Although 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 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 on it. The cryptocurrency market is here to stay long term. Here in this article, we give 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 problems. Its main bottleneck is that it can only process six to seven transactions per second. By comparison, credit card transactions average several thousand per second. Obviously, there is room for improvement in transaction scaling. With the help of peer-to-peer transaction networks on top of blockchain technology, it is possible to increase the number of transactions per second.
2. Legitimate ICO
Although there are cryptocurrencies on the market with a stable value, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA aim to help the Internet of Things market by exchanging currencies of power. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.
New ICOs devise innovative solutions that disrupt the existing market and bring new value in transactions. They also gather market authority through their easy-to-use exchanges and reliable background operations. They also innovate on the technological side in terms of the use of specialized mining hardware and in the financial market, giving more freedom and opportunities to investors in exchange.
3. Clarity of regulation
In the current scenario, most governments study the impact of cryptocurrencies on society and how its benefits can be attributed to the wider community. We can expect that there may be reasonable conclusions from the study results.
Several governments are already moving towards legalizing and regulating the crypto market like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. Regulations that encourage the growth of cryptocurrencies are expected to appear in 2018. This will potentially pave the way for broad adoption in the future
4. Increase application
There is tremendous enthusiasm for the application of blockchain technology in almost every industry. Some startups devise innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc., this will increase the number of traders who are willing to perform transactions in cryptocurrencies, which in turn increases the number of users.
The reputation of crypto assets as a transactional medium will be strengthened as more people believe in this system. While some startups may not survive, they will positively contribute to overall market health by creating competition and innovation.
5. Investment of financial institutions
Many international banks are watching the cryptocurrency scene. This can lead to institutional investors entering the market. The influx of significant institutional investment will spur the next phase of crypto market growth. It captured the imagination of many banks and financial institutions.
As surprises and bottlenecks around cryptocurrencies diminish, they will be increasingly accepted by traditional investors. This will lead to the great dynamism and liquidity indispensable for any growing financial markets. Cryptocurrency will become the de facto currency for transactions worldwide.