While there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many activities in the market that have changed the tide for the better. With the right analysis and the right dose of optimism, anyone who is invested in the crypto market can make millions. The Cryptocurrency market is here to stay for the long term. Here in this article, we give you five positive factors that can stimulate more innovation and market value in cryptocurrencies.
1. Innovation at scale
Bitcoin is the first cryptocurrency in 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 problems. Its biggest bottleneck is that it can only handle six to seven transactions per second. In comparison, credit card transactions average a few thousand per second. Apparently, there is room to improve the scale of transactions. With the help of peer to peer transaction networks on top of blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICOs
While there are cryptocurrencies with a stable value in the market, newer coins are created that are designed to serve a specific purpose. Coins like IOTA are intended to help the Internet Of Things market to exchange power currencies. Some currencies address the issue of cyber security by providing digital vaults to store money.
New ICOs come with innovative solutions that disrupt the existing market and bring new value in transactions. They are also gathering authority in the market with their easy-to-use exchanges and reliable backend operations. They innovate both on the technology side in terms of the use of specialized hardware for mining and the financial market, giving more freedom and options to investors in the exchange.
3. Clarity on the regulation
In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits can accrue to the community at large. We can expect that there can be reasonable conclusions according to the results of the studies.
Few governments have already taken the path of legalizing and regulating crypto markets like any other market. This prevents ignorant retail investors from losing money and protects them from harm. Abling regulations that increase the growth of cryptocurrency are expected to appear in 2018. This may pave the way for widespread adoption in the future.
4. Increased application
There is huge enthusiasm for the application of blockchain technology in almost every industry. Some startups are coming up with innovative solutions such as digital wallets, cryptocurrency debit cards, etc., this will increase the number of merchants who are willing to transact in cryptocurrency which in turn will increase the number of users.
The reputation of crypto assets as a means of transaction will be strengthened as more people trust this system. Although some startups may not survive, they contribute positively to the overall health of the market by creating competition and innovation.
5. Investment by financial institutions
Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors in the market. The influx of substantial institutional investments will fuel the next phase of cryptomarkets growth. It has captured the fancy of many banks and financial institutions.
As the surprises and bottlenecks around cryptocurrencies are reduced, there will be more adoption by traditional investors. This will bring much-needed dynamism and liquidity to any growing financial markets. Cryptocurrency will become the defacto currency for transactions all over the world.