While there were market corrections in cryptocurrency market in 2018, everyone agrees that the very best is yet to come. There were a lot of activities available in the market which have changed the tide for the higher. With proper analysis and the right dose of optimism, anyone who’s invested in the crypto market can make millions from it. Cryptocurrency market is here to stay for the long term. Here in this article, we give you five positive factors that can spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin may be the first cryptocurrency on 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, credit card transactions average at few thousands per second. Apparently, there is scope for improvement in the scaling of transactions. Through the help of peer to peer transaction networks along with the blockchain technology, it is possible to raise 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 particular 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 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 by 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 could be accrued to the community at large. We can expect that there may be reasonable conclusions as per the result of the studies.
Few governments already are taking the route of legalising and regulating crypto markets exactly like any other market. This can prevent ignorant retail investors from losing profits and protect them from harm. Abling regulations that boost cryptocurrency growth are anticipated to appear in 2018. This will potentially pave the way for widespread adoption in future
4. Increase in application
There’s enormous enthusiasm for the use of blockchain technology in just about any industry. Some startups are discovering innovative solutions such as 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 reputation of crypto assets as a transaction medium will be reinforced as more people rely upon this system. Even though some startups may not survive, they will positively contribute 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 lead to the entry of institutional investors into the market. The inflow of substantial institutional investments will fuel the next phase of growth of the cryptomarkets. Bitcoin Cash Token has captured the fancy of several banks and financial institutions.