Although the market for cryptocurrency markets has been revised in 2018, everyone agrees that the best has not yet arrived. There has been a lot of activity in the market that has changed to improve the tide. With proper analysis and the right dose of optimism, anyone who has invested in the crypto market can earn millions from it. The cryptocurrency market is here for the long term. Here in this article, we give you five positive reasons that can encourage more innovation and market value in cryptocurrencies.
1. Scaling Innovation
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. The main obstacle of is is that it can handle only six to seven transactions per second. In comparison, credit card transactions average a few thousand per second. Clearly, there is scope for improvement in the scaling of transactions. With the help of peer-to-peer transaction networks at the top of blockchain technology, it is possible to increase the amount of transactions per second.
2. Legal ICOs
With cryptocurrencies on the market with stable values, new coins are being created that are designed to serve a specific purpose. Coins like IoT are designed to help market the Internet of Things for exchanging electronic currencies. Some currencies consider cybersecurity with encrypted digital vaults to save money.
New ICOs are coming up with innovative solutions that undermine existing markets and bring new value to transactions. They are gathering authority in the market with easy exchange and reliable backend activity. By giving investors more freedom and options in return, they are inventing technologies related to both mining and the use of specialized hardware for financial markets.
3. Clarity about the rules
In the current situation, most governments are researching the impact of cryptocurrencies on society and how its benefits can be extended to the community at large. We can expect that reasonable conclusions can be made based on the results of the study.
Few governments are taking the path of legalizing and controlling the crypto market like other markets. This will prevent ignorant retail investors from losing money and protect them from losses. Regulations encouraging cryptocurrency growth are expected to appear in 2018, which is expected to pave the way for potentially widespread adoption in the future.
4. Increase application
There is a lot of incentive to apply blockchain technology in virtually every industry. Some startups are coming up with innovative solutions such as digital wallets, debit cards for cryptocurrencies, etc. which will increase the number of merchants willing to transact in cryptocurrency which will increase the number of revolving users.
The reputation of crypto assets as a medium of transaction will be further strengthened as more people believe in this system. While some startups may not survive, they will play a positive role in the overall health of the market in terms of competition and innovation.
5. Investments from financial institutions
Many international banks are watching the cryptocurrency scene. This could lead to the entry of institutional investors into the market. Adequate institutional investment flows will propel the next step in the growth of cryptocurrencies. It has taken the fancy tricks of many banks and financial institutions.
Traditional cryptocurrency investors will be more accepted as well as reducing surprises and barriers around cryptocurrency. This will lead to a lot of dynamism and liquidity required for any growing financial market. Cryptocurrency will become the de facto currency for transactions around the world.