While there has been market corrections in cryptocurrency market in 2018, everyone agrees that the best is yet to come. There were a lot of activities available in the market which have changed the tide for the better. With proper analysis and the best dose of optimism, anyone who is invested in the crypto market can make millions out of it. Cryptocurrency market will be here to keep for the long term. Here in this article, we give 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’s the maximum amount of users and the greatest value. It dominates the whole value chain of the cryptocurrency system. However, it is not without issues. Its major bottleneck is that it are designed for only six to seven transactions per seconds Goldshell LT5. In contrast, charge card transactions average at few thousands per second. Apparently, there’s scope for improvement in the scaling of transactions. With the aid of peer to peer transaction networks on the top of blockchain technology, it is possible to boost 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 created to serve a particular purpose. Coins like IOTA are meant to help the Internet Of Things market exchanging power currencies. Some coins address the issue of cybersecurity giving encrypted digital vaults for storing the money.
New ICOs are discovering innovative solutions that disrupt the existing market and generate a new value in the transactions. They are also gathering authority available in the market with their easy 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 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 may be accrued to town at large. We can 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. This can prevent ignorant retail investors from losing money and protect them from harm. Abling regulations that boost cryptocurrency growth are expected to look in 2018. This can potentially pave the way in which for widespread adoption in future
4. Increase in application
There is enormous enthusiasm for the applying of blockchain technology in just about any industry. Some startups are discovering innovative solutions such as for example digital wallets, debit cards for cryptocurrencies, etc. this will increase the amount of merchants that are prepared to transact in cryptocurrencies which boost the amount of users.
The reputation of crypto assets as a transaction medium will undoubtedly be reinforced as more individuals rely upon this system. Though some startups may not survive, they will positively contribute to the entire health of the marketplace creating competition and innovation.
5. Investment from financial institutions
Many international banks are watching the cryptocurrency scene. This will lead to the entry of institutional investors to the market. The inflow of substantial institutional investments will fuel the following phase of growth of the cryptomarkets. It’s captured the fancy of many banks and financial institutions.
Since the surprises and bottlenecks around cryptocurrencies reduce, there will be more uptake from traditional investors. This can lead to a lot of dynamism and liquidity much needed for any growing financial markets. Cryptocurrency will end up being the defacto currency for transactions throughout the world.