The general market sentiments on Bitcoin and other digital currencies are on the rise as Bitcoin continues to smash record highs. The venture capitalists, on the other hand, beg to differ, as reported by CB Insights, a one-stop destination for all market analysis and global tech trend needs.
The company has released a report that estimates a drop of sixty-one percent (61%) in blockchain and cryptocurrency-related investments around the world.
The startling CB Insights report figures
While last year witnessed a substantial chunk of capital flowing into the blockchain’s line of business, close to over four billion dollars ($4 billion), this year though, forecasts showcase a catastrophic decline to nearly one billion dollars ($1 billion). This points to the dismaying levels of VC interest in the technology, cites the report.
The research also brings forward dwindling interests from large organizations in the upcoming technology. It observes that only 96 blockchain partnership deals have culminated this year as opposed to 302 in the first half of 2018. If the trend continues, there will be a thirty-two percent (32%) by the end of this year.
Can blockchain recuperate?
Blockchain’s desperate cries for help are further communicated through the alarming number of projects that have kicked off this year.
With only 12 out of 33 projects bagging large-scale investments from banks or corporations, the remaining are still fighting for a chance at survival. Moreover, the ones which have been commercially launched are yet to acquire widespread adoption.
Even though the United States government has been publicly condemning the cryptocurrencies and their real value, over 40% of world investments in the digital currencies comes from this country. Subsequently, China ranks second with 15% of the number of deals in the blockchain arena.
Meanwhile, the report highlights the biggest players in the cryptocurrency and blockchain investment industry, naming Digital Currency Group, Pantera Capital and Boost VS amongst the top bidders.
CB Insight reveals that the report signifies shrinking interests and appreciation for blockchain, its applications, and implications in general. It will be hard to predict if the renowned Bitcoin proponents and blockchain supporters are able to bring back the lost interest in the sector.