If you thought the bitcoin hype was cooling off, think again.
Despite bitcoin’s crash after reaching nearly $20,000 towards the end of 2017, people are still showing strong signs of interest in cryptocurrency[1] trading. VC firm Blockchain Capital reveals that 30% of millennials[2] would rather own $1,000 worth of bitcoin over $1,000 in government bonds or stocks. And Robinhood, a no-fee stock trading app, announced over 1 million people[3] have already joined their waitlist for early access to commission-free cryptocurrency trading.
But the rising popularity of bitcoin and other cryptocurrencies like Litecoin and Ripple raises several questions about the future of investing[4]. Specifically, investors and traders will be looking to see how the integration of digital currencies into mainstream trades will impact traditional stock markets.
Companies are leveraging crypto’s popularity to bolster their own valuations
In pursuit of improving their market shares, businesses are identifying ways to ride the recent cryptocurrency-fueled frenzy. Similar to the dot-com bubble, investors are eager to pour capital into any business with the slightest cryptocurrency and blockchain affiliation.
While traditional stock market platforms might not support cryptocurrency exchanges[5], companies have taken to associating themselves with digital currencies to improve their own market valuations.
The LongFin Corporation[6], for example, saw its value soar to $7 billion after the company purchased a blockchain-powered global micro-lending solutions provider. The Eastman Kodak Company[7], known best for its photography services, saw the value of its stock double on the first day after announcing it creation of a photo-centric cryptocurrency. Even the Nasdaq is considering entering the cryptocurrency space once
