Blockchain & Cryptocurrencies investment blew past the previous record of $7.6bn set in 2018 with capital invested hitting $32.3bn last year, the same figure as Estonia GDP in 2020. 2018 saw a peak in investment due to the popularity of initial coin offerings and digital token projects which created “FOMO” (fear of missing out). Demand for cryptocurrencies started to subside during 2019 – 2020 as crypto projects fell through and lost popularity but has increased greatly due to Covid-19 as people see high growth and the potential to solve the inefficiencies of traditional currencies. The global Cryptocurrencies market cap is at $1.97tn as of 8th Feb 2022. Blockchain has seen similar popularity to cryptocurrencies as people trust the decentralised nature and its ability to facilitate cryptocurrencies. According to a KPMG report there is also a “growing interest in the broad spectrum of blockchain opportunities, including the ability to use blockchains to support collaborative multi-jurisdictional activities combining data, research and analysis related to a critical task into a single ledger for all.”
