Did the crypto-winter lay the foundation for a stronger crypto-industry?

  • 23 July 2019, Tuesday, 11:40

It’s no secret that while 2018’s crypto-winter crippled most of the ecosystem’s businesses, it highlighted blockchain’s silver lining and its potential to give life to non-crypto projects. In order to identify the technology’s spill, The Relevance House shared a detailed report to uncover the most successful survivors of the blockchain sector.

Based on the graphics and data provided by Deloitte, the three prominent sectors to survive the crypto-winter were cryptocurrency, finance, and healthcare. With crypto-companies such as Binance and Coinbase in the mix, the report stressed that the exchanges’ enormous market caps were key to the ecosystem’s survival. Raising a red flag with regards to heavy dependence on mining, transactions, and storing operations, the report read,

“These activities can be considered either as speculative gambling by crypto-investors, or as a new-age stock exchange where “tokens” in companies can be bought and sold based on investor’s belief in the success of the projects behind the coins (or in the case of bitcoin, the success of the coin itself).”

Running parallel to this success, exchanges are leading the innovation within the cryptosphere through in-house token offerings, revamped mining algorithms, and competitive rewards programs. While the financial sector initially ridiculed crypto’s reasoning of “free” money, traditional institutions have started to offer crypto-friendly services as differentiators. Ripple for instance, has managed to strike a partnership with over 200 banking institutions post the crypto-winter. The report also spoke about RippleNet’s biggest competitor, Facebook and Libra, stating,

“The entrance of this internet heavyweight to the crypto scene has prompted large brick-and-mortar banks to line up to act as “nodes” to hold the basket of fiat assets that will back the new Facebook currency.”

Given Facebook’s mammoth user base and a robust business model, the report opined that “Facebook’s stable digital currency may be recorded in history as the day crypto went mainstream.” With the effect of crypto-winter subsiding, innovative startups across industry verticals have begun cropping up. In a trend that is distinctly similar to the Internet going mainstream, the crypto-winter may just have laid the foundation for a stronger crypto-establishment.

Source: ambcrypto.com