Last year, with the exception of the Bitcoin (BTC) and a few other digital assets, majority of virtual currencies fell to as low as 90% against the USD. Despite this development, stakeholders within the crypto community particularly executives with new businesses and initiatives in the ever-growing sector, believe the bear market actually gave firms positive opportunities to go back to the fundamentals and reshape the foundation of this asset class.
Bitcoin (BTC) Price Today – BTC / USD
What are the Merits of the Bear Market?
Reports have shown that majority of Blockchain-based projects or decentralized applications have conducted ICOs (initial coin offerings) in 2017. Hence, the actual valuation of most Blockchain-related businesses has depended on token performance.
During bear markets as seen in previous years, and the current one crypto assets with strong fundamentals typically survive and show signs of minimized losses.
According to data published by ATHCoinIndex, the majority of the top crypto assets including XRP, Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Cardano have dropped by 90% to 97% from their all-time highs over the last 12 months.
Bitcoin (BTC) Dropped by 82% Against the USD Over the Last 12 Months
Meanwhile, dominant digital asset Bitcoin (BTC) dropped by 82% during the same 12-month period although it remains as one of only a few crypto assets to see an increased hash rate throughout the correction phase. Bitcoin’s harsh rate has risen from 15 exahash to 45 exahash since January 2018. When you consider the tendency of small market crypto to fall significantly in comparison to Bitcoin (BTC), during a correction, investors typically acquire Blockchain projects building long-term applications, and protocols, as well as solutions substantially lower than the actual rate.
Sheri Kaiserman, who serves as the principal advisor of recruiting company Maco.la, believes that the best way to earn money is to acquire the infrastructure firms helping to build the foundation.
During the peak of the cryptocurrency market back in the later part of 2017, roughly 13 months ago, many blockchain protocols were actually valued at billions of USD. Yet the majority of these projects failed to show any working products or active user bases.
In the same period, Blockchain projects have dropped to a reasonable valuation, which has presented investors with the opportunity to purchase equity in infrastructure building firms.
Easy Talent Pick Up
As per previous reports by CCN, the salary of developers in the Blockchain sector in Switzerland have increased to $180,000, due to the growing interest in the Blockchain sector on a global scale. However, cryptocurrency job offers in 2018 have actually been presented by Blockchain-related services that have gotten capital from token sales.
As blockchain protocols started to drop in valuation and more teams began to experience funding crunch, developers and talents were let go of. According to Adam Jiwan the CEO of Spring Labs, in an interview with Bloomberg, the funding crunch has made way for new companies and already established businesses to draw in more talent.
In Jiwan’s words:
“The skepticism is vastly warranted because the Blockchain technology is untested and nascent at an industrial level. Our hope is that this gives us a great opportunity to draw in the best talents.”