The demand for engineers and developers working on blockchain and cryptocurrency projects has never been higher. However, as prices continue to decline, that hiring spree is in reverse. While analysts predict a reversal in crypto prices, executives are blaming the prospect of a recession and slowdown in consumer fees to preserve more money. Christopher Vecchio, senior strategist at DailyFX, says the crypto industry overgrew too quickly and misjudged the macro situation.
Demand for engineers and developers working on blockchain and cryptocurrency initiatives continues to grow
Blockchains are the technology behind cryptocurrencies. Blockchain applications are growing exponentially, as companies look to manage distributed data, track products along the supply chain, and protect intellectual property. Blockchain developers are in high demand as businesses explore the applications of this technology. Among the most prominent uses for blockchains are supply chain management, healthcare record management, and renewable energy certificate trading. The number of blockchain engineers and developers has been steadily rising over the past few years.
The global interest in blockchain and cryptocurrency technology is increasing despite shaky markets. Although the United States is the cradle of the industry, the demand for developers and engineers is increasing across the globe. For example, France and Germany are both in desperate need of blockchain engineers with experience in telecom and insurance. A thriving cryptocurrency industry means that a job is available no matter where you live.
Regulation of crypto is “patchy”
The regulatory landscape surrounding cryptocurrency is patchy, with the U.S. Securities and Exchange Commission’s chairman recently calling for increased authority in the crypto industry. He said cryptocurrencies are like the wild west, rife with fraud and potentially unregistered securities. That leaves prices open to manipulation and millions of investors at risk. In April, the market’s value topped $2 trillion, but the SEC and the US government are still figuring out how to regulate the market.
Regulators need to beef up their oversight of cryptocurrency and digital asset markets to protect consumers, ensure responsible innovation, and keep out “cowboys.” A supportive environment for innovation and regulation would help the UK economy. However, current regulation of crypto is “patchy.” The G7 group has called for a comprehensive regulation of crypto-asset issuers and service providers, and to hold crypto-assets to the same standards as other financial assets. And the Bank for International Settlements says the crypto sector is increasingly used by unsophisticated retail investors for speculation.
Crypto’s hiring spree reverses as prices decline
With the cryptocurrency boom now a distant memory, many analysts believe that a reversal in the hiring spree is inevitable. BlockFi recently announced a 20% cut in its workforce, which will likely lead users to save more money. Both these factors have an impact on the rest of the crypto market, analysts say. Christopher Vecchio, a senior strategist with trading platform DailyFX, said that the crypto industry has overextended itself and misjudged the macroeconomic situation.
As a result, the numbers are not looking as good. While the cryptocurrency market has seen a celebrity-driven surge over the past two years, the rise in prices has hurt all of us. As a result, start-ups and tech companies alike have cut staff. In the U.S., Coinbase, the largest U.S.-based crypto alternate, and BlockFi, a cryptocurrency lending company, announced layoffs a few weeks ago.