Cryptocurrencies became one of the most buzzing trends in the business environment recently. Blockchain-based technology is increasing too, and the whole market is expected to grow to more and more by 2021.
Why digital currencies became famous?
The digital currencies become famous mostly because of Bitcoin, which is the first, as well as the most successful project. But, Bitcoin encountered a reality check last year, falling to less than $4,000.
In the circumstances like those, it is not a surprise that potential investors ask themselves a simple question: what happens in the crypto market?
Well, this is not an easy question to answer, but there are some signs which help us predict future trends in this area. We are going to introduce you here to the concept of cryptocurrency, and also show you the seven trends which are going to attract attention, as well as define business in 2019.
Which are the benefits of cryptocurrencies?
Cryptocurrencies have been designed precisely to function as the means of payment which utilized powerful cryptography to secure financial transactions, control the creation of some additional units, and even verify the transfer of assets. The definition itself also reveals some of the benefits of utilizing digital currency but, there are a lot of features to consider here. So, some of the benefits of cryptocurrencies are:
As you may already know, cryptos are not subject to any centralized authority like government or banks. Decentralization means that owners control assets about 100% without fear of inflation, as developers create a limited number of parts.
Crypto transactions cannot be changed. They are also immutable, bringing fraud prevention to an entirely new level. The feature was utilized in several online gambling sites and casinos. You can visit Sportsbet and enjoy the online betting without risking any fraud. All of this may be done thanks to the crypto such as Bitcoin.
Bitcoin transactions take just several minutes, and there is no third party vendor to verify, as well as inspect the process. In other words, this transfer occurs almost instantly, and your assets will be quickly available.
Low transaction costs
Unlike some credit card or bank transactions, the cryptocurrencies charge you a low fixed fee.
According to some experts, blockchain technology has another significant advantage of crypto trading. It is one of the most promising IT concepts which are going to change not just the financial sector but a lot of other industries too.
The main trends to change the crypto market
Being a relatively new niche, cryptocurrencies are undoubtedly going to experience a lot of changes over the following several years. It is unmanageable to mention them all there, but the most important trends in 2019 are:
Some projects are going to fall
The first trend on the list is quite pessimistic. Namely, some startups might abandon their projects. This is actually not new in the crypto space, but it is going to happen more often.
Scalability is just another problem which cryptos are going to face during 2019 as it is definitely one of the main reasons why digital money does not get as many members as it has to. For instance, Bitcoin supports about seven transactions per second, while Ethereum has the ability to handle twice as much. This is definitely far too slow, and developers are going to need to find a way for increasing their scalability.
When scalability comes in question, it looks like Bitcoin-based off-line technology, which is called Lightning Network, is going to deal with this problem fairly quickly. The system also relies on several signature portfolios, as well as additional payment channels, which should also allow for some faster, as well as cheaper parts transfers. Besides Bitcoin, Lightning Network has some plans to Litecoin that could also give a boost to this crypto.
Same, investors are losing interest in Initial Coin Offering or ICO campaigns as a lot of project lack credibility and prove to be complete failures. The solution also comes in the form of a security token, which is a feature which gives startups and investors much more security when raising funds. Security tokens are actually safer as they guarantee real participation in a startup, which is actually not the case for ICO campaigns.
Stabilization of prices
A lot of cryptos, which include Bitcoin, saw substantial price rises and falls. In 2018, it was already much more stable in this respect, but it is a big chance that this year is going to be even smoother. The price volatility is expected to be low, but cryptos will not probably fall or increase by several thousand percentage points.
The last prediction on the list is the crypto learning. Namely, most of the people are not familiar with the basic features, advantages, as well as disadvantages of crypto trading. This should also start to change now that the market was stable. All the kinds of learning resources are available online, while a few universities introduce courses on crypto and blockchain.