Although there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many activities in the market that have changed the tide for the better. With the right analysis and the right dose of optimism, anyone who is invested in the crypto market can earn millions of it. The cryptocurrency market is here to stay in the long run. Here in this article, we give you five positive factors that can spur further innovation and the market value of cryptocurrencies.
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 in 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, average credit card transactions are several thousand per second. Obviously, there is room for improvement in transaction scaling. With the help of peer to peer transaction networks at the top of blockchain technology, it is possible to increase the volume of transactions per second.
2. Legitimate ICO
Although there are cryptococins on the market with a stable value, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are meant to help the Internet of Things market in the exchange of power currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.
The new ICOs come with innovative solutions that disrupt the existing market and bring new value in transactions. They also gather market authority through their easy-to-use exchanges and reliable backend operations. They are innovating both on the technological side in terms of the use of specialized hardware for mining and on the side of the financial market, giving more freedom and opportunities to investors in exchange.
3. Clarity of regulation
In the current scenario, most governments are studying the impact of cryptocurrencies on society and how its benefits can be realized for the community as a whole. We can expect reasonable conclusions from the study results.
Several governments are already going through the legalization and regulation of the crypto market like any other market. This will prevent uninformed retail investors from losing money and protect them from harm. Appropriate regulations that promote cryptocurrency growth are expected to appear in 2018. This will potentially pave the way for widespread adoption in the future
4. Increase application
There is tremendous enthusiasm for the application of blockchain technology in almost every industry. Some startups come with innovative solutions such as digital wallets, cryptocurrency debit cards, etc. This will increase the number of merchants willing to conduct transactions in cryptocurrencies which in turn increases the number of users.
The reputation of crypto assets as a transaction medium will be strengthened as more and more people trust this system. While some startups may not survive, they will make a positive contribution to overall market health by creating competition and innovation.
5. Investments of 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 spur the next phase of crypto market growth. He has occupied many banks and financial institutions.
As surprises and bottlenecks around cryptocurrencies diminish, traditional investors will increasingly accept. This will lead to a lot of dynamism and liquidity that is necessary for all growing financial markets. The cryptocurrency will become the de facto currency for transactions around the world.