Blockchain Investments Fell 63% Due to Pandemic

Blockchain Investments Fell 63% Due to Pandemic

After heavy funding cuts for blockchain this year, Global 2000 companies are looking to DLT to regain a competitive advantage in the post-coronavirus landscape.

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Professional services firm KPMG has published a report predicting that blockchain will be one of five emerging technology sectors to see increased investment from enterprises over the next 12 months.

Titled Enterprise Reboot, the report was compiled by KPMG International and HFS Research. It draws on a survey of 900 executives from organisations on the Forbes’ Global 2000 list of the largest public companies with more than $1 billion in annual revenue.

While it found investment in blockchain fell by 63% due to the pandemic, the report predicts that the sector, along with artificial intelligence (AI), cloud, 5G, and process automation technologies, will see increased investment as major firms seek to gain a competitive advantage in the post-COVID-19 business climate.

Tech spending hit hard

KPMG noted that Global 2000 companies quickly moved to slash funding to emerging technologies as the coronavirus lock-down and recessions took effect and forced firms to prioritize survival over all other considerations. Roughly 40% of executives indicated they had moved to entirely cease investment into emerging technology initiatives.

The report found blockchain funding to have been the hardest hit by the COVID-19 lockdown, with distributed ledger technologies (DLT) sliding from the largest emerging technology sector with a weighted average investment of $18 million to the second-smallest with $6.5 million.

Executives reported that blockchain investments fell 63% on average — the largest average percentage loss of funding among the emerging technology sectors.

However, the report found that 59% of executives believe that COVID-19 has created an impetus to accelerate digitization initiatives.

Getting competitive

Executives report that blockchain investments are seen to offer improvements in “competitive positioning,” and will improve efficiencies and governance processes and provide the “foundation for infrastructure modernization.”

The report found 65% of executives believe the combined use of emerging technologies will produce greater returns than investing in a single technology in isolation.

However Steve Hill, KPMG’s global head of innovation said that trust issues continue to hamper distributed ledger technologies.

“Visible trust gaps for emerging technologies such as AI, blockchain and [internet-of-things] IoT continue to remain significant barriers to adoption,” he said.

“I believe that organizations will have to get trust right for successful deployment of emerging technologies to recover from the crisis […] It is these organizations that are likely to navigate through the recovery in better shape.”


Zur Quelle
[/ihc-hide-content]

After heavy funding cuts for blockchain this year, Global 2000 companies are looking to DLT to regain a competitive advantage in the post-coronavirus landscape.

Bitcoin Price Dips Below $9K Amid Heavy Stock Market Futures Losses

Bitcoin Price Dips Below $9K Amid Heavy Stock Market Futures Losses

Bearish moves for stocks appear in line with rumors of an incoming crash, with Bitcoin hitting its lowest levels in almost 3 weeks.

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Bitcoin (BTC) dropped below $9,000 on June 15 as a new week produced fresh selling pressure across macro assets.

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Bitcoin price tests $9,000 resilience

Data from Cointelegraph Markets and CoinMarketCap showed BTC/USD entering the $8,000 range in Monday trading — for the first time since May 28.

The latest bearish move follows a difficult week for Bitcoin in which markets almost regained $10,000 before shedding $800 in a matter of hours on Thursday.

After spending the weekend at around $9,400, support gave way once more as the outlook for the week on stock markets looked bleak. 

At press time, BTC/USD traded at around $9,000 amid an attempt to re-establish the level as support. 

Bitcoin 1-day chart

Bitcoin 1-day chart. Source: CoinMarketCap

Stocks wobble ahead of predicted “crash”

On Sunday, Dow Jones futures alone fell 900 points, with United States markets similarly uncertain prior to opening. 

As Cointelegraph reported, Bitcoin has become increasingly resilient to the impact from stocks gaining or losing dramatically, a process which has become known as “decoupling.”

Nonetheless, hints of correlation remain, with Bitcoin now at its lowest in over two weeks. Last week came a warning that traditional markets were due for a crash-style correction within the next three weeks.

At the same time, Cointelegraph analysts suggested that $10,000 would continue to evade the market for the short term — and perhaps even longer.

Keep track of top crypto markets in real time here


Zur Quelle
[/ihc-hide-content]

Bearish moves for stocks appear in line with rumors of an incoming crash, with Bitcoin hitting its lowest levels in almost 3 weeks.

Bitcoin Price Back Below $8K After Failing to Crack ‘Heavy Resistance’

Bitcoin Price Back Below $8K After Failing to Crack ‘Heavy Resistance’

No support for Bitcoin price above $8.3K, market suggests

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

Bitcoin (BTC) regained $8,000 on Oct. 23 after a fresh bearish move canceled out progress towards the top of its trading range. 

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Bitcoin rejected at $8.3K

Data from Coin360 showed another frustrating 24 hours for BTC investors, who on Tuesday watched as markets briefly passed $8,300 before tumbling to a low of $7,930.

Bitcoin seven-day price chart

Bitcoin seven-day price chart. Source: Coin360

The move underscores a familiar pattern for BTC/USD, which remains stuck in a narrow trading corridor. As Cointelegraph reported, analysts believe its range lies between $7,400 and $8,500.

Heavy resistance has meant Bitcoin has so far failed to stay closer towards the top of that range, despite late optimism on Tuesday. 

For regular Cointelegraph contributor Michaël van der Poppe, the latest retreat simply signifies a continuation of the status quo. 

“Well, Bitcoin says; we’ll continue the ranging and won’t be breaking above $8,300 yet,” he summarized in an update on Twitter. 

While price action has underwhelmed since August, proponents have stopped short of calling current conditions a bear market. Retaining coins in the face of a slow grind downwards can test resolve, Van der Poppe added, but this should not be a cause for brash moves.

“Holding through a bear market is hard, however holding through a bull market can even be harder. The fear of missing more profits or the fear of losing it all again (in case of a retrace) are hard to deal with,” he wrote.

Altcoin holders limit fallout

Bitcoin’s 3% daily losses translated into similarly weak performance for some altcoins. Ether (ETH), the largest altcoin by market cap, fell 3.7% to hit $167.

Ether seven-day price chart

Ether seven-day price chart. Source: Coin360

Some in the top ten fared worse, including both Bitcoin Cash (BCH) and Bitcoin SV (BSV), which shed 4.3% and 4.2% respectively.

Others limited their losses, such as XRP retaining its $0.29 level on the back of a 1.6% dip.

The overall cryptocurrency market cap shed a total of $8 billion overnight to hit $218 billion, with Bitcoin’s share nonetheless still at 66.5%.

Keep track of top crypto markets in real time here


Zur Quelle
[/ihc-hide-content]

No support for Bitcoin price above $8.3K, market suggests

US Rep. Kevin McCarthy Praises Bitcoin while Criticizing Libra

US Rep. Kevin McCarthy Praises Bitcoin while Criticizing Libra

Praise towards Bitcoin and heavy criticism towards Facebook’s Libra stablecoin from United States House Minority Leader Kevin McCarthy

[ihc-hide-content ihc_mb_type=“show“ ihc_mb_who=“reg“ ihc_mb_template=“1″ ]

United States house minority leader Kevin McCarthy praised Bitcoin (BTC) while criticizing Facebook’s Libra stablecoin during an interview with CNBC published on July 16.

During the interview, McCarthy said:

“I like Bitcoin. Is it where it needs to be? No, but the real thing I like when it comes to Bitcoin is blockchain, ‘cause I like the security. I want government to actually start using blockchain.”

He also explained that his concern over technology companies joining finance is anticompetitiveness. McCarthy believes that companies entering the space are looking to create a centralized system while tricking consumers into believing that it is decentralized to prevent others from participating in the market. He explained that companies have to pay $10 million to be allowed into the system:

“If you’re already a big, powerful company, that you can pay $10 million, you can enter this and you’re gonna take away all competition. So you can only use Uber, so you can only go to one certain bank, so you can only use Facebook.”

His opinion is seemingly in stark contrast with the declarations of senator Pat Toomey, who said that he believes that Libra will be launched and the issues surrounding it resolved in another interview with CNBC published the same day.

When an interviewer asked Toomey whether he expects Libra to launch or not, Toomey said that he expects it will. He declared:

“I’ve got a gut feeling it probably will. I think there are legitimate concerns that can be addressed. […] I assume that all of the regulations that apply to any financial institution would apply there as well.”

Still, Toomey admits that regulators “really need to think through” the fact that digital currencies may in the future be a threat to the monopoly on currencies so far held by nation-states. Nonetheless, he also noted that we are not near such a danger from realizing itself while admitting “who knows, adoption rates could be quite quick if there’s a real, major, breakthrough.”

As Cointelegraph reported in March, McCarthy previously said that blockchain can make the US Congress a more efficient and transparent place.

Also, yesterday news broke that former Republican congressman and presidential candidate Ron Paul says he is in favor of cryptocurrencies and blockchain technology because he likes competing currencies.


Zur Quelle
[/ihc-hide-content]

Praise towards Bitcoin and heavy criticism towards Facebook’s Libra stablecoin from United States House Minority Leader Kevin McCarthy