The downturn in cryptocurrencies value in excess of $706 billion in the last days of November has to lead to the collapse of Chinese crypto markets, with investor losing faith in the eventual growth of blockchain, says research by CoinMarketCap.
One of the worst aftermaths of the 80% drop in cryptocurrency has been the market wide shutting down of investor activity in the Dragon country. Though many of residents of this strictly regulated country conduct their crypto trading activities at overseas location exchanges due to the current ban on these decentralized currencies, the community as such is un-enamored by the present turn of events at crypto turnstiles.
Disenchanted with the sudden drop in value, skeptic investors from the Chinese mainland have remained away from these digital currencies. However, the impact of this disengagement is on the long-term adoption and use of the technology behind these non-fiat currencies – the blockchain technology.
Disengagement with Blockchain
The run-up to the popularity of cryptocurrencies should rightfully be paid to the technology base that these decentralized currencies were built upon.
Investors and fund managers such as Bonnie Cheung,
“this phase of disillusionment. As much as I am a believer in the long-term disruptive power of blockchain, it cannot solve all the problems in the world. You don’t know how many times we have read proposals that claimed to solve all pain points for almost every industry.”
The upgrading that the virtual currencies on the back of the blockchain technology now appears to have failed largely because of the over-valuation of the level of usefulness and change or disruption these new age technologies would bring to the industries or ring in changes at these economies.
Analysts are now quick to accept that the present market drop in prices is largely due to a correction since many of these startups failed to deliver on their exaggerated promises of benefits and ensuing revolution that would eventually come about.
It is now felt the most mature and strongest blockchain currency is yet to derive a world-changing application even after being around for nearly 10 years since Satoshi Nakamoto launched these world-defying unregulated currency alternatives.
According to Huobi, China’s CEO Hubery Yuming Yuan,
“The blockchain industry has flushed out some poor-quality projects, and the entry barrier to the industry has increased, which is beneficial to the sector’s future growth. And the latest bubble burst has rationalized the industry.”