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 for the better. With the right analysis and the right dose of optimism, anyone who invests in the crypto market can earn millions. The cryptocurrency market is here for the long term. Here in this article, we provide you with five positive factors that can drive innovation and market value in cryptocurrencies.
1. Innovation in scaling
Bitcoin is the first cryptocurrency on the market. It has the highest number of users and the highest value. It dominates the entire value chain of the cryptocurrency system. However, there is no problem. Its main bottleneck is that it can only handle six to seven transactions per second. By comparison, credit card transactions average thousands of seconds. Apparently, there is room for improvement in transaction escalation. With the help of peer-to-peer transaction networks on blockchain technology, it is possible to increase transaction volume per second.
2. Legitimate ICOs
Although there are cryptocurrencies of stable value in the market, new coins designed for a specific purpose are emerging. Coins like IOTA are a way to help the Internet of Things exchange currency. Some currencies address the issue of cybersecurity by providing digital encrypted vaults to save money.
New ICOs are creating innovative solutions that break down the existing market and bring new value to transactions. They are also gaining momentum in the market with easy-to-use exchanges and reliable backend operations. They are innovating in terms of technology in terms of the use of specialized hardware for mining and the financial market, giving investors more freedom and opportunity in return.
3. Clarity of regulations
In the current scenario, most governments are looking at the impact of cryptocurrencies on society and how their benefits can be achieved to the community at large. We can expect that there may be reasonable conclusions based on the results of the studies.
Few governments are already taking the path of legalizing and regulating crypto markets like any other market. This will prevent the loss of money to ignorant retail investors and protect them from harm. The issue of rules that drive the growth of cryptocurrency is expected to emerge in 2018. This will pave the way for future expansion.
4. Increase the application
There is great excitement about applying blockchain technology to almost every industry. Some startups are coming up with innovative solutions, such as digital wallets, crypto-currency debit cards, and more. This will increase the number of traders willing to trade in cryptocurrencies, which will increase the number of users.
The popularity of cryptocurrencies will be strengthened as a transactional medium as more people trust this system. Although some startups may not survive, they will positively contribute to the overall health of the market by creating competition and innovation.
5. Investment by financial institutions
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Many international banks are watching the cryptocurrency scene. This can lead to institutional investors entering the market. The inflow of large institutional investments will drive the next phase of growth in cryptocurrencies. It has become a favorite of many banking and financial institutions.
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As the unpredictability and fabric of cryptocurrencies diminishes, so will the use of traditional investors. This will lead to greater dynamism and liquidity for the growing financial markets. Cryptocurrency will become the de facto currency for transactions around the world.