What awaits cryptocurrency market in 2018? According to the market experts, this year might be the most successful for the crypto space. Here, we discuss 5 key reasons for 2018 Cryptocurrency market success in details.
CryptoToday – Looking back at 2017, one could definitely say that it was a year of Blockchain and cryptocurrency. However, some investors might have missed the boat to invest in the crypto market. Others, who have heavily invested in the crypto space, might have lost their initial certainty in the cryptocurrency market potential.
5 Key Reasons for 2018 Cryptocurrency Market Success
Nevertheless, some of the cryptocurrency market insiders believe that the best times for cryptocurrencies are yet to come. In fact, some of the experts believe that 2018 might be the best year for the crypto market.
Why? This is exactly what we will discuss in this piece. Below, we will present to you five key reasons for 2018 cryptocurrency market success.
1. Scaling Issues Progress
As you already know, Bitcoin is the most popular cryptocurrency in the world. It also has the largest share of the cryptocurrency market capitalization. As of now, this figure stands at $163,421,113,166.
Most of the fiat money that flows into and out of the cryptocurrency, is going through Bitcoin. Therefore, we can conclude that this cryptocurrency is very important for the whole cryptocurrency market. In addition, Bitcoin enjoys the biggest user base and industry.
Now, all this is despite its scaling issues. Presently, Bitcoin is able to manage approximately 7 transactions a second. Besides, these scalability issues are increasing fees as well.
The fresh Bitcoin Core client version has been released for the public feedback earlier this month. The Bitcoin 0.16.0 core includes full Segregated Witness support. This version aims to deliver “new features, various bugfixes, and performance improvement.” The demand for this technology has spiked in August 2017, when the Bitcoin Cash was released.
The so-called second layer peer-to-peer off chain networks emerge as a solution to the Bitcoin scalability issues. Markets expect the uptrend in transactions and the use of more Bitcoins across these channels. Speaking differently, second-layer networks might solve the issues that Bitcoin faces. This could largely support Bitcoin rally this year.
2. ICO Market to become More Legitimate
During 2017, Initial Coin Offerings (ICOs) have largely impacted the Ethereum network due to the fact that Ethers usually require a lot of Ether. In the current year, the trend will most likely continue – and this will boost the demand for Ethereum further.
More reliable ICOs will bring a greater interest in the sector, in turn. This means that we could see an increase in the market cap of Ethereum by the end of 2018. The cryptocurrency’s value could also rise significantly.
See also: 2018 ICO Market Predictions
3. Cryptocurrency Market Regulation
While many believe that regulations will damage cryptocurrency market, this might be true only for the short-term value. If we look at the unfolding situation in the markets from the long perspective, the picture is mostly positive.
In fact, many of the global officials have stated that once the cryptocurrency market will get proper regulations in place, it will become more stable. Moreover, the regulation provides users and institutional clients with the necessary confidence to invest.
This situation has already somewhat taken place in Japan. Right after Japan has introduced regulations, the market dipped. Then, it rose gradually.
At the beginning of this year, we already saw many of the countries showing intentions to regulate ICO and cryptocurrency markets. This trend might continue well in 2018, thus establishing a stable ground for cryptocurrency trading.
4. More trust and usability
There is a number of startups that issue debit cards to encourage people to spend their cryptocurrency holdings, such as NAGA Coin. This might imply that the number of users and merchants is set to rise in 2018.
This, in turn, would improve the regulation of cryptocurrencies, while more and more companies put their trust in them.
5. More funds flowing into crypto
The last but not least reason for 2018 cryptocurrency market success is that this year will mark the first year of solid institutional funds flowing into the ecosystem. Some of the market experts anticipate that approximately $10 billion has so far been invested into the cryptocurrency ecosystem. However, this is nothing in comparison to the institutional funds’ investing capabilities.
To sum up
Summing up, the possibility of all the abovementioned factors to take place is not certain. Yet, the likelihood is quite high. In case you put these factors together, the cryptocurrency market growth potential is looking to rise seven to eight times the current level.
However, this condition does not constitute an investment advice and each investor has to carry out his/her due diligence.
Do you know any other reasons for 2018 Cryptocurrency market success? Do not hesitate to ask us in the comments section below.