While there has been 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 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 could make millions out of it. Cryptocurrency market is here to keep for the long term. In this short article, we give you five positive factors that could spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the very first cryptocurrency in the market. It has the most amount of users and the greatest value. It dominates the entire value chain of the cryptocurrency system. However, it’s not without issues. Its major bottleneck is that it are designed for only six to seven transactions per seconds Goldshell LT5 Dogecoin. In comparison, bank card transactions average at few thousands per second. Apparently, there is scope for improvement in the scaling of transactions. With assistance from 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 you will find cryptocoins with stable value in the market, newer coins are being created that are made 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 money.
New ICOs are coming up with innovative solutions that disrupt the prevailing market and bring in a new value in the transactions. They are also gathering authority in the market making use of their simple to use exchanges and reliable backend operations. They are innovating both on the technology side regarding usage of 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 present scenario, most governments are studying the impact of cryptocurrencies on the society and how its benefits can be accrued to town at large. We can expect that there could be reasonable conclusions according to caused by the studies.
Few governments already are taking the route of legalising and regulating crypto markets exactly like any 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 seem in 2018. This may potentially pave the way for widespread adoption in future
4. Upsurge in application
There’s enormous enthusiasm for the applying of blockchain technology in virtually every industry. Some startups are coming up with innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc. this can increase the amount of merchants that are prepared to transact in cryptocurrencies which often boost the amount of users.
The reputation of crypto assets as a transaction medium will undoubtedly be reinforced as more folks rely upon this system. Though some startups may not survive, they will positively donate to the overall health of industry 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 in to the market. The inflow of substantial institutional investments will fuel the next phase of growth of the cryptomarkets. It has captured the fancy of numerous banks and financial institutions.
While the surprises and bottlenecks around cryptocurrencies reduce, there will be more uptake from traditional investors. This may result in a lot of dynamism and liquidity much needed for any growing financial markets. Cryptocurrency will become the defacto currency for transactions all over the world.