80 Percent Downturn in Bitcoin Prices, Still Crypto Executives are Optimistic?

Last year saw a major downturn in the digital currency rates. With 80 percent fall in Bitcoin’s prices and over 90 percent drop in other cryptocurrencies against the U.S. Dollars. Yet the executives in the crypto sphere still show positivity. They are rather looking at the challenges posed by the bear market as an opportunity that is allowing them to reconstruct the foundations of the digital currencies, the related assets, and tokens.

Looking at the positive aspects of the challenge is surely the way up to success. But what are the positive sides of the Bear market tendency that has been prominent in the crypto sphere since recent times?

In 2017, almost all of the blockchain based projects that revolved around coming up with protocols and decentralization apps (dApps) conducted either the ICOs, i.e., initial Coin offerings or token sales. The worth of such blockchain based companies and start-ups have been dependent on how well these tokens traded. Now, when these crypto-based assets and currencies faced the bear market tendency, only those with strong fundamental groundings stood the test of time and faced minimum losses in comparison to the others.

Over the time frame of last twelve months, there has been a major downfall ranging from 90 to even 97 percent (from their respective all-time highs) in the major crypto-based assets such as Ripple, Ethereum, Bitcoin Cash, Litecoin, Cardano, according to the reports obtained from ‘ATH Coin Index.’

During the correction time, Bitcoin- the world’s largest and the most prominent cryptocurrency saw a downturn of 82 percent in the last twelve months. Still, it was one of the few crypto-based assets that had an increase in the hash rate during this time. There has been an almost three times increase from 15 exahash to 45 exahash, last year in Bitcoin.

As it has been a pattern for the small scale crypto markets and small scale crypto token markets to face major downfall percentage when compared to Bitcoin’s downfall, therefore. As a result, investors tend to take up blockchain projects with a sight to create lower-priced- long term blockchain based products such as apps, protocols, and solutions. As per reports, on 16th Jan, the main advisor and co-founder of- Maco.la- a Los Angeles based investment and recruiting company- Sheri Kaiserman said,

“We felt like the best way to make money is to buy the infrastructure companies- the picks and shovels- that are helping build the foundation. They are coming down in valuation, which is the best part of the crypto winter for us.”

The firm decided at the start on last year to invest in equity instead of buying ICOs (Initial Coin Offerings.)  On the other hand, in late 2017 when the crypto market was at its all-time high, many blockchain tech-based protocols were evaluated at billions of U.S dollars. Yet many of them could not show active products and active user bases. The dip in the valuation of the major blockchain based projects in the past fourteen months is in a way a chance for the crypto investors to take up equity in infrastructure building companies and firms.

Recently there has been a trend where the blockchain developers are valued more in the crypto industry worldwide. For instance in Switzerland, the blockchain developers’ salaries have increased to 180K Dollars due to the increased interest in the blockchain technology industry. These increased salaries are offered by the blockchain companies that get their revenues from sales of crypto-based tokens. But with the decline in the blockchain protocols’ valuation, and thus the dip in the funding, the developers were dropped with the downturn. As per the reports from Bloomberg, the CEO of Spring Labs- Adam Jiwan pointed that this trend has made the companies that have been recently entering the crypto landscape as well as the already established companies to employ talented individuals. On Jan 16th, Bloomberg reported his statement,

“The skepticism is warranted in many ways because this technology is nascent and untested at an industrial scale. Our hope is this presents us with a great opportunity to recruit more talent.”

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