The blockchain market and cryptocurrencies have undergone great changes since it emerged in 2009 with Satoshi Nakamoto’s cryptocurrency: Bitcoin. This cryptocurrency in its beginnings did not obtain a great support for being something unknown, nevertheless, the same dynamics of the traditional financial industry, caused that the users gave a turn towards the digital economy and the industries that soon were known like Fintech.
The Fintech or technology finance companies have been taking more and more boom and they are the ones that have revolutionized the new way of doing business, migrating from traditional contracts to smart contracts and supporting the growth in the use of cryptocurrencies as means of payment.
What is the winter of cryptocurrencies?
This moment in which fintech companies began to emerge the value of cryptocurrencies rose rapidly. The value that the bitcoin reached reached more than thousands of dollars, after not being worth even a full cent at the time of initiating its participation in the market. This remained in constant rise until the year 2017 when it began to experience a change. The rise of the altcoins and the diversification of the blockchain made the bitcoin begin to fall, while other cryptocurrencies began to take more value. However, this did not hold. For a moment the cryptos alternatives to bitcoin stopped increasing their value and the bitcoin kept falling. This period is what is known as “cryptocurrency winter”
How did this affect fintech companies?
It is hardly logical that the drop in the value of cryptocurrencies had a negative influence on the financial technology companies that were emerging, some of them unfortunately did not survive because they did not have strong enough bases, however, some of them started with good foot and although they have not had the highest capital since its inception, managed to raise strategies that allowed them to stay in the market and still continue to resist.
In the previous article titled Top 5 fintech companies we already mentioned the 5 best known companies that are currently on the market. Obviously if these companies have managed to position themselves in this top 5 is because they survived and continue to stay in the industry despite the downturn that has been in this financial medium.
Within these 5 companies is Mercury Cash, which since 2016 has focused its efforts on offering its users the best options in terms of financial technology: the security of their assets, the confidence that they can buy and sell cryptocurrencies with total tranquility since they have obtained all the certifications and accreditations required little by little, advancing with slow but sure steps that they have managed to maintain today as a profitable and reliable company.
Will winter continue or is it almost over?
Trying to answer this question is how to try to predict the future and that is impossible, however, trends in the market indicate that this winter could soon become spring and cryptocurrencies could resurface and re-position and even overcome the value they had some years ago.
The new cryptocurrencies and new technologies that have been added throughout 2018 and that aim to continue and even improve in 2019 are aimed at giving a new impetus to the world of the blockchain, in such a way that the trust of the users returns and increases the number of transactions, relying on payment processors that will be incorporated to more and more companies.
What do you think about this topic? Do you think that the end of winter of cryptocurrencies is approaching?
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