Bets by American businesses on the crypto market
Despite the quagmire of the crypto industry status quo, U.S. businesses are still betting that it could be the leader of the future.
According to the Wall Street Journal, online financial advisor Betterment launched thematic crypto portfolios for its clients this week. Bank of New York Mellon then began offering custody services for cryptocurrencies. And, Alphabet’s Google signed a protocol that allows crypto payments for its cloud services through Coinbase.
At the same time, the data proves that venture capital still prefers cryptocurrencies. According to PitchBook, funding deals in the crypto industry are actually increasing, with 2,990 year-to-date, compared to 2,657 in the same period last year. If you are the one who allocates capital, the valuation will also be more reasonable. The total deal value in 2022 was just $37.9 billion, down 52% from $78.4 billion a year ago. The decline in valuation is not only due to the bear market, but also represents the rational judgment of investors and entrepreneurs in the primary market on the return to rationality of projects.
The functionality of cryptocurrencies
Ignoring pure speculation, what practical impact can the technical characteristics and trends of cryptocurrencies have on businesses, and can these influences make companies unswervingly choose cryptocurrencies? Deloitte has released a report that mentions several advantages of using cryptocurrencies by businesses, including a new customer base, new liquidity and capital pools, the financial advantages of programmable money, more secure remittances and greater control over corporate funds.
“Of course, the obvious volatility risks need to be carefully considered.” Deloitte noted this at the end of the report.
The report also mentions that according to an estimate at the end of 2020, more than 2,300 U.S. businesses accept Bitcoin, not including Bitcoin ATMs. More and more companies around the world are using Bitcoin and other digital assets for a large number of investment,…