Less than a month, bitcoin has lost 50% of its value that is not passed in vain for firms staying in the peak yield during the growth of bitcoin. Now they feel a frightening decline in their market values.
Most affected companies such as Overstock, which is stored part of the state in the digital currency, and Square Payments that previously announced plans for the sale of bitcoin.
Of course losses are not comparable with the actual losses of cryptocurrencies, but they are very interrelated.
Square estimated a loss of 5% or $90 million This week the company under the leadership of the Twitter CEO Jack Dorsey finished with a market value of $15.1 billion
Overstock, supporting bitcoin in 2014, suffered a loss of 11%. As a result of losing $200 million market capitalization of the company amounted to $1.8 billion.
The fall of the cryptocurrency market, many linked to the uncertainty caused by the recent actions of the regulators of South Korea, which reinforce the fears of large firms when dealing with cryptocurrencies.
Some companies have tried to Express themselves and make money on bitcoin and the blockchain, but now I can be disappointed.
Thus, many firms changed the direction of their activities or simply to beautiful to advertise and cash in on the cryptocurrency mania. Of course, it gave good results. However, there is another side of the coin. Now companies have to go through the high volatility of cryptocurrency.
Kodak, a renowned manufacturer of cameras, estimated losses of 8%. The firm previously announced plans to release a cryptocurrency KodakCoin at the end of January.
Securities Riot Blockchain, once a former biotech company Bioptix, fell by 17%. Even the stock Long Blockchain (ex-Long Island Iced Tea) have fallen in price on 2%.
The future ecosystem of cryptocurrency, as always, unclear, but one lesson should be learned. Although bitcoin has buried countless times due to its high volatility, it still shows higher stability and ability to recover. The more bitcoin is dying, so it becomes more valuable.
A supporter of bitcoin Max Keiser on Twitter explained the recovery process in the schedule, which shows that bitcoin will inevitably reach $100 000.