Looking around, it can sometimes feel like the blockchain is a dying concept. Bear markets have battered the industry, and it seems no different this time. While some turned their backs on cryptocurrency as an investment prospect, others have adopted it as part of their strategy for success in the new millennium.
Looking closely, you will see that many small companies are still entering the financial services sector looking to leverage blockchain technology for their business growth. Initial coin offerings (ICOs) remain one of the most active sectors in investment in blockchain startups. This article aims to highlight some of these trends and provide insight into where things will likely take place over the coming years.
Large companies are embracing Blockchain
We have previously written about the growth of blockchain in the financial industry, how you can use it for smart contracts, and how it can reduce the need for intermediaries like lawyers in business transactions. We can see this adoption across the entire industry, especially in the wake of the recent regulatory changes. The use of contract technologies has led to the growth of development companies like Webisoft.com which is renowned for outstanding contract development services.
In the words of one financial services company: “Blockchain technology will change the way we do business. There will be no more need for third-party intermediaries like lawyers, accountants, or banks. All this will lead to big disruption in the financial services sector.”
Mergers and acquisitions are on the rise
It is often said that a company’s strategy is driven by its financial results, which is true even for those companies that do not use the financial market. The recent surge in mergers and acquisitions in this sector can be attributed to blockchain and cryptocurrencies’ general excitement.
We can see this adoption across the entire industry, especially in the wake of the recent regulatory changes. Companies realize the benefits of taking a long-term view of their strategy and actively look for partners and investors with the same goals.
Cryptocurrencies remain the new kids on the block
In the early days of Bitcoin, many people were in it for the wrong reasons. They either wanted to be the first to make a profit from it, or they were too confident in their ideas and didn’t consider the new technology’s popularity.
Today, things are very different. Bitcoin has evolved into a popular payment method from online shopping to cross-border payments. Many other cryptocurrencies are now being developed, and it is easy to see that they are trying to capture a similar market share as Bitcoin.
A new wave Of Crypto-Currency offerings
In the past, when someone created a new type of currency, it was usually accompanied by a lot of hype. This year, things are very different as far as the new coins are concerned. It is still early days, and there is still much uncertainty around the value of many of these coins, particularly those issued by initial coin offerings (ICOs). It has also been argued that the ‘new kids on the block approach can be a good thing, as it can prompt more investment in the sector by outsiders, which can, in turn, lead to more innovation and growth.
In the past days, the failure of currencies like Bitcoin and Ethereum to live up to expectations made investors less interested in this investment. At that time, only a few coins were attracting significant investor attention, such as the Japanese Yen (JPY), the United States Dollar (USD), and the South Korean Won (KRW).
Today, over 70 digital currencies are available for trading on various exchanges, and that figure is expected to rise to over 100 by the end of the year. While most are still in their infancy, several new cryptocurrencies have captured the investing public’s imagination.
Disruption in the financial services sector with blockchain technology
We have written before about the disruption in the financial services sector caused by blockchain technology and cryptocurrencies. You can find one of the most significant examples of this in identity verification. When someone wants to sign up for a new bank account or establish a new business relationship, they must provide their real name and date of birth.
It is costly and time-consuming for banks and money transfer companies to process these documents, and often the information is incorrect. This leads to fraud since many people will not provide this information when needed. Blockchain technology could cut the cost of identity verification in half.
Additionally, it can help companies to verify their customers’ identities without the need to go to a bank or money transfer company.
What is next for blockchain investment?
There are so many exciting things that can happen in the world of blockchain and cryptocurrencies that it is no wonder that so many companies are looking to invest in this field. However, before fully implementing their strategy, they must pass a rigorous audit to ensure they are ethical and have good intentions. This is the process that any investment company follows to ensure that they are following the highest ethical and financial standards.
After that, they will need to find a project they are excited about and begin their due diligence process. Once they have chosen their project, the investment company will need to find a partner keen on finding new ways to disrupt the financial services sector.
With the market being as volatile as it has been for the past year, it can sometimes feel like the blockchain has been consigned to history books. While many have turned their backs on cryptocurrency investment, others have adopted it as a strategy for success in the new millennium. So much, so that large financial companies are now looking to adopt blockchain technology for their business growth. Initial coin offerings (ICOs) remain among the most active sectors regarding investment in blockchain startups.
The entry of financial institutions into the digital currency market indicates great confidence in these coins. This could probably be the same reason encouraging ‘future investors’ to keep tossing their dice on crypto opportunities. You can also give it a trial, and we believe in booming profits despite the uncertainty that’s keeping away some investors.