If 2017 was a year of assumptions, then 2018 will signify exponential increase for cryptocurrencies and blockchain technology. 2018 began like a massacre, with new investors, filled with bubbling exuberance, who, on witnessing a Titanic plunge of prices got terrified and scuttled right out of the trading market.
However, the good news is, the rest of 2018 will not be so prone to the volatility of these digital assets. There will be strict government policies and technologically aware investors to trade with prudence and make profits. There are 8 reasons for 2018 to succeed over 2017 in terms of cryptocurrency trading and blockchain.
Legitimately Scaled Solutions
Bitcoin is the most popular and widely traded and invested cryptocurrency. Bitcoin has implemented a protocol called “Segregated-Witness” which permits a 100% more transactions in a second. This has greatly reduced the transaction cost and speeded up the process of transactions. The Lightning Network has been launched that has decreased the cost of the transaction of Bitcoin almost to zero with an indefinite increase in scalability and increase in capacity.
Legit ICO contending against IPO market
2017 saw the rise of ICOs of which several were fraudulent and others had neither markets nor products to work on for months’ end. In 2018, owners of ICOs will be profit-making companies seeking to mint cryptocurrency coins or raise funds for new projects by distributing financial tokens. It is quite expensive to maintain an IPO market whereas an ICO requires no substantial fees nor funding for its operation. Currently, Telegram is the largest ICO, that has assembled over 800 million dollars, followed by a casino in Asia. Dra
Cryptocurrency trading has disrupted the banking infrastructure so much that governments of several nations have cracked down upon cryptocurrencies. But many banks have begun employing blockchain technology and cryptocurrencies for their own benefits. Banco-Santander uses the XRP algorithm to conduct transactions amongst countries. Countries such as South Korea, USA, Japan and Australia are tightening the regulations instead of slapping an outright ban on crypto.
Increasing usage of cryptocurrency coins
The actual value of cryptocurrency coins is created by its increasing utility and acceptance. Monero is highly valued because it can be transacted in with secure confidentiality. Bitcoin is famous for its brand value and for being the first cryptocurrency coin launched in the market. Ethereum boomed for purchasing into ICOs. Growing acceptance and utility creates a long-standing value as compared to a mere tweet from an investor or expert.
There are several trading ventures and companies whose market cap value is greater than every cryptocurrency combined. When this institutional crypto currency flows into the trading space for the sheer quantities of it, the sum total value of market cap skyrockets dramatically.
Discussions and c0nferences not only introduce cryptocurrencies to the enthusiasts but also provides a platform for budding ICOs to establish their marketplace and theories. Conferences furnish the masses with opportunities for education in Blockchain technology and other latest advancements while adding more electronic money into the crypto market sector.
Communal sentiment plays a significant role. When the prices of cryptocurrencies shot up to the sky, investors poured in from all sides to make 100% profits from their investments. But when the prices fell a little and a loss was incurred, investors fled the market causing a major crash in prices. This sentiment was almost the sole reason behind the erratic volatility of prices. The government has stepped in to protect the citizens against scams and bankruptcy while making institutional money flow into the market.
Mass Acceptance of Blockchain Technology and cryptocurrencies within Corporations
The Blockchain technology has filtered into industries like Supply chain management, Energy and Power sectors etc. The mass acceptance will facilitate a rebound from the price plunge of January. Several companies are publicly developing and designing projects based on Blockchain, and others in privacy. 2018 will witness a giant leap of acceptance of cryptocurrencies and Blockchain technology, as the technology enables high security and speedy transactions at very low costs.