The Digital Currency Group (DCG) recently released the company’s “State of Cryptocurrency 2020” report, which conducted a poll of more than 150 securities portfolio companies. According to this study, 75% of respondents believe that their business value has increased this year, and 50% of startups have exceeded expectations at the beginning of the year.
According to the latest report from the Digital Currency Group (DCG), the state of the cryptocurrency industry is growing. The study surveyed the executives of more than 150 DCG portfolio companies to “quantify sentiment and conduct qualitative analysis of the operating trends of the crypto community.”
One of the biggest obstacles facing these companies is the outbreak of the coronavirus, but many companies have emerged from the Covid-19 crisis. Despite this, Covid-19 and remote work are still the main business challenges in 2020, but 23% of respondents still said. Other issues considered include third-party delays (21%), fundraising (19%) and technical barriers (13%).
Different from 2018 and 2019, as DCG pointed out that 66% of its crypto asset companies have increased the number of employees this year, so the work in the crypto industry is increasing. Despite the uncertainty of Covid-19, about 35% of participants said they plan to hire more people this year.
Apart from Covid-19, one of the biggest challenges in the cryptocurrency industry right now is compliance. DCG’s research shows that 51% of respondents said that compliance and regulations are the biggest issues. About 22% of executives pointed to security issues such as theft, hacking and fraud.
When asked about the most bullish development of the crypto industry in 2020, 39% of respondents said that this is due to the growth of decentralized finance (defi). 21% said that the resilience of Bitcoin (BTC) is a reward, while 15% believe that stablecoins will surge in 2020. 10% of DCG survey participants expect “big technology” to join the cryptocurrency competition.
The top executives of 150 portfolio companies were also asked if they think Ethereum can scale up before competing blockchains can catch up to its leading position. 51% think that Ethereum will expand first, 25% think it will not expand first, and 24% think they are “unsure”.
Then, the DCG survey asked respondents whether they think the cryptocurrency industry will “accelerate”, “stable” or “slowly” develop from here. 57% of people wholeheartedly believe that the cryptocurrency industry will accelerate development, while 40% want to take stable actions.
At the same time, only 3% of respondents believe that the industry will slow down from now on. Respondents also anticipated sub-industry integration, and the biggest expected integration will be trading platforms.
From here, cryptocurrency executives believe that the merger will come from wallets and custody solutions, trading tools and payments, respectively.
Most interviewees pointed out that one event that will push the industry higher will be the initial public offering (IPO) of a large US-based crypto company. The DCG report emphasizes: “We look forward to 2020 and will bring new opportunities.”
DCG’s research concluded: “2020 is full of unexpected, sad, and normative collapses, but it provides our space with the’supportive’ opportunities we think it has prepared for it, and it has been realized.” “Events that will definitely mark the end of the industry in a shadow are exciting: 95% of respondents said that a large IPO in the United States would be a positive development.”
In addition, the executives surveyed were also asked what they think the price of BTC will be in the 6 to 12 months from now. 48% of people said $10,000 to $15k, 22% of people said $15k to $20k, 21% thought the price would exceed $21k+, 8% thought the price would be between $5,000 to $10,000, Only 1% think that the price will be less than $5,000 per coin.
How do you see the recovery of Bitcoin business and the enthusiasm of cryptocurrency executives in 2020? Please tell us your thoughts on this topic in the comments below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, DCG’s “State of Cryptocurrency 2020” report,
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