Crypto Collapse Makes Industry Collapse, Bank Of England Hopes Blockchain Technology To Survive

The UK central bank, which hopes the crypto industry stays afloat. (photo: doc. Reuters)

JAKARTA – The crypto market is in turmoil after several weeks of falling prices. The booming phenomenon of cryptocurrencies is said to be similar to the dotcom bubble that occurred in the late 1990s to early 2000s. The crypto market downturn has shaken the cryptocurrency industry. A number of crypto exchanges have cut their employees.

The Deputy Governor of the Bank of England (BOE), Sir Jon Cunliffe, said that crypto businesses that are able to survive in the current turbulent crypto market will have a big impact in the years to come.

More than 2 trillion US dollars have disappeared from the total cryptocurrency market capitalization since November 2021. Sir Jon Cunliffe stated it was similar to when the dotcom bubble occurred which wiped out 5 trillion US dollars. However, a number of companies that were able to survive in those days now have a dominant role in the industry. Sir Jon cites Amazon and eBay as examples.

“Many companies are leaving, but the technology is not lost. It came back 10 years later, and those who stayed - Amazon and eBay - turned out to be the dominant players," he said.

The BOE executive's statement was quite surprising. Previously, he warned that the fast-growing crypto market would eventually affect other markets, especially given that 2.3 million Britons have invested in cryptocurrencies including Bitcoin.

The crypto market is not alone in collapsing, Wall Street is experiencing the same thing. In recent months, negative sentiment hit the global economy due to high inflation and rising interest rates.

Furthermore, Sir Jon stated that this year has been a painful year for cryptocurrency investors. However, he is optimistic about the future of cryptocurrencies and their technology.

“Whatever happens over the next few months to crypto assets, I hope crypto technology and finance will continue. This has the possibility of great efficiency and changes in the market structure," said the UK central bank chief.