BitcoinSpotlight

Even Bitcoin’s Boom/Bust Nature Has Zero Effect on Crypto Apps

Bitcoin’s recent price hike has been the talk of the crypto town since the past few days; however, according to report, even bitcoin’s boom/bust nature did not in any way affect the download count of cryptocurrency-related mobile applications.

The report suggests that crypto apps witnessed zero growth despite the tripling of bitcoin’s price this quarter. The crypto community was into these apps quite a lot in early 2018 but now apparently consumers aren’t interested in downloading crypto apps on their mobile phones particularly.

bitcoin price july 2019
img src: bloomberg

Bitcoin’s price rally has been the center of attention and justifiably so given that it was a mammoth price spike when it crossed $14,000. BTC was floating around in the lower $4,000s at the beginning of April this year and now it is just above $11,000 at press time. While one might assume that bitcoin’s off the chart performance might be doing some good for the crypto ecosystem, the truth is far from it.

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The crypto ecosystem by default relies tremendously on the online world. And since it isn’t really practical to stay connected through a computer or a laptop all the time, mobile applications come in real handy. Crypto mobile applications allow crypto users to manage everything remotely via smartphones regardless of place or time. It’s a pretty straightforward and convenient concept. However, the crypto community doesn’t seem to be grasping it.

According to data from mobile app analytics firm App Annie, the first half of 2018 witnessed 65.8 million downloads for cryptocurrency-related applications. Whereas the first six months of 2019 only saw 67 million, resulting in an increase of about 1.82%, which is pretty insignificant. The growth history of these apps has been skyrocketing as in the past the downloads increased by a massive 45% between 2016 and 2017, going from 15.3 million to 28.2 million

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The statistics of the stunted growth of crypto app downloads were drawn by searching for mobile applications that included certain key words, like bitcoin, cryptocurerncy or blockchain, in their description. The App Annie perused through the Apple’s App Store and Google Play for applications with the aforementioned specifications, and it found more than 6,500 in the finance category with the selective crypto-related key words.

The fact that downloads for crypto related apps, which facilitate the crypto ecosystem, are facing a downfall implies that crypto might not be as hot among the consumers as we might think. These stats actually indicate low interest of customers for crypto assets and they are a proof that the amazing price rally probably has nothing to do with consumers enthusiasm.

Moreover, some reports suggest that the price hike could be attributed to a significant uptick in institutional participation in cryptocurrency over the past year. According to research from institutional crypto lender Genesis Capital, an affiliate of Genesis Global Trading, there has been a significant increase in activity from institutions in the crypto sphere, resulting in volumes two to three times higher than they were twelve months ago.

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Though leaders pointed out several factors behind 2019 bitcoin bull run, whereas another reason driving up bitcoin is the rise of geo-political tensions. For example, the trade war between the United Stated and China. The increasing geographic restrictions are likely tilting people in favor of non-sovereign cryptocurrencies such as bitcoin.

The report cements the idea that bitcoin’s outstanding performance on the charts doesn’t necessarily mean the growth of the crypto ecosystem. In fact, only earlier this week, veteran trader and author Peter Brandt shared his prediction that while bitcoin will continue to grow, altcoins will not feel any benefit from it.

Brandt took to social media to clear out some of the misplaced expectations that crypto enthusiasts must be harboring in light of the bitcoin rally. He said that unlike the 2017 bull market cycle that helped shoot altcoins up the chart as well, the recent hike in bitcoin would not have a knock-on effect elsewhere.

But for now the price of bitcoin is predicted to go up and get stabilized between $10,000 and $14,000, that is according to the crypto enthusiast Mike Novogratz.

READ ALSO: Why Bitcoin Price Surges on Weekends? Here’s the Answer

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Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

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