Over the current rising issues of COVID-19, many business places have either been forced to shut down, downsize, or have asked their employees to work from home. Unlike some, many people worldwide are facing hardship in terms of their financial situation, and working from home isn’t an option. Under the turmoil of trying to understand how to streamline business operations without risking oneself to the virus’s outbreak, many are turning towards digital currency.
The major consideration rose when Chainalysis deployed a project for the FBI, consisting of a software contract for about $9,000 in 2015. Today, GSA or Federal contracting has steadily increased, creating a whole new market for the Cryptocurrency industry.
According to a publication from Whitehouse.gov, a paper was issued in August 2019 describing the potential trend in federal and governmental spending. The paper further identified the major trends in the spending patterns, which appoints towards inflation. The Department of Defense and other governmental agencies spent the following in the last 3-4 years:
|Sector / Agency||2016||2017||2018|
|Department of Defense||38,061||40,844||42,521|
|Non- Defense Agencies||52,219||53,250||53,168|
With the upturn demand with merging technologies that introduce CYBER, CLOUD, AI, and now Cryptocurrencies, Federal software spending has grown substantially by 15%, to $9.1 billion.
With a huge contribution from Pentagon’s Defense Healthcare Management System Modernization (DHMSM) and about half a billion on new commercial software purchases on SEWP V, the demand for federal contracting is sky-rocket-high. But that’s not all; the government is also interested in IT Hardware, Consultation, and outsourcing.
In the fiscal year of 2019, GSA contracts for IT hardware supply and demand grew by about 2.2%, with mostly small and medium-sized businesses accounting for much of that growth. With hardware requirements and obligations, CISA (Cybersecurity and Infrastructure Security Agency) rose to $200 million during fiscal 2019, which is an increment of about a huge 66%.
Consultation, of course, is by far a necessity, and therefore no business can proceed without one. The federal and local governments’ analysis and acquisition requirements rose by about 20% in the defense sector.
Outsourcing has always been a primary method to save an extra buck. The government to outsource a range of IT services, including management and system integration, all increased about 7% in small and medium-sized agencies, while a retained deflation continued at the DOD. Collectively, projects associated with the 2020 Census have aided the interest in the Commerce Department’s IT outsourcing, responsible for about 80% to a rough estimation of about $1.8 billion from the fiscal year of 2018 till 2019.
According to federal spending, exceptional growth took place during the fiscal year of 2019, a sharp increase of about 22%, with most projects required by the ARMY, DISA, and US Immigration and Customer Enforcement (ICE), and USCIS (US Citizenship and Immigration Services.
While Chainalysis remain ahead of most of the competition, it is due to the lack of agencies that provide government agencies or federal agencies. Under the scope of such, it is ideal to consider the verticals of striking a GSA contract, which can be valuable in the long run.
Although the local markets may be experiencing a downturn, some markets still hold hope, especially those specializing in providing solutions and/or software applications for one or more of the aforementioned sectors related to information technology.
About the WashingtonPost, the majority of the United States economy was held together through small and medium-sized businesses. According to the Post, although Congress has guaranteed a budget allocation of $700 B in hopes of supporting them, the thoughtful consideration may not be substantial for the long if the virus continues to thrive. Instead, small and medium-sized businesses ought to consider the verticals of cryptocurrency association alongside their business structures, respectively, to survive the 2020 and the unknown 2021 year to yet approach.
While the pandemic situation nearly has the world in quarantine, the possibilities of streamlining new means of revenue could be situated in with Federal and local governmental contracting. Usually, such contracts are summoned for several years, with about six months at a minimum per contractual term. Like Chainalysis, the business enthusiast should consider diving into the realm of deploying Cryptocurrency services to government and federal agencies, as it is a solid solution to sustaining and further business expansion towards growth.