While there were buy 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 higher. With proper analysis and the right dose of optimism, anyone who is committed to the crypto market could make millions from it. Cryptocurrency market is here to remain 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 highest value. It dominates the entire 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. 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 there are cryptocoins with stable value on the market, newer coins are being created that are designed to serve a particular purpose. Coins like IOTA are designed to help the web Of Things market exchanging power currencies. Some coins address the problem of cybersecurity giving encrypted digital vaults for storing the money.
New ICOs are coming up with innovative solutions that disrupt the existing market and bring in a fresh value in the transactions. Also, they are gathering authority on the market with their convenient 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 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 consequence 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 anticipated 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 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 can increase the amount 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’ll positively contribute to the overall health of the marketplace 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 thing of growth of the cryptomarkets. It has captured the fancy of many banks and financial institutions.