Despite predictions to the contrary, 2017 saw the explosion of cryptocurrencies worldwide, with notable currencies such as Bitcoin skyrocketing by more than 1,300% in value. And, while 2017 was a year of wild growth, 2018 is set to be even bigger and better. Here’s why…
After plenty of ups and downs, Bitcoin – which still dominates the market at 40% – seems to have stabilised now, at a steady $10k, which means more sustainable growth. While after the latest stock crashes, the currency has been lauded as a safe haven from governmental interference, the events on 5th February saw a dip in Bitcoin as well meaning that it’s not safe for us to hedge our bets on cryptocurrencies against the falling US dollar… yet.
While we’re waiting for cryptocurrencies to become globally recognised, here are the current reasons why this year will be even bigger than 2017.
1. Innovations such as the Lightning Network will allow transactions off the blockchain which are instantaneous and free.
2. More companies are moving towards block line: replacing expensive IPO’s (Initial Public Offerings – public sales of the shares) with ICO’s (Initial Coin Offerings- effectively crowdfunding) which are a lot cheaper and more readily available.
3. The rise in utility: more ICOs hopefully means more innovation within the industry in a bid to stand out from the crowd.
4. There’s been talk from figures such as Vladimir Putin and the Security Exchange Commission in the US meaning that regulations are moving in. While most people view regulations as potentially damaging to the market, this is not the case. With a view to the long-term: companies and governing bodies require legal stability and certainty – having these will give them the confidence to invest institutional capital.
While all these points suggest a boom in 2018 for cryptocurrencies, it is worth noting that this is applying logic to a market which has shown time and time again it does not care about the rules. Either way, 2018 is set to be an exciting year for the crypto community.
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