Bitcoin [BTC] and other cryptocurrency saw the extreme side of the market in the year 2018. The coins had stepped into the year trading at their all-time high and stepped out at their lowest value for the year, with a majority of the currencies losing more than 90% of the value since their ATH. Along with the plunge in the price, the market also crushed the investors’ sentiments by failing to recover from what seems to be a long-lasting bearish market.
Additionally, the bear market had a massive negative impact on several projects, wherein some of them took the exit route and others had a huge lay-off. The one industry that was affected by the bear market the most was the mining industry, as the price of the cryptocurrencies has a direct relation to the mining activity of the cryptocurrency. This is because the demand for mining inventory is usually high during the bull market and low in the bear market.
Despite the negative impact the bear has had on the market, several influencers and key-players believe that this bearish market is going to lead to a much healthier market. Another key take away from the bearish market is that there still exists an industry in the space that continues to make profit irrespective of the bearish weather – the leading industry.
According to a report by Bloomberg, cryptocurrency creators are claiming that they have encountered a strong demand from borrowers in the current market. The borrowers include investors who do not want to sell their cryptocurrencies at a low price and traders who want the coin for short selling,
Bitcoin has slumped more than 70 percent since the start of last year. Companies that accept the cryptocurrency or its competitors as collateral for cash loans usually demand much larger buffers to ensure they don’t get burned by falling prices. New York-based BlockFi typically requires customers to deposit $10,000 of digital coins to take out $5,000 in fiat, said CEO Zac Prince.
Michael Moro, CEO of Genesis Capital said
“The bear market has certainly helped — at least has fueled the growth […] We’ve been profitable from day one. We’ve certainly proven that there is market demand, that there’s product fit and that it’s time to invest even more in this side of the business.”
Stani Kulechov, CEO of Aave said:
“Everything flies in the bull market, but true magic happens when it does well in a bear market. The crypto-backed lending model is one of the rarest.”
The post Bitcoin [BTC] and other cryptocurrencies lending firms prosper despite the bear market appeared first on AMBCrypto.