Altcoin News: Study: Flow of Investment in the Blockchain Has Declined After the Rise in Bitcoin
CB Insights reports that during the fall of the cryptocurrency market, investment in the blockchain has greatly increased, now the situation is reversed and the amount of funding for the industry may decline by 60%.
The researchers note that venture capital investors are now investing in Bitcoin and other cryptocurrencies, while companies developing blockchain solutions that are not related to cryptocurrencies receive less money.
If in 2018 $4.1 billion was invested in the industry, in 2019 the amount of financing was only $784 million. At the same time, the entire year is expected to reach only $1.6 billion. Thus, the decline in investment will be 61%.
At the same time, 40% of all investments in the blockchain occur in the United States. Companies from Silicon Valley and Wall Street are trying to achieve maximum results with new technologies. China is in second place in terms of funding with a score of 15%.
It is also reported that even those blockchain companies that have received investments do not always create a working product. Of the 33 projects studied, only 12 companies were able to make great progress in developing their solution.
Moreover, it is expected that the blockchain technology will continue to evolve. Thus, the blockchain’s funding in the healthcare market will exceed $1.7 billion by 2026, and the volume of supply chains on the blockchain will reach $9 billion by 2025.
Author: Marko Vidrih
Image source: Bloomberg