Bitcoin Global News (BGN)
December 13, 2018 -- ADVFN Crypto NewsWire -- The crypto winter has
truly lived up to its’ name. According to Fortune magazine, all the
way back in February, we had already lost over 50% of 2017’s ‘ICO’
projects. With that and the fact that we have been in what may be
considered a year-long bear market, it is reasonable to conclude
that this number is much higher now.
Beyond the continuing drop in
crypto prices, lending credence to this idea is the fact that firms
like Steemit have decided to cut up to 70% of their staff, while
even the Ethereum giant, Consensys has lost around 13%. In short,
until recently, it was easy to think that no one was truly
safe.
At the same time, a bear market can
be an excellent case study in understanding what firms are prepared
to succeed through any sort of difficulty. Central to this idea is
the example of Blockstack, which Coindesk reported on
today.
While their report is quite
sprawling on the subject, its’ conclusion on why Blockstack is
persisting through the crypto winter are clear. According to quotes
from Muneeb Ali, Blockstack’s co-founder, Blockstack’s capital is
approximately 70% fiat. Furthermore, the crypto that they do hold
is reportedly excluded from being used for anything related to
their active operations.
If this seems antithetical to what
blockchain-based companies are all about, that is because it likely
is. Reportedly, Ali has even gone so far as to say that his company
has no plans to change these parts of their capital
structure.
Despite this, once a certain amount
of time has gone by and a certain level of regulatory approval is
achieved, Blockstack does plan to incentivize app development on
its’ platform with crypto.
In the end, the blockchain industry
is and always will be heavily based on decentralization from the
traditional financial system. Therefore, many companies will
probably refuse to follow a similar approach from the outset. Even
so, in the very least, one could conclude that in a bear market,
taking on more fiat could lead to greater longevity instead of
failure due to market volatility.
By: BGN Editorial Staff