3 Ways to Hibernate Cloud Costs During this Crypto Winter

If this looming recession is teaching us anything, it’s that the cryptocurrency market is not the hedge that we believed it to be. 

The Federal Reserve Bank of America raised interest rates to levels that have not been seen in nearly 30 years (since 1994) causing inflation to rise 9.1% in June alone. How did the crypto market fare? Prices dropped to their lowest levels this year, at one point, losing $600 billion in just a week.  

As it turns out, in times of uncertainty the perceived volatility of the crypto market trumps any perceived value of its decentralization. Many investors are pulling their funds out of their crypto accounts and placing their money, as always, in more stable markets such as U.S. treasury bonds or gold. 

So what does this mean for Cryptocurrency businesses’ cloud costs, trying to reduce their overhead during this economic uncertainty? The withdrawal of crypto funds has resulted in low market activity. Investors are trading far less frequently than what they were. For cryptocurrency exchangers that base their revenue off a percentage fee for every transaction, this low market activity not only means less profit but a lot of wasted spend as pre-paid cloud compute infrastructure and resources go unused.  

While the option to roll it all back and hibernate cloud infrastructure throughout this crypto winter seems like the obvious solution, it’s not so easy. You need to forecast how long this winter will last, and how bad it might get. But with inflation increasing at higher rates than what they’ve been throughout the life of the cryptocurrency market, the unprecedented situation makes this a difficult calculation to make.

There’s no denying that the circumstances behind the crypto crisis are difficult. But there are some ways businesses can try and overcome these challenges.