Things that look positive for cryptocurrencies

Although 2018 saw corrections in the cryptocurrency market, everyone agrees that the best is yet to come. There have been many events in the market that have changed things for the better. With proper analysis and the right dose of optimism, anyone who has invested in the crypto market can make millions from it. The cryptocurrency market is here to stay. In this article, we give you five positive factors that can drive further innovation and the market value of cryptocurrencies.

1. Innovation in scaling

Bitcoin is the first cryptocurrency on the market. It has the most users and the most value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main bottleneck is that it can only handle six to seven transactions per second. By comparison, credit card transactions average several thousand per second. There seems to be room for improvement in transaction scaling. With the help of peer-to-peer transaction networks based on blockchain technology, the volume of transactions per second can be increased.

2. Legitimate ICOs

Although there are cryptocurrencies on the market with a stable value, new coins are created that are designed to fulfill a specific purpose. Coins like IOTA are designed to help the Internet of Things market exchange powerful currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.

New ICOs come up with innovative solutions that disrupt the existing market and bring new value to transactions. They also gain credibility in the market with their easy-to-use exchanges and reliable backend operations. They are innovating both on the technology side of using specialized mining equipment and on the financial market side, giving more freedom and options to investors on the exchange.

3. Clarity of regulation

In the current scenario, most of the governments are studying the impact of cryptocurrencies on the society and how their benefits can be obtained for the society as a whole. We can expect that reasonable conclusions can be drawn from research.

Few governments are already choosing to legalize and regulate crypto markets like any other market. This will prevent uninformed retail investors from losing money and protect them from harm. 2018 is expected to see regulations that promote the growth of cryptocurrency. Perhaps this will pave the way for widespread adoption in the future

4. Increasing application

There is tremendous enthusiasm for the application of blockchain technology in virtually all industries. Some startups are coming up with innovative solutions like digital wallets, cryptocurrency debit cards, etc. This will increase the number of merchants willing to transact in cryptocurrencies, which in turn will increase the number of users.

The reputation of crypto-assets as a transaction medium will only grow as more people trust the system. Although some startups may not survive, they will make a positive contribution to the overall state of the market by creating competition and innovation.

5. Investments from financial institutions

Many international banks are monitoring the cryptocurrency situation. This could lead to institutional investors entering the market. The influx of significant institutional investment will fuel the next phase of growth in crypto markets. He took over many banks and financial institutions.

As the surprises and bottlenecks around cryptocurrencies diminish, traditional investors will begin to use them more. This will lead to great dynamism and liquidity, much needed in any growing financial markets. Cryptocurrency will become the de facto currency for transactions worldwide.