Bitcoin [BTC] and other cryptocurrency loan companies thrive despite the bear market

Bitcoin [BTC] and other cryptocurrencies have seen the extreme side of the market in the year 2018. Coins have entered the course of their historical high and have come out at their lowest value for the year, with a majority of currencies that has lost more than 90% of the value from their ATH. Along with the price collapse, the market has also crushed investor sentiments by failing to recover from what appears to be a long-term bear market.

In addition, the bear market had a huge negative impact on several projects, in which some of them took the exit and others had a huge layoff. The industry that was most affected by the bear market was the mining industry, as the price of cryptocurrencies has a direct relationship with the mining activity of the cryptocurrency. This is due to the fact that the demand for mining inventory is usually high during the bullish and low market in the bear market.

Despite the negative impact that bear has had on the market, several influencers and key players believe that this bear market will lead to a much healthier market. Another key to keep away from the bear market is that there is still an industry in space that continues to produce profits regardless of bearish time – the leading industry.

According to a Bloomberg report, the creators of cryptocurrencies claim to have met strong demand from borrowers in the current market. Borrowers include investors who do not want to sell their cheap cryptocurrencies and traders who want money for short sales,

Bitcoin has fallen more than 70 percent since the beginning of last year. Companies that accept cryptocurrency or its competitors as collateral for cash loans usually require much larger buffers to ensure they are not burned by falling prices. BlockFi, based in New York, typically requires customers to deposit $ 10,000 of digital coins to take away $ 5,000 in fiat, said CEO Zac Prince.

Michael Moro, CEO of Genesis Capital, said

"The bear market has certainly helped – at least it has fueled growth […] We have been profitable from the first day. We have certainly shown that there is a demand from the market, that there is a suitable product and that it is time to invest even more in this part of the company. "

Stani Kulechov, CEO of Aave, said:

"Everything flies in the bull market, but the real magic happens when it's good in a bear market." The cryptographic loan model is one of the rarest. "

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Priya is a full-time member of the AMBCrypto reporting team. He is a finance specialist with a one-year writing experience. You had no value in Bitcoin or other currencies.