Why Is the Cryptocurrency Market Crashing And How Is It Affecting Blockchain Projects?
This article originally appeared on TechBullion, and is written by Editor Angela Scott-Briggs.
The world of cryptocurrency is currently experiencing one of its most turbulent times in history, with prices of major digital currencies crumbling beyond imagination. The development has undoubtedly sent shock waves through the spine of different stakeholders in the market, with concerns on how the crash could affect Blockchain projects. The team at Digital Transaction Limited, a leading provider of blockchain-based solutions headquartered in Hong Kong, has committed their resources to deliver the true benefits of blockchain technology to as many people as possible despite the recent happenings in the crypto world.
“Blockchain has eventually crossed the chasm from early adopter to mainstream, separating the speculators from stakeholders that are in it for the long run. It is no longer this overhyped buzzword and has slowly begun to deliver the promises it’s set years ago, thanks to the emergence of a newer wave of high-performance blockchains such as ParallelChain® that has set out to address the pain points of past-generation blockchains,” said Ian Huang, CEO and Founder of Digital Transaction.
The blockchain startup founder has also allayed the fears of people about a possible extinction of blockchain and its inherent projects, stating that “albeit the recent crypto market sell-off, blockchain is definitely here to stay as its use cases transcend the world of cryptocurrency. ”There’s CBDC, smart city, stock trading, data security, workforce management… the list is practically endless ”
Why did the crypto market crash and the future of the ecosystem?
China recently made an announcement barring financial institutions and payment companies from providing services related to cryptocurrency transactions. Consequently, banks and online payments channels are unable to offer clients any service involving digital currency. It is not the first time the country is pronouncing such a ban, with a similar announcement made in 2017. However, the most recent ban covers a wider scope of prohibited services, surmising that “virtual currencies are not supported by any real value”
In addition to the Chinese announcement, Elon Musk’s declaration seems to be the straw that eventually broke the camel’s back. Since the Tesla CEO made the announcement that the electric carmaker will not be accepting Bitcoin as payment, the prices of Bitcoin and Ethereum have been in a steady decline. The market is however wary of the future, considering that Elon’s statement is a reversal of an earlier decision, which expectedly helps the digital currency market grow.
“A nearly 40% dip in the bitcoin price from its all-time high looks dramatic but is normal in many volatile markets, including crypto, especially after such a large rally. Such corrections are mainly due to short-term traders taking profits. Long-term value investors might call these lower prices a buying opportunity, as MicroStrategy just did,” Avinash Shekhar, Co-CEO of ZebPay, an India-based crypto exchange, said.
Based on the several predictions made by several stakeholders in the market, one can rightly argue that the future of the crypto market looks good. The likes of Digital Transaction have also reiterated this position, thanks to their superior blockchain and a range of groundbreaking applications.
ParallelChain®, which is the core technology offered by the company, is an all-inclusive blockchain network built by the Digital Transaction team with the fastest throughput (over 100,000 transactions per second), lowest latency (~0.003s), unlimited scalability, and full compliance to data protection laws such as the EU’s GDPR (General Data Protection Regulation). ParallelChain®’s patent-pending technology delivers the first-ever ‘all-in-one’ blockchain — a blockchain that can seamlessly be configured into a public, personal and enterprise blockchain depending on user requirements. It has been tested and vetted by independent third parties including Accenture and Arthur D. Little, and is fully operational with clients in the public and private sectors.
Other applications embedded with the ParallelChain® Ecosystem include the ParallelWallet, eKYC-chain, ChattelChain, ApprovalChain, and PreventiveChain. Each solution is designed to address a common problem in the enterprise and consumer spaces, such as error-prone KYC, insider security threats, forgetting passwords to crypto wallets, and a host of others.
