<p>The booming development of blockchain in the whole world has stimulated the strong investment of a huge number of companies. However, because blockchain is still a young field, businesses must not only develop a detailed investment strategy, but also carefully evaluate the market that they expect to develop in the future. Thus, in this article, <a href="https://www.builder.news/" alt="" title="builder.news" target="_blank" rel="" class="">Builder.news</a> will provide several criteria to find the potential market for blockchain companies that are recommended by experts and well-experienced investors.&nbsp;</p><h2>The use of blockchain</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed08cdf8598766a8e6023f659fee92.jpg" alt="" title="the use of blockchain" width="600" height="400" class="lykafe0"></p><p dir="ltr">One of the prerequisites is to consider the adoption of blockchain in the market. Firstly, investors need to understand the popularity of blockchain as well as cryptocurrency in the place they want to invest in. Obviously, the more users take advantage of the development of blockchain technology in a market, the smoother the path to invest in it. In the context that users will easily accept the related projects because they are equipped with a full education about the convenience and innovation of blockchain, the companies will reduce the doubt and boycott from the media as well as the mass.&nbsp;</p><p dir="ltr">More significantly, in order to measure the potentials, firms should research how the market is using blockchain technology. It is not about a typical blockchain algorithm, but blockchain contains more than what diverifies in different areas accordingly. Blockchain technology is such an extraordinary subject that after a single case study, it proposes consumers with better approach, more brilliant ways to enhance future development.Therefore, it cannot be denied that blockchain technology is a keypoint for investors to consider pre-investing&nbsp;</p><h2>The software developer resource</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed08cdf8599e59a8e6023f659fee92.jpg" alt="" title="software developer resource" width="600" height="400" class="lykafe1"></p><p dir="ltr">After having a general understanding of the popularity of the market as well as the belief of users, enterprises need to analyze the human resources, especially software developer resources. This factor will significantly affect the development strategy of the company in the future. If firms choose to invest in the market that has many outstanding employees who have many years of experience in this field, their projects will promise to advance in a good way. Also, in cases where the cost of hiring is higher than in other markets, the company should consider creating a suitable strategy to deal with it.&nbsp;</p><p dir="ltr">For example, Vietnam, according to Massimo Moretti, Founder &amp; CEO of SIGNVM-Web3 PowerHouse, Accelerator &amp; Ventures Studio, is considered one of the best countries which provides a vast resource of skilled developers. For the reasons why he invested in Vietnam , he shared that the country had young people who were motivated and ambitious who were dedicated to learn and contribute. Vietnam’s high-level developer workforce was also believed to have the most reasonable hiring cost unlike that in the US or Europe.&nbsp;</p><h2>The performance of startups in market</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed08cdf859a817a8e6023f659fee92.jpg" alt="" title="what are the startups' reaches" width="600" height="400" class="lykafe2"></p><p dir="ltr">If it is a potential market, it has several projects that have reached global standards. It demonstrates not only the number of users reaching a million, but also what they did in the blockchain business and how they can build billion-dollar businesses. Investors should completely analyze all aspects of these projects, such as the team, vision, road map, and the way they go through a crisis, especially in a bearish market.&nbsp;</p><p dir="ltr">Besides, the development process of startups will show the potential of the market. In a good condition, many blockbusting projects can be facilitated to introduce and given opportunities to derive profits for themselves as well as for the industry.&nbsp;</p><h2>The encourage of government</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed08cdf859ad09a8e6023f659fee92.jpg" alt="" title="the encourage of government" width="600" height="400" class="lykafe3"></p><p dir="ltr">There is no doubt that a potential market will be encouraged and supported by the government. Because many important factors which are decided by the council directly impact the market as well as the project, such as licensing, banking, etc.&nbsp;</p><p dir="ltr">Firstly, the developing market will have an ideal legal framework (or be in the research period to create it) for the blockchain industry. According to Lynn Hoang, Director of South East Asia, Binance shared in the <a href="https://www.builder.news/news/first-time-in-vietnam-the-global-blockchain-congress-10th-edition-VLxmU" alt="" title="Global Blockchain Congress" target="_blank" rel="" class="">10th edition of the Global Blockchain Congress</a> that <em><strong>the convenience and speed of obtaining permits from the government would make project upgrades easier.</strong></em> There are markets that seem ideal for development, but the legal framework does not allow it, leading to a loss of time in project advancement. China is one of the countries that blocks anything related to blockchain technology. Obviously, China owns a huge number of users as well as the quality of high-level employees, but building the barrier with blockchain leads to a bad market.&nbsp;</p><p dir="ltr">Secondly, banks, which are directly involved in the movement of monetary value, also have to be active under the management of the government. Therefore, as Jimmy Nguyen, Founding President, BSV Blockchain, shared <em>"the government’s willingness to finally say here are the types of digital asset activity that we approve of in the country, here’s the license you need for certain of those activities, particularly crypto trading and the payment processing of those activities"</em> is a key factor to banks' confidence in accepting transactions from firms.</p><h2>Bottom line</h2><p dir="ltr">It can be seen that there are many factors affecting the development of a market. In addition to the factors mentioned above, investors should also consider other specific factors such as prominent trends in that market or political and social factors before making an investment decision. In some cases, investors should not strictly follow these criteria because on the blockchain, everything will change per second.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div><p><br></p>

How to find the potential blockchain market? What factors influence the development of a market? This article will tell you!

How to evaluate the potential of a blockchain market?