Another wave of Bitcoin investment boom has passed, and the Bitcoin industry is facing difficulties in financing

VC financing in the bitcoin-related sector has fallen rapidly from its peak in the first quarter of this year. Big banks on Wall Street have begun to develop their own businesses in this area instead of investing in other companies.

Michael Sonnenshein, head of sales development at Grayscale Investments, told Business Insider: “Unfortunately, many banks and institutions are focused on developing their own blockchain technology rather than investing in Bitcoin’s blockchain technology.”

JPMorgan Chase is joining more than 40 banks in their push into blockchain, and a startup called R3 has partnered with the banks to focus on blockchain technology research.

JPMorgan Chase CEO Jamie Dimon said that investing in R3 is cheaper, more efficient, and can operate safely and normally.

Blockchain technology is essential in sharing databases. Blockchain technology allows people to exchange information, as well as virtual currencies such as Bitcoin, equity certificates, contracts, securities, etc. Through blockchain technology, cross-border consumption will become faster and cheaper.

Blockchain technology startup Digital Asset Holdings is a victim of this round of financing difficulties. According to the New York Times, the company faces many difficulties in raising funds.

Currently, a large number of startups have emerged in the field of Bitcoin and blockchain, and these startups compete directly with each other. This is another major problem facing Digital Asset.

Investor enthusiasm for Bitcoin and blockchain technology has waned since peaking in early 2015, according to CB Insights.