Things are looking 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 are many activities in the market that change the flow for the better. With the right analysis and the right dose of optimism, anyone who invests in the cryptocurrency market can make millions from it. The cryptocurrency market is here to stay for the long haul. In this article, we present you with five positive factors that can drive more innovation and market value in cryptocurrencies.

1. Innovation in measurement

Bitcoin is the first cryptocurrency in 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 problems. Its main bottleneck is that it can handle six to seven operations per second. By comparison, credit card transactions average several thousand per second. As can be seen, there are opportunities to improve the scale of operations. On top of blockchain technology, it is possible to increase the transaction volume per second with the help of peer-to-peer transaction networks.

2. Legitimate ICOs

While there are fixed-value cryptocoins on the market, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are designed to help the Internet of Things market in exchanging energy currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.

New ICOs offer innovative solutions that disrupt the existing market and bring new value to transactions. They also gain a reputation in the market for their easy-to-use exchanges and reliable back-end operations. In exchange, they are innovating on the technology side of using specialized equipment for both mining and the financial market, giving investors more freedom and options.

3. Regulatory clarity

In the current scenario, most governments are studying the impact of cryptocurrencies on the society and how its benefits can be calculated to the society at large. According to the results of the studies, we can expect that there may be reasonable results.

Few governments are already taking the path of legalizing and regulating cryptocurrency markets like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. In 2018, regulatory rules are expected to emerge, fueling cryptocurrency growth. This will enable future expansion.

4. Increase in application

Almost every industry has a lot of enthusiasm for implementing blockchain technology. Some startups are developing digital wallets, debit cards for cryptocurrencies, etc. They offer innovative solutions. This will increase the number of merchants willing to transact in cryptocurrencies, which in turn will increase the number of users.

As more people trust this system, the reputation of cryptocurrencies as a means of transaction will strengthen. While some startups may not survive, they will contribute positively to the overall health of the market, creating competition and innovation.

5. Investments from financial institutions

Many international banks are following the cryptocurrency scene. This may cause institutional investors to enter the market. The influx of significant institutional investment will fuel the next phase of cryptocurrency growth. This has captured the fancy of many banks and financial institutions.

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