Bitcoin sank after a record peak of $20,000 by three-quarters last year when hit by the repercussions of 2017 bubble.
Many firms which are in finance and tech domains are investing their money into emerging startups who are aiming to build technology to fully develop the market revolving around cryptocurrency. Different venture capitals regularly park their money in blockchain and crypto startups that involve corporates funds’. This amount has reached a mark $850 million so far this year, stats given by PitchBook for Reuters. There are 13 deals in place which put the flows on track for a repeated annual record.
These bets include bets by companies including London Stock Exchange Group and Microsoft Corp. they spiked over five times and recorded an amount of $2.4 billion over 117 investments in 2018. This indicates many large players see value in this upcoming technology although it is finding some difficulties to get an acceptance. As using the technology, they have provided digital coins which include a bitcoin, a wide birth and also avoiding direct investment because of frequent security lapse, high volatility and worries over tightening regulation.
The lack of general reliability and trust factor has raised some doubts over the potential of cryptocurrencies to get involved with the means of payment capable of competing with fiat money.
Bitcoin sank after a record peak of $20,000 by three-quarters last year when hit by the repercussions of 2017 bubble. It is still get affected by the price movements which later on affected its performance compared with a recent 20% rise that caused a sudden change in situation among analysts and traders. Blockchain has found some uses in different sectors such as trade finance, although not getting used maturely.
Different firms are searching for ways to use blockchain and related technologies which will bring a bigger change. A recent example is a $20 million investment involving the London Stock Exchange and Banco Santander in a London startup whose platform can be used to issue debt on the blockchain, the technology that underpins most digital coins.
