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Is Crypto the New Scapegoat for Tech Companies

Is Crypto the New Scapegoat for Tech Companies?

Tech executives are forced to answer for sliding revenues to investors, and they have cited crypto as the reason. Google’s chief business officer, Philipp Schindler, blamed the decline in the company’s growth, although partly, on a drawdown in ad spending by crypto companies during a third-quarter earnings call.

AMD, a semiconductor company, also pegged its tumbling revenue on falling demand for graphic processing units (GPUs) that can be used in crypto mining, among other reasons. Reportedly, crypto revenue dropped from 30-35% to 5% of the company’s total since 2021.

Crypto’s institutional journey is commendable and far from common. This is the first real quarter where the companies are actively citing crypto as a reason for missed revenues.

But all this started when tech companies became intertwined with crypto companies, leading to a shortfall.

Google surpassed earnings expectations in 2018’s crypto winter, regardless of whether crypto firms were buying ads. The tech economy was forced to shift toward crypto with venture capital, and talented young coders created a buzz around blockchain’s potential. Now come 2022, crypto and tech are in tandem with prices.

You have to be supportive of blockchain and digital assets if you are running a profit-focused tech operation since it seems that’s where we are headed.

The unimpressive trading returns of 2022 have beset and fragmented crypto’s move to the mainstream.
The original crypto-tech integration has grown to be 80% more profitable Monday as compared to a year ago. However, tech is probably headed in crypto’s direction, despite the missing revenue headaches. Meta and Reddit are integrating NFTs on their platforms, while Google Cloud is launching new partnerships with the ETH and Sol communities.

Companies unrelated to Web3 development will probably be safer from the rise and fall of crypto. With the tech sector being a world where every company is part of the crypto, a company cannot help but get tainted with crypto.