Things that look positive for cryptocurrencies

Although there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There has been a lot of activity in the market that has changed the course for the better. With proper analysis and the right dose of optimism, anyone invested in the crypto market can make millions from it. The cryptocurrency market is here to stay for the long term. Here in this article, we give you five positive factors that can drive further innovation and market value of 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 in the cryptocurrency system. However, it is not without problems. Its main bottleneck is that it can only process six to seven transactions per second. By comparison, the average credit card transaction is several thousand per second. Obviously, there is room for improvement in scaling transactions. With the help of peer to peer transaction networks on top of blockchain technology, it is possible to increase the volume of transactions per second.

2. Legitimate ICO

While there are stable value cryptocoins on the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are meant to help the Internet of Things market exchange power currencies. Some coins address the issue of cybersecurity by providing encrypted digital vaults to store money.

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

3. Clarity of regulation

In the current scenario, most governments are studying the impact of cryptocurrencies on society and how its benefits can be realized for the community as a whole. We can expect that there will be reasonable conclusions according to the results of the study.

Several governments are already going the route of legalizing and regulating the crypto market like any other market. This will prevent uninformed retail investors from losing money and protect them from harm. 2018 is expected to see the emergence of appropriate regulations that promote the growth of cryptocurrencies. This will potentially pave the way for widespread adoption in the future

4. Increasing application

There is huge enthusiasm for the application of blockchain technology in almost every industry. 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 increases the number of users.

The reputation of crypto assets as a transaction medium will be strengthened as more and more people trust this system. Although some startups may not survive, they will contribute positively to the overall health of the market by creating competition and innovation.

5. Investments of financial institutions

Many international banks are following the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The influx of significant institutional investment will fuel the next phase of crypto market growth. He got busy with many banks and financial institutions.

As the surprises and bottlenecks around cryptocurrencies diminish, traditional investors will become more accepting. This will bring a lot of dynamism and liquidity which is necessary for all growing financial markets. Cryptocurrency will become the de facto currency for transactions worldwide.