This Might Be The Key Reason Behind Bitcoin, Altcoin Price Surge
Blockchain partnerships offer an explanation for the increase in market capitalization of various cryptocurrencies and the consequent surge in Bitcoin price and the price of other coins.
The first two-quarters of the year 2017 have seen the crypto industry experience a massive growth in awareness and adoption.
From a perspective of economics, the high demand for Blockchain products, whether for preliminary investigations or systematic adoption has automatically generated an influx of capital which consequently reflects the value of the tokens of these Blockchains.
The growing Blockchain partnerships offers an explanation for the significant increase in market capitalization of various cryptocurrencies and the consequent surge in Bitcoin price and several top altcoins.
Partnership is key to adoption
One of the major ways being observed for the enhancement and adoption of the Blockchain technology is through partnerships with existing conventional companies.
Recently, Ripple experienced a significant surge in value and market capitalization. This is perceived to be as a result of the establishment of a collaborative project amongst banks in the Japanese Consortium for cross-border and domestic payments.
Another example of partnerships that have significantly impacted on the market capitalization and overall value of the Blockchain technology is the implementation of a partnership-based strategy by Ethereum with the launch of the Enterprise Ethereum Alliance earlier this year. A partnership which attracts large-scale conglomerates like JPMorgan.
Another emerging collaboration
With several more partnerships expected, PwC Greater China Chairman, Raymund Chao believes that such partnerships are essential for robust execution in the present day business environment.
“Embracing advanced technology for growth becomes the top priority for many business sectors. Innovative applications and solutions could improve the effectiveness of supply chain, brand reputation, and even customer experience.”
Chao’s comment comes in the event of yet another partnership within the Blockchain industry. A partnership that sees business solutions company, PwC make its first Blockchain investment by adopting BitSE’s VeChain, a Blockchain-based anti-counterfeit and supply chain company out of China, with the aim of accelerating Blockchain adoption in Hong Kong and Southeast Asia.
More partnerships to come
The impact of Blockchain adoption through partnerships by conventional entities has become very significant. As the industry grows and tending towards reasonable global adoption, more partnerships are expected.
The direct consequence of such development is increased demand for the technology, which directly implies a surge in market capitalization and subsequent rise in the value of associated cryptocurrencies.