Things that look positive for cryptocurrencies

Although in 2018 there have been market corrections in the cryptocurrency market, everyone agrees that the best is yet to come. There have been many activities in the market that have changed the tide for the better. With proper analysis and the right dose of optimism, anyone who invests in the crypto market can earn millions. The cryptocurrency market has come to stay long term. In this article, we offer you five positive factors that can stimulate innovation and the market value of cryptocurrencies.

1. Innovation in scale

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 its problems. Its main bottleneck is that it can only handle six to seven transactions per second. In comparison, credit card transactions average an average of a few thousand per second. Apparently, there is room for improvement in the scale of transactions. With the help of peer to peer transaction networks at the top of blockchain technology, it is possible to increase the volume of transactions per second.

2. Legitimate ICOs

Although there are cryptocurrencies with a stable value in the market, newer currencies are being created that are designed for a specific purpose. Currencies like IOTA are meant to help the Internet of Things market to exchange energy coins. Some currencies address the problem of cybersecurity by encrypting digital vaults to store money.

The new ICOs are presenting innovative solutions that disrupt the existing market and add new value to transactions. They are also gathering authority in the market with their easy-to-use exchanges and reliable backend operations. They are innovating both in the technological aspect in terms of the use of specialized hardware for mining and in the financial market, giving more freedom and options to investors to trade.

3. Clarity in regulation

In the current scenario, most governments are studying the impact of cryptocurrencies on society and how their benefits can accumulate for the community at large. We can expect reasonable conclusions depending on the outcome of the studies.

Few governments are already taking the path of legalizing and regulating cryptographic markets like any other market. This will prevent ignorant retail investors from losing money and will protect them from damage. It is expected that in 2018 the enabling regulations that drive the growth of the cryptocurrency will appear. This may pave the way for widespread adoption in the future.

4. Increased application

There is great enthusiasm for the application of blockchain technology in virtually every industry. Some startups are proposing innovative solutions such as digital wallets, debit cards for cryptocurrencies, and more. This will increase the number of merchants who are willing to make transactions in cryptocurrencies which in turn will increase the number of users.

The reputation of cryptographic assets as a means of transaction will be strengthened as more people trust this system. While some startups may not survive, they will make a positive contribution to the overall health of the market by creating competition and innovation.

5. Investment by financial institutions

Many international banks are watching the cryptocurrency scene. This can lead to the entry of institutional investors into the market. The inflow of substantial institutional investment will fuel the next phase of growth in cryptocurrencies. It has captured the imagination of many banks and financial institutions.

As surprises and bottlenecks around cryptocurrencies shrink, there will be more adoption by traditional investors. This will bring much needed dynamism and liquidity to any growing financial market. The cryptocurrency will become the de facto currency for worldwide transactions.