Startup Companies Blog

Bitcoin’s Biggest Boom: What 2021 May Hold for Crypto Startups

Over the holiday period of 2020, Bitcoin hit its highest ever exchange value. Worth $40,000 at its peak, it is still holding steady at the time of writing. The situation, of course, is stimulating for startups dealing in and powered by cryptocurrencies. What might they expect in 2021?

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The Future’s Bright

Bitcoin, or BTC, is volatile. As a result, it is likely to experience immense highs and frequent lows. However, the global situation may have propelled interest in crypto to a point where it gains extra stability. Startups that revolve around blockchain (the base of crypto) witness funding of above $3 billion.

According to Statista, the recent investment increase is in stark contrast to the situation back in 2012, when investments were $1 million. In less than a decade, investors are piling on board blockchain. The data Statista provides does not account for 2020 or the December BTC boom. Therefore, these levels can only go higher.

However, The Block shows that $900 million alone found its way to blockchain ventures during Q3. Such figures are promising for working with blockchain.

But what does this mean? On paper, it suggests that ventures centering around crypto and blockchain could expect more substantial interest in the years to come. Companies such as Hashed, for example, received $120 million in funding for their blockchain investments.

The Future’s Dangerous

For ventures and entrepreneurs dipping their toes into crypto, 2020 proved to be an exciting year. Statistics show that the fever surrounding BTC isn’t slowing down. However, experts, even those who make money from blockchain, suggest exercising caution.

2021 will potentially be more unpredictable than 2020 in many ways. BTC, and other cryptos, will likely remain volatile. Therefore, while many investors are taking advantage of the great peaks in recent months, it is still very early.

What these recent boosts will provide to companies handling blockchain is stability. Entrepreneurs and teams building on BTC likely struggled to get capital to create new funds and crypto tools. Thankfully, the rising value of Bitcoin seems to be injecting some much-needed confidence.

This means, should crypto face pitfalls in the year to come, many businesses could prepare better. Regardless of whether or not BTC fails in the months to come, these firms are in steadier positions. They have access to funding that would not perhaps have been available during shakier times.

Crypto Startups Scale Up

There are many benefits to blockchain technology, far beyond the sharing of money and the privacy of BTC. Therefore, it is arguable some ventures may use their new-found funding to show the world what it can do.

In the meantime, investors may wish to search for blockchain-friendly firms under their own steam. Startup databases such as Fundz not only showcase startups based around crypto and its technology but those which accept BTC payments. As the world continues to contract, more and more businesses are embracing BTC. Could this be the year that crypto companies go mainstream?

 

SOURCES USED

https://www.statista.com/statistics/621207/worldwide-blockchain-startup-financing-history/

https://www.forbes.com/sites/billybambrough/2021/01/08/is-this-whats-really-behind-the-huge-2021-bitcoin-price-boom/?sh=2d92f07e32d9

https://hackernoon.com/9-experts-weigh-in-how-to-launch-your-blockchain-startup-in-2021-q950318e

https://www.forbes.com/sites/lawrencewintermeyer/2020/12/23/bitcoin-rally-attracts-wave-of-private-investment-as-leading-blockchain-vc-raises-new-120-million-fund/?sh=2672e3fb588c

https://www.theblockcrypto.com/genesis/80099/q320s-blockchain-crypto-venture-investments

https://www.coindesk.com/cryptos-big-rupture-is-coming-in-2021