While there were market corrections in cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been a lot of activities on the market which have changed the tide for the higher. With proper analysis and the proper dose of optimism, anyone who’s committed to the crypto market could make millions out of it. Cryptocurrency market is here to remain for the long term. Within this article, we offer you five positive factors that can spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency in the market. It has the maximum amount of users and the best value. It dominates the entire value chain of the cryptocurrency system. However, it is not without issues. Its major bottleneck is that it can handle only six to seven transactions per seconds. In comparison, credit card transactions average at few thousands per second. Apparently, there’s scope for improvement in the scaling of transactions. With the help of peer to peer transaction networks along with the blockchain technology, it is possible to raise the transaction volume per second.
2. Legitimate ICOs
While there are cryptocoins with stable value available in the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are designed to help the web Of Things market exchanging power currencies. Some coins address the problem of cybersecurity giving encrypted digital vaults for storing the amount of money.
New ICOs are discovering innovative solutions that disrupt the existing market and bring in a fresh value in the transactions. They are also gathering authority in the market with their simple to use exchanges and reliable backend operations. They are innovating both on the technology side regarding using specialized hardware for mining and financial market side by giving more freedom and options to investors in the exchange.
3. Clarity on regulation
In the current scenario, most governments are studying the impact of cryptocurrencies on the society and how its benefits could be accrued to the community most importantly. We can expect that there may be reasonable conclusions as per the consequence of the studies.
Few governments already are taking the route of legalising and regulating crypto markets just like any other market. This can prevent ignorant retail investors from losing money and protect them from harm. Abling regulations that boost cryptocurrency growth are expected to appear in 2018. This will potentially pave the way for widespread adoption in future
4. Increase in application
There’s enormous enthusiasm for the application of blockchain technology in virtually every industry. Some startups are discovering innovative solutions such as for example digital wallets, debit cards for cryptocurrencies, etc. this will increase the number of merchants who are ready to transact in cryptocurrencies which in turn boost the amount of users.
The reputation of crypto assets as a transaction medium will be reinforced as more people rely upon this system. Although some startups may not survive, they will positively contribute to the overall health of the marketplace creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This may result in the entry of institutional investors into the market. The inflow of substantial institutional investments will fuel the next thing of growth of the cryptomarkets. It has captured the fancy of several banks and financial institutions.