The recent decline in cryptocurrency prices seems to have gathered enormous attention in the headlines this past week. With the price of Bitcoin down nearly 25% in the past week, and nearly 75% since December 2017, investors who have bought in since then are feeling worried the “party” is over.
Don’t believe the mainstream hype, this isn’t a party.
This is a multi billion-dollar industry that in the past decade, has created tens of thousands of new companies’ arounds the world, along with hundreds of thousands of new jobs, spurring a frenzy of economic activity and driving innovation.
Top software engineers, programmers, and scientists from around the world are being recruited, and have left lucrative positions in traditional industries to work on and develop blockchain technologies.
These professionals are leaving their careers behind to help build the most disruptive technology since the world wide web. Amidst all negativity, it was announced yesterday, the former SEC Commissioner, Annette Nazareth, joined the board of Bitfury, a blockchain technology company.
According to a recent report published by KPMG report, blockchain is becoming the “the new normal”. The largest technology and financial companies in the world have created entirely new departments within their organizations to develop and implement blockchain technologies to enhance their existing business and establish additional verticals.
To the skeptics, they say the writing is on the wall. They say that the blockchain craze is a bubble, and that cryptocurrencies are a ponzi.
I would beg to differ, and believe the study conducted by KPMG is proof of the inherent optimism within the blockchain and cryptocurrency industry. It is reported that in the first half of 2018 nearly $60 billion had been invested into companies developing blockchain technology. What is interesting to note, is that this figure does not include the quantum of cryptocurrency being exchanged into fiat, or any non-reporting private entities that are actively involved with blockchain and cryptocurrency development.
They also estimate that single niche industries within the broader blockchain space are going to be valued in the tens of billions of dollars themselves.
In my humble opinion, what I believe we are witnessing is a market reaction to perceived lack of optimism and fear in traditional global markets. The former of course untrue as the data suggests, and that KPMG estimates the second half of 2018 to add significant investment to close out a record year, with capital investment to exceed $100 billion for 2018.
As regulations are looming and governments have begun to crack down on a number of ICO projects and illicit schemes, this sentiment has done nothing but remove confidence.
My assessment is that in a post regulated market for cryptocurrencies, which is well underway, this volatile behaviour in the markets will cool off, and that practical oversight will allow for normalization and continued adoption.
We must never lose site that Bitcoin and other cryptocurrencies paved the way for validating blockchain technology, and that these examples have made the case for practical uses, albeit limited in scope.
Keep calm and HODL
Adam, Founder of Bitbuy
Adam Goldman is the founder of Bitbuy. His involvement in the cryptocurrency industry dates back to 2013. He has witnessed the highs, and the lows of a nascent industry pushing through new technology that purports to uproot the existing financial ecosystem. Adam has written several publications in the past including: “Why Our Economic Liberty Depends on the Blockchain” which was published on Coindesk.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
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