Porter's Five Forces Model

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Porter's Five Forces Model by Mind Map: Porter's Five Forces Model

1. Competitive rivalry:

1.1. Although it has some competition like ‘Monorum’ and ‘Eurotherm’, none of them stand up to Bitcoin’s popularity, net worth, and overall value. Some allege that ‘Bitcoin’ isn’t as secretive as it could be, so Monorum is apparently an even darker and more underground cryptocurrency market than Bitcoin. .

1.2. Monorum is definitely a large competitor and could drive Bitcoin out of business because it sets out to do the one thing Bitcoin does but better. Also, Bitcoin’s system isn’t patented and it’s open source so anyone could use their system for reference and copy it

1.3. Bitcoin is currently the world leader in it’s industry - which is cryptocurrency services.

2. Bargaining power of suppliers:

2.1. Bitcoin isn’t supplied by anyone. It’s also a flat currency so it isn’t backed by anything except for the place it has in the market. So, it’s dependant on the stock market and when the stock market is doing well, Bitcoin does well, and vice-versa.

3. Bargaining power of customers:

3.1. Consumer power is moderate for Bitcoin; BTC transactions are dependant on consumer companies to overlook their transactions, but at the same time there aren’t a lot of competitors with something similar to Bitcoin and barely any services offer anonymous fund transfers.

4. Threat of new entrants:

4.1. It is very easy because BTC is opensource and not patented, but it is still difficult for anyone to join the marketplace and compete with what BTC does unless their innovate the concept and manage to come up with an even more efficient and anonymous system than Bitcoin. Otherwise Bitcoin is definitely going to continue to be the world leader in cryptocurrency transfer services.

5. Threat of substitute products

5.1. is high because their system is not patented and if someone were to invest a lot of money into backing their own Bitcoin and advertising it, they could easily overcome Bitcoin.