Chad HarrisonWhile the cryptocurrency market experienced market corrections in 2018, everyone agrees that the best is yet to come. There have been numerous market activities that have helped to turn the tide. Anyone who invests in the cryptocurrency market can make millions with proper analysis and a healthy dose of optimism. The cryptocurrency market is here to stay for the foreseeable future. This article will discuss five positive factors that can stimulate further innovation and market value in cryptocurrencies.
- Scaling innovation
Bitcoin is the market’s first cryptocurrency. It has the greatest number of users and the greatest monetary value. It controls the entire cryptocurrency system’s value chain.
It is, however, not without flaws. Its main limitation is that it can only handle six to seven transactions per second. Credit card transactions, on the other hand, average a few thousand per second. There appears to be room for improvement in transaction scaling. It is possible to increase transaction volume per second by using peer-to-peer transaction networks built on top of blockchain technology.
- Genuine Initial Coin Offerings
New ICOs are launching innovative solutions that disrupt the existing market and add new value to transactions. They are also gaining market authority due to their simple exchanges and dependable backend operations. They are innovating on two fronts: technology (using specialised hardware for mining) and finance (giving investors more freedom and options in the exchange).
- Regulation clarity
Most governments are currently investigating the impact of cryptocurrencies on society and how they can benefit the community as a whole. We can anticipate reasonable conclusions based on the findings of the studies.
Few governments have already begun to legalise and regulate cryptocurrency markets in the same way that they do any other market. This will keep inexperienced retail investors from losing money and will keep them safe. In 2018, enabling regulations to promote cryptocurrency growth is expected. This could pave the way for widespread adoption in the future.
- Extend application
There is a lot of excitement about using blockchain technology in almost every industry. Some startups are developing innovative solutions such as digital wallets, debit cards for cryptocurrencies, and so on, which will increase the number of merchants willing to transact in cryptocurrencies, thereby increasing the number of users.
As more people place their trust in this system, the reputation of crypto assets as a transaction medium will grow. Although some startups may fail, they will contribute to the overall health of the market by fostering competition and innovation.
- Financial institution investment
Many international banks are keeping an eye on the cryptocurrency scene. This could result in institutional investors entering the market. Significant institutional investments will fuel the cryptomarkets’ next phase of growth. Many banks and financial institutions are interested in it.
Traditional investors will become more interested in cryptocurrencies as the surprises and bottlenecks surrounding them diminish. This will result in a lot of dynamism and liquidity, which are both essential for any growing financial market. Cryptocurrency will become the de facto currency for global transactions, but one should also look for apprpriate 바이낸스 수수료.
Chad Harrison
