positive change in the Bitcoin market price.
Taking a more detailed look at the average daily volume of Bitcoin, we can see a high equity volume in the middle of any particular month. Contrast this to a low equity volume at the beginning and end of each month.
This equity volume reflects an overall interest in trading Bitcoin from month to month, indicating a promising movement of Bitcoin price overall.
Investors have warmed up to the investment of Bitcoin in their portfolios, so vendors should accommodate the currency for their respective companies’ operations.
We can also look at the value at risk of a bitcoin portfolio to determine how big the losses an investment in Bitcoin could incur.
Looking at the distribution of Bitcoin returns from 2013 to today, we can predict the largest measurable loss using a 99% confidence interval.
Our calculated Value at Risk variable at the 99% confidence interval was around (negative) -11.2 %.
There is a less than 1% chance of losing 11.2% of your investment.
For a considerably volatile commodity, it is impressive that the historical aggregate only shows 11.2% loss of investment in less than 1% of cases; all other losses would be an even lower percentage.
Overall, Ryde Singapore blazes a trail forward for fintech businesses around the globe.
The integration of Bitcoin as a method of purchase by Ryde not only reflects Singaporean demand but a recognition of strong Bitcoin sentiment and impressive portfolio performance.