Adoption Of The Technology Plays An Important Role In The Crypto Market
In the past, several companies provided to the market new innovative products that were never seen before. And some investors such as Warren Buffet could not see this technological changes take place.
Amazon, Google and Apple, for example, were these kinds of companies that were releasing new products that users did not experience in the past. However, the market was full of skeptics about what these companies were going to bring. Although Buffet did not expect these companies to grow in this way, they are now worth billions of dollars.
This is also something that can be applied to blockchain technology and virtual currencies. Blockchain is growing in the market and it is allowing several companies to improve their services and products. Working in a simple way, blockchain offers a distributed ledger that does not depend on a single institution and that is stored in a network of computers.
There are several industries that could be enhanced embracing blockchain technology. Different sectors have already implemented different blockchain systems and could continue to do so in the future. Because of this growth, there is $1.3 billion worth of funding that entered the blockchain space in 2018.
Nevertheless, Steve Wozniak, the co-founder of Apple, is not so sure about blockchain technology and how it can be prepared for mass adoption. He mentioned that investors are not prepared to be stable in the long run, which is going to affect their investments in a negative way.
At the end of 2017 and the beginning of 2018, the Initial Coin Offering (ICO) mania in the market affected several investors. Individuals placed their funds in the market and believed that they were going to be rich fast. However, this did not happen and the market abruptly plummetted.
Most of these projects were not able to deliver the promises they made to investors when they placed their funds in the market. Some of these tokens lost more than 95% of their value and in some cases, they went out of business.
There are also some institutions that are interested in placing their funds in virtual currencies and in the whole market. Companies such as the Intercontinental Exchange (ICE) or Goldman Sachs are developing services to accept an incoming flow of investments into virtual currencies.
Moreover, IBM, Walmart are also using blockchain technology to improve the services they offer to the market.
Although there was a hard market crash, the market is maturing and regulators are entering the space trying to control it and regulate it in a proper way.