Although there were market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There was a lot of activity in the market that changed the trend for the better. With proper analysis and the right dose of optimism, anyone who is invested in the cryptocurrency market can make millions from it. The cryptocurrency market is here to stay in the long term. Here in this article, we provide you with five positive factors that can spur more innovation and market value in cryptocurrencies.
1. Innovation to expand
Bitcoin was 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 issues. The main hurdle is its ability to handle only six to seven transactions per second. By comparison, credit card transactions average a few thousand per second. Apparently, there is room for improvement in expanding the range of transactions. With the help of peer-to-peer transactional networks of top blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICOs
While there are digital currencies with a fixed value in the market, new currencies are created that are designed to serve a specific purpose. Coins such as IOTA aim to assist the Internet of Things market in the power currency exchange. Some coins address the problem of cybersecurity by providing encrypted digital vaults to store funds.
The new ICO offers innovative solutions that disrupt the existing market and bring new value in transactions. They also accumulate power in the marketplace through easy-to-use exchanges and reliable back-end processes. They are innovating both in the technological aspect regarding the use of specialized mining equipment and the financial market aspect by giving more freedom and options to the investors in the exchange.
3. Clarity of organization
In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits could accrue to society as a whole. We can expect that there may be reasonable conclusions based on the results of the studies.
Few governments are already taking the path of legalizing and regulating crypto markets just like any other. This will prevent ignorant retail investors from losing money and protect them from harm. Capable regulations that boost the growth of cryptocurrency are expected to emerge in 2018. This will likely pave the way for widespread adoption in the future.
4. An increase in the application
There is great enthusiasm for implementing blockchain technology in almost every industry. Some startups are creating innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc. This will lead to an increase in the number of merchants who want to deal in cryptocurrencies, which in turn leads to an increase in the number of users.
The reputation of crypto assets as a medium for transactions will be strengthened as more people trust the system. Although some startups may not survive, they will positively contribute to the overall health of the market creating competition and innovation.
5. Investing from financial institutions
Many international banks are watching the cryptocurrency scene. This can lead to institutional investors entering the market. The influx of large institutional investments will fuel the next phase of growth in the cryptocurrency market. She has captured the whim of many banks and financial institutions.
With fewer surprises and bottlenecks around cryptocurrencies, there will be more acceptance by traditional investors. This will lead to a lot of dynamism and much-needed liquidity for any growing financial markets. The cryptocurrency will become the de facto currency for worldwide transactions.