Is the Blockchain Fever Fading?

The cryptocurrency market has had its ups and downs. It has seen its peak during the ‘boom’ phase in 2017. It has also seen its worst crash to date, tumbling a nightmare for crypto enthusiasts. However, the sector that has always shined in white light is the technology behind cryptocurrency namely blockchain. 

The opinion of the writer is their own and do not constitute financial advice in any way whatsoever. Edited by Sean Vanian, contributor for The Coin Radar.

From the news articles to reports, we have seen the upward trends of blockchain technology. However, a new report by CB Insights seems to suggest something entirely different. 

Is Blockchain a Fad?

While the cryptocurrency market has seen its good days and bad, the blockchain sphere has always seen the light of the day. 

In almost every research, the numbers for blockchain investments are up. Even the recent WEF report suggests that 10% of global GDP will rest on blockchain by 2027. But, a latest report seems to be pointing that things may not be as rosy as one would like to think. 

A recent data shows that investments in the tech have substantially declined. The data compiled by CB Insights revealed that the influx of cash into the blockchain sphere has dropped. 

The figures reveal that blockchain startups received $4.1 billion for investments by venture capitalists in 2018. At the beginning of 2019, this figure dropped to $784 million only and is further expected to reach $1.6 billion by December 2019. Analyzing the numbers indicate that in a year, blockchain investments have dramatically reduced by 60%. 

However, even though the figures state otherwise, the real story is different.

Moving Beyond the Hype

The entire industry of blockchain is maturing. Even the companies investing in blockchain are no longer startups. 

From being a startup technology, blockchain has now evolved into the mainstream. The investments pouring into the tech are focussed on developing genuine products that can add value to industries. 

Furthermore, even the corporations investing in blockchain tech range from Walmart and Maersk to Microsoft and IBM. Even governments across the world, including China, are advocating the use of blockchain technology. Many countries are deploying their digital identification systems and land registries on the blockchain. 

Such trends suggest that even though figures tell you a different story, it is not entirely complete. Even if investments are declining, it is majorly due to the fact that blockchain is moving beyond the hype. The investments being manifested into products on-ground suggests maturing of blockchain tech. 

Blockchain Real-World Use Cases

What started out as an option in the financial ecosystem, today has spread across multiple industries. The applications of blockchain are no longer limited to the finance world. 

Today, the tech is explored for a number of real-world use cases including supply chain, healthcare, governance, real estate, banking, and many more. This is also one of the reasons why such an enormous tech cannot be ignored. 

Figures or not, one thing is for sure. Blockchain is here to stay for a long time. 

The opinion of the writer is their own and do not constitute financial advice in any way whatsoever. Edited by Sean Vanian, contributor for The Coin Radar.