Blockchain Investment Dropped 60% in 2019 despite Bitcoin's Bullish Run
Henry Chan Jul 20, 2019 02:00
Blockchain investment dropped 60% from a record 4.1 billion in 2018 to 1.6 billion this year, according to the findings of CB Insights reported on Bloomberg 18 July.
Blockchain investment dropped 60% from a record 4.1 billion in 2018 to 1.6 billion this year, according to the findings of CB Insights reported on 18 July.
Blockchain’s meteoric rise slowed in 2019
Source: CB Insights
As seen in from the graph above, traditional venture capital firms invested $784 million into blockchain companies in 227 deals. Despite tech giants such as Facebook are developing their own digital currencies, capital inflow from corporations is on “an even sharper decline”. This has significant implications for Silicon Valley and Wall Street since blockchain startups from the U.S used to be one of the main beneficiaries of venture capital since 2014.
A review of 33 projects by more than a dozen executives in large corporations shows that blockchain technology has not fulfilled its promise. Many companies realized blockchain technology will likely take years before there is mass adoption.
A UBS-backed project on the digital cash system called "Utility Settlement Coin" is expected to be launched next year after more than five years of work. The head of the UBS-backed project, Rhomaios Ram said, “there is a recognition now that it is a journey, rather than something with a short time frame.”
Thumbnail image via Shutterstock
Image source: Shutterstock
