Cryptocurrencies were precisely designed to be a means of settlement that leverages cryptography in order to secure financial transactions, verify assets transfers as well as manage the creation of extra units. In recent times, virtual currencies have become one among the most buzzing topics in the world of business. There is a visible increase in blockchain-based technologies and the crypto market is expected to show positive growth by 2021. Cryptocurrencies are enjoying a lot of fame today, thanks to Bitcoin, the foremost virtual currency as well as the king of the cryptosphere. However, Bitcoin went through some reality checks in 2018 with the value taking a nose dive to $4,000.
Considering the situation at hand, you will not be surprised to hear investors and potential investors make a simple inquiry on what is actually happening in the cryptosphere. The answer to this inquiry is not an easy one but many signs exist which will aid us in predicting the future trends in the cryptocurrency market. Read on to discover 8 future trends of cryptocurrency.
1. Significant growth in cryptocurrencies acceptance
Popular mainstream retailers who are presently accepting some virtual currencies (especially Bitcoin) is increasing by the day and the statistics will continue to rise as the months roll by. Bitcoin is regularly used to book hotels and flights on CheapAir. In this way, brands will find it easy to enhance their reach as well as appeal to a wider market. This is exactly one of the reasons we have so many smaller and lesser known brands turning to the virtual currency.
Modern-day consumers can do with a little diversity in their method of debt settlement. This trend is a welcome one because of the significant reduction in the number of people who still carry cash on their person. For business administrators, it will be in their best interest to accept every available form of payment. Online and physical stores should be equipped with the necessary technology that makes the acceptance of cryptocurrency possible.
2. Improvements in Regulations
One of the interesting and the most exciting reasons people choose crypto over fiat is because of its decentralized nature. However, it has been predicted in the new year and beyond that the cryptosphere is set to be more regulated than before. So what does this trend portend for crypto investors and daily users of the virtual currency? On one hand, it might limit their options, on the other hand, strict regulations will remove a degree of the risks investors face when choosing one of the forms of virtual currencies.
The United States Securities and Exchange Commission will be playing an essential role in the future of the crypto market. This watchdog body is in the process of probing illegal offers and scammers in the ICO marketplace. In this way, they are creating a clear structure for individuals, investors as well as companies to operate from when they finally join the cryptosphere, especially ICOs. In addition, the SEC investigation may elucidate on how investors operate within the virtual currency market.
The platform that investors use for digital currency transactions and investments will be their key to success. 2019 will bring a rise in the number of emerging platforms which will overtake the present leaders. In addition, developers are currently working on many DApps. Already, decentralized apps are featuring on the Ethereum via the aid of an entertaining and amusing game known as CryptoKitties. This game makes it possible for its users to gather digital pets which functions as a fun concept.
However, what is shows, in essence, is how to move blockchain technology forward in the new year. It is not a new concept for brands to leverage apps to grow their market reach. With more than 2.5 billion individuals worldwide owning and operating a smartphone, the crypto community should do well in utilizing this valuable aspect and design their own DApps to attract and intrigue their target audience.
4. New Ways to Earn Cryptocurrency: Blogging
It is quite true that blogging is an innovative trend, but when blogging is for the purpose of earning virtual currency, then it really becomes an innovative trend. Blogging has always been one of the major ways of creating and growing a following in a business or a brand, however, the advent of Crypto Blogging Platforms has made users to take the concept of blogging a step further. The Steemit platform in particular, enables readers to upvote particular blog posts and the upvoting system is designed to allow its writers to earn STEEM.
Writers continue to receive payments as their articles get more likes. The fact that readers are able to see the amount an article has made makes it even more exciting. They can even have access to how much the writer of an article has earned. This current trend moves the idea of an online crypto community a step further. It is a known fact that the digital currency is making its mark in the financial realm. Crypto is a futuristic way to make investments and transactions which is a stark reality in modern times.
5. Scalability issues
Another problem that the virtual currency will face in the current year is the problem of scalability which is the reason why it has proved difficult for the crypto market to gain as
many investors as possible. For instance, Bitcoin takes up seven transactions every second bur ethereum can take twice the number. Needless to point out that this is way too slow and the onus is on developers to get alternative ways of enhancing their scalability.
6. Lightning Network
Regarding scalability, it looks like the problem will be handled fairly quickly by Bitcoin-based off-line technology, known as the Lightning Network. The system leverages on additional payment channels as well as multiple signature portfolios, which should be able to permit cheaper and faster transfers. Apart from Bitcoin, the network aims to litecoin, that could also contribute to giving a boost to this virtual currency.
7. Security Token
Investors are fast-losing interest in ICO campaigns since many of their projects lack credibility and besides many have woefully failed in the past. Security token happens to be the solution to this problem – it is a feature which functions in giving both investors and startups the necessary security when they need to raise funds. Security tokens have proved to be much better as they guarantee real participation especially in startups which is not possible in ICO campaigns.
8. Stability of prices
Many virtual currencies with the inclusion of Bitcoin saw a lot of rising and fall in value during the previous year. Predictions for 2019 is that the prices are likely to be much more stable
than the last year. Volatility is expected to be low with the value of the crypto.