While there were market corrections in cryptocurrency market in 2018, everyone agrees that the very best is yet to come. There have been a lot of activities on the market that have changed the tide for the better. With proper analysis and the proper dose of optimism, anyone who is committed to the crypto market can make millions from it. Cryptocurrency market is here to remain for the long term. Within 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 in 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 can handle only six to seven transactions per seconds. In comparison, credit card transactions average at few thousands per second. Apparently, there’s scope for improvement in the scaling of transactions. By using peer to peer transaction networks on top of the blockchain technology, you’ll be able to raise the transaction volume per second.
2. Legitimate ICOs
While there are cryptocoins with stable value in the market, newer coins are being created that can 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 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. Also, they are gathering authority in the market with their easy to use exchanges and reliable backend operations. They’re innovating both on the technology side regarding using 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 current 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 are already taking the route of legalising and regulating crypto markets just like any other market. This can prevent ignorant retail investors from losing money and protect them from harm. Abling regulations that boost cryptocurrency growth are anticipated to appear in 2018. This can potentially pave just how for widespread adoption in future
4. Increase in application
There is enormous enthusiasm for the application of blockchain technology in virtually every 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 number 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 market creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This can result in 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 several banks and financial institutions.