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22 December 2018 21: 30 & nbspUTC
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22 December 2018 at 21: 30 & nbspUTC
Over 340 companies with links to Bitcoin and Blockchain were dissolved during the course of the year, due to the bearish bear market which plummeted to record lows in November. The companies in question are all based outside the UK and were trying to ride the wave of optimism that was generated by the surge in cryptocurrency prices last year.
2018 was not a good year for Bitcoin, or other cryptocurrencies for that matter. Almost a year ago, Bitcoin (BTC) was priced around $ 20,000, which collapsed to $ 3,900 in December 2018. With the boom in the officially over encryption, the surviving companies that were not forced to shut down or get absorbed have taken other measures, including word removal crypto is Blockchain from their company names.
Sky News recently released a research that reflects companies that are suffering a severe blow from falling prices. the report says,
"… at least 340 companies linked to cryptocurrencies or blockchains have been dissolved or liquidated this year, compared to 139 in the previous year, more than 200 of these companies have been incorporated into Companies House in 2017, when the Bitcoin's value rose 1,500% up to the peak recorded in December ".
As reported, most of these dissolutions came in June-November, when the price of Bitcoin fell to a relatively high $ 5,000 ballpark. Surprisingly, the number of companies that fail is now higher than the number of new companies that register in the Blockchain space in the United Kingdom.
In a perfect example of how stocks and investments drive most of the companies in question, Long Island Iced Tea changed its name to Long Blockchain in 2017 and its share prices rose by 300%. Now, however, the tables have turned and the poor reputation of Bitcoin generated by falling prices has pushed companies to resort to the same words that drove profits last year.
"Of the companies that have not been dissolved, Sky News has found more than 50 that have changed their name to Bitcoin, Blockchain or cryptocurrency no longer referenced."
It is not surprising that companies and entrepreneurs trying to cash in last year's hype are forced to close as soon as the bubble has broken out, and most likely, the rise in business has been the catalyst. Most of the large companies that were present from the start, however, are still healthy – Coinbase is the best example.
BTC's reputation is still in ruins, however, and it is quite likely that viewers will be skeptical about digital currencies for years to come.
Debarun Gupta
Debarun is currently pursuing a degree in economics and writing when he is not watching cat videos on YouTube.
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