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 turned the tide for the better. With proper analysis and the right dose of optimism, anyone who invests in the crypto market can earn millions from it. The cryptocurrency market is here to stay for the long haul. Here in this article, we bring you five positive factors that can spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
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 its problems. Its main bottleneck is that it can only handle six to seven transactions per second. By comparison, credit card transactions average a few thousand per second. There appears to be room for improvement in transaction escalation. With the help of peer-to-peer transaction networks in addition to blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICOs
While there are cryptocurrencies with a stable value on the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are meant to help the Internet of Things market to exchange power coins. Some coins address the cybersecurity problem by providing encrypted digital vaults to store money.
New ICOs are emerging with innovative solutions that disrupt the existing market and bring new value in transactions. They are also gaining authority in the market with their easy to use exchanges and reliable backend trading. They are innovating both on the technological side regarding the use of specialized hardware for mining and in the financial market by giving more freedom and choice to investors on the exchange.
3. Clarity in regulation
In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits for the community at large can be increased. We can hope that there can be reasonable conclusions based on the results of the studies.
Few governments are already taking the route of legalizing and regulating crypto markets like any other market. This will prevent retail investors from losing money and protect them from harm. Enabling regulations that fuel the growth of cryptocurrencies are expected to appear in 2018. This will potentially pave the way for widespread adoption in the future.
4. Increased application
There is tremendous enthusiasm for the application of blockchain technology in virtually every industry. Some startups are coming up with innovative solutions like digital wallets, debit cards for cryptocurrencies, 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 new companies may not survive, they will contribute positively to the overall health of the market by creating competition and innovation.
5. Investment by financial entities
Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of substantial institutional investment will fuel the next phase of growth for crypto markets. It has caught the fancy of many banks and financial institutions.
As the surprises and bottlenecks around cryptocurrencies reduce, there will be more acceptance by traditional investors. This will generate a lot of dynamism and liquidity, much needed for any growing financial market. The cryptocurrency will become the de facto currency for transactions around the world.
