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 in the market that have changed the tide for the better. With proper analysis and the right dose of optimism, anyone who is invested in the crypto market can make millions out of it. Cryptocurrency market is here to stay 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 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 issues. Its major bottleneck is that it can handle only six to seven transactions per seconds. In comparison, credit card transactions average at few thousands per second. Apparently, there is scope for improvement in the scaling of transactions. With the help of peer to peer transaction networks on top of the blockchain technology, it is possible to increase the transaction volume per second.
2. Legitimate ICOs
While there are cryptocoins with stable value in the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are intended to help the Internet Of Things market exchanging power currencies. Some coins address the issue of cybersecurity by giving encrypted digital vaults for storing the money.
New ICOs are coming up with innovative solutions that disrupt the existing market and bring in a new value in the transactions. They are also gathering authority 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 by 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 can be accrued to the community at large. We can expect that there may be reasonable conclusions as per the result of the studies.
Few governments are already taking the route of legalising and regulating crypto markets just like any other market. This will 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 virtually every industry. Some startups are coming up with 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 in turn boost the number of users.
The reputation of crypto assets as a transaction medium will be reinforced as more people trust in this system. Although some startups may not survive, they will positively contribute to the overall health of the market creating competition and innovation.