Whether there were any corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many actions in the market that have changed the tide for the better. With the right amount of analysis and optimism, anyone investing in the crypto market can make millions. The cryptocurrency market is here to stay. In this article, we give you five positive factors that can drive further innovation in cryptocurrencies և market value.
1. Innovation in scaling
Bitcoin is the first cryptocurrency on the market. It has the maximum number of users և the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main drawback is that it can make only six to seven transactions per second. By comparison, credit card transactions average several thousand per second. Apparently, there is an opportunity to improve the scale of transactions. With the help of blockchain transaction networks, it is possible to increase the volume of transactions per second.
2. Legal ICOs
While there are cryptocurrencies of stable value in the market, newer coins are being created to serve a specific purpose. Coins, such as IOTA, are designed to help the Internet Of Things market exchange energy currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.
New ICOs come up with innovative solutions that disrupt the existing market and bring new value to transactions. They also gain prestige in the market with their easy-to-use exchanges and reliable background operations. They innovate both in technology and in mining, using specialized equipment for the financial market, giving investors more freedom in exchange options.
3. Clarity of regulation
In the current scenario, most governments are exploring the impact of cryptocurrencies on society and how their benefits can be accumulated in the community as a whole. One can expect reasonable conclusions from the results of the studies.
Few governments are already on the path to legalizing and regulating crypto markets, like any other market. This will prevent illiterate retailers from losing money and protect them from harm. It is expected that the possible regulations that stimulate the growth of cryptocurrencies will appear in 2018. This will potentially pave the way for widespread use in the future.
4. Increased usage
There is tremendous excitement in the application of blockchain technology in almost every field. Some startups come up with innovative solutions, such as digital wallets, cryptocurrency debit cards, and more. This will increase the number of traders who are willing to trade in cryptocurrencies, which in turn will increase the number of users.
The reputation of crypto assets as a means of transactions will be strengthened as more people trust this system. Or some startups can not survive, they will positively contribute to the overall health of the market by creating competition and innovation.
5. Investments from financial institutions
Many international banks are following the cryptocurrency scene. This can lead to institutional investors entering the market. The influx of significant institutional investment will contribute to the next phase of cryptocurrency growth. It has captured the imagination of many banks and financial institutions.
As the number of surprises and barriers around cryptocurrencies decreases, there will be more absorption by traditional investors. This will lead to the great dynamism and liquidity needed for any growing financial market. Cryptocurrency will become the de facto currency of transactions all over the world.