Cryptocurrencies have been creating waves across the financial market ever since they have been introduced. In fact, they have become the biggest buzzwords of the finance universe in the last couple of years. Constantly on the rise, the entire market of this blockchain-based technology is expected to grow up to $2 billion by 2021.
There is no doubt about the fact that digital currencies became popular due to Bitcoin’s abrupt success as its price skyrocketed to almost $20,000 by the end of 2017. However, Bitcoin went through a crucial time in 2018 where its price plummeted to less than $4,000.
As soon as Bitcoin’s price came down, several investors became afraid of putting their money into cryptocurrency investment as they became uncertain about the entire market. They started wondering what was happening with the cryptocurrency market. Though it’s hard to answer this question, there are a few signs that can help us predict the future trends of the cryptocurrency market.
Cryptocurrency Trends That Can Help You Define the Business in 2019
Here are some significant cryptocurrency trends that can help you define the business of most of the cryptocurrencies this year. Let’s take a look at these trends.
Some Projects Bound to Fail
The first trend on this list may not seem optimistic to many. Several startups are expected to give up on cryptocurrency projects. Even though it’s not a new thing to happen in the crypto universe, but it is expected to occur more frequently this year. Let’s take Basis for an example as it has been the most recent case. Basis, a cryptocurrency based on the stablecoin project that managed to raise around $133 million in April 2018, is in the process of terminating its operations and has already returned most of the capital to its investors.
Issuance of Security Tokens
The majority of investors are losing interest in the ICO campaigns because a number of projects lack reliability and turn out to be major failures. The solution comes in the form of the security token, which is, in fact, a feature that offers fundraising security to the startups and investors. Security tokens are considered safer because they guarantee a real stake in the project, unlike the ICO campaigns.
Scalability is yet another problem the majority of the cryptocurrencies will be facing this year. In fact, this problem still persists and is one of the major reasons why cryptocurrency is not getting as many followers as it should. If we talk about Bitcoin, then we already know that it supports up to 7 transactions per second, while Ethereum supports 15 transactions per second. Needless to say, this is way too slow for a digital currency. Developers will have no choice than to find a new way to boost scalability.
Speaking of scalability, it does seem like the Lightning Network, which is Bitcoin-focused off-chain technology, will be facing the same issue very soon. Under this network, there are multi-signature wallets and additional payment channels which should be able to speed up the coin transfers at cheaper rates. Apart from Bitcoin, this network is also aimed at Litecoin in order to give this cryptocurrency significant boost.
Price-wise, several cryptocurrencies, especially Bitcoin, have been facing major ups and downs. 2018 was already much more stable in that regard and 2019 has been expected to be even flatter. Price volatility is believed to stay low and none of the cryptocurrencies are expected to grow or fall by thousands of percentage points.
The last cryptocurrency trend on this list is cryptocurrency know-how. Still, there are many people who are not familiar with the cryptocurrencies – be it their trading process, features, pros, cons, and projects they are dealing in. If the crypto market remains stable, this should start to change now. You can find many cryptocurrency news, articles, blogs, and resources online. The good news is that universities have also started introducing cryptocurrency and blockchain courses.