Things that are 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 have been many activities in the market that have changed the tide for the better. With proper research and the right dose of optimism, anyone investing in the crypto market can make millions. The cryptocurrency market is here for the long haul. Here in this article, we give you five positive factors that can drive cryptocurrency innovation and market value.

1. Innovation at scale

Bitcoin is the first cryptocurrency in the market. It has the highest 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 only handle six to seven transactions per second. By comparison, credit card transactions average a few thousand per second. Apparently, there is room for improvement in transaction scaling. With the help of peer to peer transaction networks on top of blockchain technology, it is possible to increase the transaction volume per second.

2. Legitimate ICOs

Although there are crypto coins in the market with a stable value, new coins designed for a specific purpose are emerging. Coins like IOTA are meant to help the Internet of Things market exchange power coins. Some coins address the issue of cybersecurity by providing encrypted digital vaults to store money.

New ICOs are creating innovative solutions that disrupt the existing market and bring a new value to transactions. They are also gathering authority 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, in return giving investors more freedom and options.

3. Clarity about the regulations

In the current scenario, most governments are looking into the impact of cryptocurrency on society and how its benefits can be achieved for the community at large. We can expect that there may be reasonable consequences depending on the outcome of the examinations.

Few governments are already taking the path to legalize and regulate crypto markets like any other market. This will prevent ignorant retail investors from losing money and protect them from harm. 2018 is expected to see the emergence of topical regulations that drive cryptocurrency growth. This will pave the way for future expansion.

4. Increase the application

There is a lot of excitement about 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 traders willing to trade through cryptocurrencies which in turn increases the number of users.

The popularity of crypto-assets as a transaction medium will strengthen as more people trust this system. Even if some startups do not survive, they will positively contribute 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 may lead to institutional investors entering the market. The influx of large institutional investments will drive the next phase of cryptomarket growth. It has caught the interest of many banks and financial institutions.

As the uncertainty and hurdles around cryptocurrencies are reduced, their use by traditional investors will increase. This will bring great dynamism and liquidity to the growing financial markets. Cryptocurrency will become the defacto currency for worldwide transactions.