Although there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There has been a lot of activity in the market that has changed the tide for the better. With proper analysis and the right dose of optimism, anyone invested in the crypto market can make millions from it. The cryptocurrency market is here to stay for the long term. Here in this article, we give you five positive factors that can drive further innovation and market value in cryptocurrencies.
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1. Innovation in scaling
Bitcoin is the first cryptocurrency on the market. It has the maximum number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main bottleneck is that it can only process six to seven transactions per second. By comparison, credit card transactions average several thousand per second. There is clearly room for improvement in transaction scaling. Using peer to peer transaction networks on blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICOs
While there are stable value cryptocurrencies on the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are designed to help the Internet of Things market to exchange hard currencies. Some coins solve the cybersecurity problem by providing encrypted digital vaults to store the money.
New ICOs come with innovative solutions that disrupt the existing market and bring new value to transactions. They also gather authority in the market with their easy-to-use exchanges and reliable backend operations. They are innovating both on the technology side in terms of using specialized mining hardware, and on the financial markets side, giving more freedom and options to investors in the exchange.
3. Clarity of regulation
In the current scenario, most governments are looking into the impact of cryptocurrencies on society and how their benefits can accrue to the community at large. We can expect that there can be reasonable conclusions according to the results of the studies.
Few governments are already taking the path of legalizing and regulating crypto markets like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. Appropriate regulations are expected to emerge in 2018 that stimulate the growth of cryptocurrency. This will potentially pave the way for widespread distribution in the future
4. Increase the application
There is huge enthusiasm for the application of blockchain technology in almost every industry. Some startups are coming up with innovative solutions like digital wallets, cryptocurrency debit cards, etc. This will increase the number of merchants willing to transact with cryptocurrencies, which in turn increases the number of users.
The reputation of crypto assets as a transaction medium will be enhanced as more people trust this system. While some startups may not survive, they will contribute positively to the overall health of the market by creating competition and innovation.
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5. Investments from financial institutions
Many international banks are watching the cryptocurrency scene. This could lead to institutional investors entering the market. The influx of significant institutional investment will fuel the next phase of cryptomarket growth. It has attracted the attention of many banks and financial institutions.
As the surprises and difficulties surrounding cryptocurrencies diminish, there will be greater uptake by traditional investors. This will bring a lot of dynamism and liquidity, much needed for all growing financial markets. Cryptocurrency will become the defacto currency for transactions worldwide.