While there were market corrections in cryptocurrency market in 2018, everyone agrees that the best is yet to come. There were plenty of activities available in the market that have changed the tide for the better. With proper analysis and the best dose of optimism, anyone who is invested in the crypto market will make millions out of it. Cryptocurrency market is here now to keep for the long term. bitget I n this article, we give you five positive factors that will spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency in the market. It’s the most number of users and the highest value. It dominates the whole value chain of the cryptocurrency system. However, it’s not without issues. Its major bottleneck is so 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 on top of the blockchain technology, it’s possible to increase the transaction volume per second.
2. Legitimate ICOs
While there are cryptocoins with stable value available in the market, newer coins are now being created that are designed to serve a specific purpose. Coins like IOTA are meant to help the Internet Of Things market exchanging power currencies. Some coins address the matter of cybersecurity giving encrypted digital vaults for storing the money.
New ICOs are discovering innovative solutions that disrupt the existing market and make a brand new value in the transactions. They’re also gathering authority available in the market with their easy to use exchanges and reliable backend operations. They’re innovating both on the technology side regarding usage of specialized hardware for mining and financial market side giving more freedom and options to investors in the exchange.
3. Clarity on regulation
In today’s scenario, most governments are studying the impact of cryptocurrencies on the society and how its benefits can be accrued to the community at large. We can expect that there could be reasonable conclusions as per the consequence of the studies.
Few governments are actually taking the route of legalising and regulating crypto markets exactly like some other market. This may prevent ignorant retail investors from losing money and protect them from harm. Abling regulations that boost cryptocurrency growth are expected to look in 2018. This may potentially pave just how for widespread adoption in future
4. Escalation in application
There’s enormous enthusiasm for the application of blockchain technology in just about any industry. Some startups are discovering innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc. this may increase how many merchants who are ready to transact in cryptocurrencies which in turn boost how many users.
The trustworthiness of crypto assets as a transaction medium will undoubtedly be reinforced as more individuals trust in this system. While some startups might not survive, they will positively donate to the overall health of the market creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This can cause the entry of institutional investors in to the market. The inflow of substantial institutional investments will fuel the next phase of growth of the cryptomarkets. It’s captured the fancy of several banks and financial institutions.
While the surprises and bottlenecks around cryptocurrencies reduce, there will be more uptake from traditional investors. This may cause plenty of dynamism and liquidity much necessary for any growing financial markets. Cryptocurrency will become the defacto currency for transactions throughout the world.