The recent adoption of Bitcoin in El Salvador not only brought hoots of cheers, but also cemented the trust of a nation over a system that is decentralised and aims to run over the spectrum and specificity of blockchain.
Over a short span of time, we have not only seen blockchain startups bloom but have also seen the emergence of new and innovative companies that have tried to penetrate the ecosystem and thrive, how the crypto market will play a crucial role in shaping up the convergence of blockchain startups, and the volatility of the markets remains to be seen.
The brand-new case of blockchain in India
Amongst the newly emerging blockchain startups in the Indian corporate ecosystem, many players work across the verticals of – car rentals providing updates on operational vehicles, vehicle blocks, maintenance schedules, as well as provides information about the activity, location, and revenue of the vehicle.
Additionally, to cite an example of another Indian startup, the company allows crypto traders to deposit, withdraw and trade across multiple exchanges. Also, they offer a marketplace for traders and investors.
Another interesting aspect is the industry; blockchain technology services are not just limited to finance and transactions, many startups also provide blockchain solutions to other industries like capital markets, healthcare, governments, pharma, manufacturing, insurance, aviation, shipping and defence.
System of decentralised finance
Based on the above information, what is interesting here is to note that the system of decentralised finance that the crypto market flourishes on is an enabler of great information and ideation exchange apart from the monetary aspect of it.
The volatility of the crypto market speaks volumes about its nature, sometimes a steep fall, and sometimes an astonishing attitude in terms of numbers has been the driving force of the intent and the interest of investors through the market system.
This momentum of the bull run has been continuously shaken by influential experts and market forces which along with a public sector pushback, have intensified the magnitude and multiplicity of the market runs.
Galen Moore is of the idea that “if recent norms persist, bitcoin’s volatility may be disappointing both to traders ants for a break and technologists hoping for long-term, lower volatility that could make Bitcoin more “useful” as a currency. It may feel like Bitcoin has been in stasis for a long time, but historically speaking, this could be a long haul.”
Looking at the bigger picture
The above statement truly does send tremors of terror to the long haul of investors who have plugged in their money in anticipation of better returns, this also brings us to the note-worthy recommendations of experts and investors throughout who have maintained that the funnel of crypto market is definitely a trickle-down mechanism, each activity, however small or substantial that may be, has a correlation with the emerging blockchain startups in the space because technically they run on the same pace and practices of the blockchain system and any volatility and doubts are definitely going to be a deterrent for investors and consumers alike.
The rosy picture - or maybe not?
Many are of the view that the volatility level is comparatively high, which could result in impacts that can be harmful and also invite cyberattacks, information asymmetry, decentralisation, or the absence of regulation.
To look at the more pragmatic aspect of things, crypto volatility is not just limited to the downside but also brings along with it the promise of rewards that spill across sectors and assortments of amenities that the blockchain startup system has created.
Another interesting factor of crypto volatility is that crypto markets trade tirelessly, without any stops. Traditional markets don’t. So, measures of traditional asset volatilities are working off fewer data points than crypto assets.
Edited by Kanishk Singh
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
Link : https://yourstory.com/2021/08/effect-crypto-market-blockchain-startups
Author :- Ritam Gupta ( )
August 16, 2021 at 07:22PM
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