While there have been market corrections in cryptocurrency market in 2018, everyone agrees that the most effective is yet to come. There has been plenty of activities on the market which have changed the tide for the better. With proper analysis and the right dose of optimism, anyone who's dedicated to the crypto market will make millions out of it. Cryptocurrency market is here now to stay for the long term. In this article, we give you five positive factors that may spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency in the market. It has the most amount of users and the highest value. It dominates the whole 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. In contrast, charge 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 improve the transaction volume per second.
2. Legitimate ICOs
While you can find cryptocoins with stable value on the market, newer coins are being created that are designed to serve a certain 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 discovering innovative solutions that disrupt the existing market and bring in a fresh value in the transactions. They are also gathering authority on 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 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 are able to expect that there may be reasonable conclusions according to caused by the studies. Few governments already are taking the route of legalising and regulating crypto markets the same as any other market Cryptocurrency. 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 in which 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 for instance digital wallets, debit cards for cryptocurrencies, etc. this may increase how many merchants that are ready to transact in cryptocurrencies which in turn boost how many users. The trustworthiness of crypto assets as a transaction medium is likely to be reinforced as more folks rely upon this system. Though some startups might not survive, they'll positively donate to the general health of the market creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This will cause the entry of institutional investors into the market. The inflow of substantial institutional investments will fuel another phase of growth of the cryptomarkets. It has captured the fancy of several banks and financial institutions. As the surprises and bottlenecks around cryptocurrencies reduce, there could be more uptake from traditional investors. This may cause plenty of dynamism and liquidity much necessary for any growing financial markets. Cryptocurrency will become the defacto currency for transactions all around the world.