While there have been market corrections in cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been a lot of activities on the market that have changed the tide for the higher. With proper analysis and the proper dose of optimism, anyone who is invested in the crypto market can make millions out of it. Cryptocurrency market is here to remain for the long term. Here in this article, we offer you five positive factors that can spur further innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency in the market. It has the maximum number of users and the highest value. It dominates the complete value chain of the cryptocurrency system. However, it is not without issues. Its major bottleneck is that it can handle only six to seven transactions per seconds. Compared, credit card transactions average at few thousands per second. Apparently, there is scope for improvement in the scaling of transactions. By using peer to peer transaction networks along with the blockchain technology, you’ll be able to raise the transaction volume per second.
2. Legitimate ICOs
While there are cryptocoins with stable value available in the market, newer coins are being created that are designed to serve a particular purpose. Coins like IOTA are intended 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 amount of money.
New ICOs are discovering 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 simple to operate exchanges and reliable backend operations. They’re 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 most importantly. We can expect that there could be reasonable conclusions as per the result of the studies.
Few governments are already taking the route of legalising and regulating crypto markets exactly 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 expected to appear in 2018. This will potentially pave the way for widespread adoption in future
4. Increase in application
There is enormous enthusiasm for the application 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 willing to transact in cryptocurrencies which boost the amount of users.
The trustworthiness 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 may result in the entry of institutional investors in to the market. The inflow of substantial institutional investments will fuel the next phase of growth of the cryptomarkets. It has captured the fancy of many banks and financial institutions.