What Is the Current Situation on Cryptocurrency Market?
Indeed, Bitcoin, the most popular cryptocurrency, suffered a sharp decrease of its value. In fact, it became about 75% cheaper. The fall of other less popular cryptocurrencies was even more dramatic. For instance, Ethereum lost 80% of its value, while Litecoin has fallen by 85%. The answer is pretty clear: does the cryptocurrency market have a potential to survive bad times and when will the recovery begin?
In spite of this, a lot of individuals as well as organizations demonstrate a stable interest in the technologies related to blockchain. Really, what goes down, also may go up over time. An overwhelming majority of experts agree that the last year’s fall is not the end at all and feel optimistic about the possibility of future rise on the market. Moreover, the individuals also expect the cryptocurrencies to regain lost ground. Many investors now avoid investing in cryptocurrencies directly.
Instead, they look for the blockchain-related businesses that are not strongly dependent on cryptocurrencies but may bring a good yield when the situation on the cryptocurrency markets improves. Putting cryptocurrencies aside for a while, it’s worth considering the outlooks for such companies as Square, NVIDIA and Goldman Sachs.
Brilliant Growth on the Background of Falling Market
The initial business for Square was the manufacturing of the equipment facilitating the processing of payments. The company was mainly focused on small businesses. At the moment, Square demonstrates impressive results in the area of business crediting and continues to introduce innovative solutions in person-to-person payments. Apart from this, Square has promising opportunities to expand globally.
The market capitalization of Square is $26 billion. The value of the company’s shares rose by 170% at the end of September 2018 and there was an increase for another 72% before December 14, 2018.
In November 2018, Square reported that its revenue was $43 million in BTC in the third quarter, compared to $37 million in the second quarter.
The application Cash App has a really phenomenal potential to grow as a crypto cash flow system. Over 3 million users installed it and the number rapidly increases. In October 2018, Square engineers opened the source code of their service Subzero aimed at a cold storage of Bitcoin funds. After a couple of months, the company announced that the residents all over the USA now have an access to the services provided by Cash App.
The Renowned Leader Slowing Down
NVIDIA is a leader in manufacturing graphics chips. The company thrived on the marketplace during the last several years mainly due to the high sales in the segments of computer games and applications for data centers. Production of video-cards for crypto mining was another attractive area of activity for NVIDIA. However, the profitability of mining-oriented chips is constantly decreasing due to the fall of the cryptocurrency market. The company’s representatives admit the consequences of the market fall are still substantial, that’s why NVIDIA continues to sell stocks actively. The forecasts remain pessimistic for several quarters ahead.
So far, NVIDIA decided to make use of the low prices for its shares and buys them back. The company still runs the profitable gaming business and develops technologies for data centers. Apart from these, NVIDIA invests considerable funds in robotics, self-driving programs and medical imaging that are regarded as the drivers of future growth for the company. Provided Bitcoin increases in price and the crypto markets demonstrate a confident growth, NVIDIA may easily shift to the direction that was once profitable.
Goldman Sachs: revision of forecasts and sceptic scenarios
Goldman Sachs is the institution that treats the cryptocurrency market in the most pessimistic way since its rapid fall in 2018. The company revised its plans to launch a cryptocurrency trading desk in September 2018. The main reason for the delay was “regulatory obscurity”, i.e. uncertainty of regulatory politics regarding digital assets. However, the bank admits this decision may be revised in the future.
Nevertheless, Goldman Sachs made considerable investments in business projects dealing with blockchain technologies and crypto cash flow systems. It’s worth mentioning a startup Circle that introduced a stablecoin backed by the US dollar. Another example is BitGo, a company that develops security products for blockchain technologies. It managed to raise $70 million to develop solutions for the safe storage of cryptocurrencies.
Undoudtedly, the blockchain technologies are evolving, so Goldman Sachs may benefit from these investments in the future. A wise combination of banking products and blockchain technologies may bring the financial sector to a new level and attract millions of new clients.
Smaller Companies Pushing the Market Ahead
While the large-scale corporations try to distance themselves from the active participation in the functioning of cryptocurrency markets, our platform Ucrypt feels pretty optimistic about the future of crypto industry. A dedicated team of professionals is working hard every day to deliver the best service for the Ucrypt users.
Ucrypt is a safe platform where you can exchange bitcoins for fiat money without any risks. Recently, we introduced a new service of btc / usdt exchange which is very easy to use. In general, USDT can be used to buy Bitcoin or other cryptocurrencies. It can be easily transferred from the exchange to any wallet that supports Omni Layer. Our platform charges the minimal fee for the BTC/USDT exchange transfer.
We are proud to offer you an extremely reliable and transparent system with a 24/7 customer support. Join the team of enthusiasts and let’s develop the crypto industry together!