Bitcoin or Blockchain: What Causes Crypto Investments to Double?

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Investor interest in crypto assets has led to a huge increase in overall investment in the blockchain and cryptocurrency industry, a new report from accounting firm KPMG has revealed. He further said that this investment tranche had already doubled in the first six months of 2020 compared to all of last year. The report read,

Investments in blockchain and cryptocurrencies increased significantly in S121, with investments more than double the level seen in 2020 and surpassing the previous annual record set in 2018. ”

The study, titled Pulse of Fintech H1 2021, covered investing activities in different financial technology sectors across the globe. While he was covering the overall fintech trends related to investment deals for this year, his conclusions on crypto investing were noticeably optimistic.

Noting that the year marked explosive growth in crypto and blockchain investments, the report further predicted that crypto will be a priority for investors going forward. The first six months saw 548 crypto-related investments, which included activities such as venture capital, mergers and acquisitions, in the industry.

The total value of those investments was around $ 8.7 billion, more than double the total value of the 580 investment deals that took place in the year 2020, according to the report. In addition, the current year has also seen a number of seed investment rounds by crypto and blockchain startups, many of which have successfully raised significant amounts of capital. These included BlockFi, Paxos, Blockchain.com, and Bitso, all of which raised over $ 100 million.

The study also noted a growth not only in the number of investors, but even of the different types that emerged during this period. Pointing out that this maturity of investors is what has led to a significant increase in institutional capital flowing into the crypto space, the report further noted that,

Investor awareness and knowledge of the industry is increasing, with investors now having a much better understanding of not only crypto assets, but also the operational and procedural side of crypto, custody and storage to store keeping, as well. than the competitiveness and maturity of service providers.

The study concluded by predicting that as the crypto space continues to mature, a stronger separation between cryptocurrencies and the use of blockchain technologies will be observed. And as new types of assets such as NFTs gain traction among investors, the exchanges may focus more on this asset class.

Finally, the study expected that an increased focus on regulatory activity could be an important part of the future of the industry, noting in particular that India as a country could regulate cryptocurrencies in as an asset class in the coming months.

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