From CCN.com: In 2018, with the exception of Bitcoin and many other cryptographic resources, most cryptocurrencies fell more than 90 percent from the US dollar.
The executives of the cryptographic space, in particular those who lead new initiatives and companies in the emerging sector, believe that the bear market has presented companies with positive opportunities to rebuild the basis of the class of activity and the sector.
The merits of a Crypto bear market
Most blockchain projects that develop decentralized protocols or applications (dApps) have conducted initial coin offerings (ICO) or token sales in 2017.
Therefore, the valuation of many blockchain companies has depended on the performance of tokens.
During a bear market, as seen in previous years, cryptocurrencies with strong fundamentals tend to survive and show minimal losses.
According to data provided by ATHCoinIndex, the main cryptographic resources such as Ripple, Ethereum, Bitcoin Cash, Litecoin and Cardano have decreased by 90-97% compared to the historical highs against the US dollar in the last 12 months.
Meanwhile, Bitcoin, the most dominant cryptocurrency on the market, has fallen by 82% over a 12-month period. Bitcoin remains one of the few cryptographic assets to have seen an increase in the hash rate during the correction.
Since January 2018, the hash rate of the Bitcoin network has increased from 15 exahash to 45 exahash, at least three times.
Considering the tendency of small market cryptocurrencies or tokens to go down a wide margin compared to Bitcoin in a downward trend, during a correction, investors often acquire blockchain projects that build long-term blockchain applications, protocols and solutions to a significantly lower price.
Sheri Kaiserman, the chief consultant of a US investment and recruitment company Maco.la, said:
We felt like the best way to make money is to buy infrastructure companies – picks and shovels – that are helping to build the foundation. They are falling in the assessment, which is the best part of the winter crypt for us
At the height of the cryptography market at the end of 2017, many blockchain protocols were valued at billions of dollars and most projects did not show functioning products and active user bases.
In the last 14 months, blockchain projects have fallen into a reasonable valuation, offering investors the opportunity to acquire capital in infrastructure construction companies.
Easy to learn Talent
Previously, CCN reported that the wage of blockchain developers in regions such as Switzerland has increased to around $ 180,000, triggered by a growing international interest in blockchain technology.
However, cryptographic job offers, at least in the last year, were mainly presented by blockchain companies that received capital through token sales.
As blockchain protocols started to decline in terms of evaluation and teams started to experience a financial crisis, developers and talents were left to go.
Spring Labs CEO Adam Jiwan told Bloomberg that it allowed new existing companies and existing companies to recruit new talent.
"Skepticism is justified in many ways because this technology is nascent and untested on an industrial scale, and our hope is that this gives us a great opportunity to recruit talent," he said.