California companies stop using Bitcoin after the crash of cryptocurrency

Since the beginning of May, the use and investment in Bitcoin and other cryptocurrencies has plummeted worldwide. The most popular, Bitcoin, has gone from a coin worth $ 67,582 in November 2021 to under $ 50,000 in December, under $ 30,000 in April, and due to growing fears of recession, the higher price of gas, closing cryptocurrency rigs in Texas due Due to the state’s poor energy management, environmental concerns over the amount of energy needed for the currencies and a number of other factors, Bitcoin is now worth well below $ 20,000, reaching a low of $ 19,425 on Tuesday.

In California, the fall in cryptocurrency has been more acute, as the state attracted many early investors, especially in the early 2010s when cryptocurrencies were in their infancy and were worth less than $ 1,000. Investments from Silicon Valley companies and investors were an important part of the first peak of crypto growth in 2017, with many of the first crypto firms also established there in previous years.

“As crazy as the attitude of people who shouted ‘This is the future’ or ‘This will make us all rich’ was in 2021, it was much more pronounced five years ago,” investment strategist Jerry Dawson told the Globe on Tuesday. “And yes, California companies had the first ICOs (Initial Con Offering, similar to the more traditional Initial Public Offering in equities), investors here put money in like crazy, and it really spread from here.”

But as cryptocurrencies began to show more and more vulnerabilities in recent months, much of that build-up of optimism quickly collapsed. In recent weeks, especially after hackers stole hundreds of millions in cryptocurrencies from California and California companies, many in Golden State have moved away from them. Many companies have even dropped Bitcoin, Ethereum and other similar currencies as payment.

“I had to quit,” Cesar Soto, a business owner in LA, told the Globe. “I would make a transaction one week, just so that the value would fall the next time I swapped it. What really upset me was that a few even told me after the purchase that they dumped Bitcoin in this way on companies like mine, which still accepted it. Many people had become angry over these Super Bowl commercials, and needed a way to unload theirs. So a few weeks ago I stopped taking it. I really had no choice. Many of us had to stop taking it. “

“And we believed it. You know, there are problems with the banks, and I thought this was a better system. I was proven wrong.”

Concerns over cryptocurrency in California

California has made many moves to become more cryptocurrency-friendly this year, with Governor Gavin Newsom signing an executive order for more cryptocurrencies and a bill allowing the use of Bitcoin to pay for government services. However, following the sharp fall in cryptocurrencies in May, little more has been done while lawmakers are watching to see if they are stable. Many cryptocurrency companies have also moved from California in recent years, mainly due to a controversial business environment in California and the technology friendliness of Austin and Miami. Although with the rapidly falling prices of currencies, the squeeze did not hurt the state almost as much as other businesses that left.

“I left San Francisco at the wrong time,” said Mils Bjornsen, a crypto investor who moved from San Francisco to Miami in 2020. “I sold my Victorian there, came to Miami and put everything into Bitcoin. My losses have been staggering. And now I wish I still had the house there, because it would be a wonderful resource in case I can not get out of this hole I am in. “

Still, many are hoping for a recovery.

“Cryptocurrencies cannot afford to lose ground now,” Dawson added. “The blockchain technology behind them is still revolutionary, and crypto must be here for proof of concept. This does not make the technology look good.

“For California, I do not know what to say to stop everyone from withdrawing or choosing not to invest. People return to stocks and bonds, both of which are much safer and proven and true investments. Some say that Bitcoin may soon climb up to $ 30,000 again. Others see it coming to $ 10,000. Where it goes next will determine how many more people here will pull out or whether it gets up and shows up. Who knows where it will go at this point. “

As of Tuesday, investors around the world are watching the daily changes of Bitcoin and other cryptocurrencies, hoping to see where it goes from the current price.