Although there were market adjustments in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There were many activities in the market that changed the tide for the better. With proper analysis and the right dose of optimism, anyone who is invested in the crypto market can earn millions from it. The cryptocurrency market is here to stay in the long run. Here in this article, we give you five positive factors that can stimulate 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 narrow is that it can process only 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 volume of transactions per second.
2. Legitimate ICOs
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. Some coins solve the problem of cybersecurity by providing encrypted digital repositories for storing money.
The new ICOs offer innovative solutions that disrupt the existing market and add new value to transactions. They also gain market credibility with their easy-to-use exchanges and reliable backend operations. They innovate both technologically in terms of the use of specialized mining hardware and on the part of the financial market, providing more freedom and opportunities to investors in the stock market.
3. Clarity regarding regulation
In the current scenario, most governments study the impact of cryptocurrencies on society and how its benefits can be reaped for the community as a whole. We can expect that there may be reasonable conclusions based on the results of the research.
Few governments are already embarking on the path of legalizing and regulating crypto markets, like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. Regulations are expected to appear in 2018 to accelerate the growth of cryptocurrencies. This will potentially pave the way for widespread use in the future
4. Increase the application
There is a huge enthusiasm for the application of blockchain technology in almost every industry. Some start-ups offer innovative solutions such as digital wallets, cryptocurrency debit cards and more.
The reputation of crypto assets as a transaction environment will be strengthened as more people trust this system. Although some start-ups may not survive, they will make a positive contribution to the overall health of the market by creating competition and innovation.
5. Investments from financial institutions
Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of significant institutional investment will fuel the next phase of cryptomarket growth. It has captured the imagination of many banks and financial institutions.
As surprises and bottlenecks around cryptocurrencies diminish, there will be more absorption from traditional investors. This will lead to the great dynamism and liquidity needed for growing financial markets. The cryptocurrency will become the de facto currency for transactions around the world.