While there were market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There were a lot of activities in the market that changed direction for the better. With proper analysis and the right dose of optimism, anyone who invests in the cryptocurrency market can make millions from it. The cryptocurrency market is here to stay for the long term. Here in this article, we bring you five positive factors that can stimulate more innovation and market value in cryptocurrencies.
1. Innovation in expansion
Bitcoin is the first cryptocurrency on the market. It has the maximum number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without issues. The main obstacle is its ability to handle only six to seven transactions per second. By comparison, credit card transactions average a few thousand per second. Apparently, there is room for improvement in scaling transactions. With the help of peer-to-peer transaction networks on top of the blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICOs
While there are digital currencies with a fixed value in the market, new ones are created that are designed to serve a specific purpose. Coins like IOTA aim to help the Internet of Things market exchange power coins. Some coins address the problem of cybersecurity by giving encrypted digital vaults to store money.
The new ICO creates innovative solutions that disrupt the existing market and bring new value in transactions. They also amass power in the marketplace through easy-to-use exchanges and reliable back-end processes. They are innovating both in the technological aspect regarding the use of specialized hardware for mining and the financial market aspect by giving more freedom and options to the investors in the stock exchange.
3. Clarity about regulation
In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits can accrue to society as a whole. We can expect that there may be reasonable conclusions according to the results of the studies.
Few governments are actually taking the path of legalizing and regulating crypto markets quite like any other. This will prevent ignorant retail investors from losing money and protect them from harm. Capable regulations that will boost cryptocurrency growth are expected to emerge in 2018. This is likely to pave the way for its widespread adoption in the future.
4. Increase in the application
There is great enthusiasm for the application of blockchain technology in almost every industry. Some startups come up with innovative solutions like digital wallets, debit cards for cryptocurrency, etc. This will increase the number of merchants willing to deal in cryptocurrency which in turn will increase the number of users.
The reputation of crypto assets as a transaction medium will be enhanced as more and more people trust this system. Although some startups may not survive, they will contribute positively to the overall health of the market creating competition and innovation.
5. Investment from financial institutions
Several international banks are keeping an eye on the cryptocurrency scene. This could lead to institutional investors entering the market. The influx of significant institutional investment will fuel the next phase of the growth of the cryptocurrency markets. It has captured the imagination of many banks and financial institutions.
With fewer surprises and bottlenecks around cryptocurrencies, there will be more appetite from traditional investors. This will lead to a lot of much needed dynamism and liquidity for any growing financial markets. Cryptocurrency will become the de facto currency for transactions around the world.