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 in the market which have changed the tide for the better. With proper analysis and the right dose of optimism, anyone who is invested in the crypto market can make millions from it. Cryptocurrency market is here to remain for the long term. Within this article, we give you five positive factors that may spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency available in the market. It has the maximum amount of users and the best value. It dominates the complete value chain of the cryptocurrency system. However, it isn’t without issues. Its major bottleneck is that it could handle only six to seven transactions per seconds. In comparison, charge card transactions average at few thousands per second. Apparently, there’s scope for improvement in the scaling of transactions. With the aid of peer to peer transaction networks along with the blockchain technology, you’ll be able to increase the transaction volume per second.
2. Legitimate ICOs
While you can find cryptocoins with stable value available in the market, newer coins are increasingly being created that are designed to serve a specific purpose. Coins like IOTA are designed to help the Internet Of Things market exchanging power currencies. Some coins address the problem of cybersecurity by 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 new value in the transactions. They are also gathering authority in the market with their simple to operate exchanges and reliable backend operations. digital currency are innovating both on the technology side regarding using 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 most importantly. We can expect that there may be reasonable conclusions as per the result of the studies.
Few governments are already taking the route of legalising and regulating crypto markets exactly like any other market. This will prevent ignorant retail investors from losing profits and protect them from harm. Abling regulations that boost cryptocurrency growth are expected to appear in 2018. This can 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 trustworthiness of crypto assets as a transaction medium will undoubtedly be reinforced as more people trust in this system. Although some startups may not survive, they will positively contribute to the entire health of the marketplace creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This can 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 many banks and financial institutions.