Safe to say, 2018 was a year to forget for cryptocurrencies according to a report on Newsweek.
Bitcoin, the world’s largest cryptocurrency, plummeted nearly 75 percent in the year to date. In December 2017, the value of bitcoin stood nearly $20,000. Now, it’s at $3,840, according to data from Coinmarketcap.
Other crypto companies also are trying to keep their heads above water. The price of Ethereum dropped from more than $1,000 at the close of 2017 to just over $100 today. Crypto-adjacent firms such as American bitcoin mining business Gigawatt, has already filed for bankruptcy. The blockchain-powered social media platform Steemit has also shed 70 percent of its workforce.
As the prices of cryptocurrencies continue their downward spiral, mining them becomes less beneficial, and investor interest diminishes. Part of the reason for that deterioration was the Securities and Exchange Commission's (SEC) denial of a bitcoin, ETF in August of 2018. Another significant reason was lack of security in the system: reports have pegged that almost a billion dollars in cryptocurrencies were pilfered from exchanges in the first half of 2018.
As it is, bitcoin celebrated its tenth year in the space last year, signifying that the currency had the staying power to survive a bad year. In addition, early investors who purchased the coin at over $100 in 2013 have seen a return that bested investing in blue-chip companies or most indices.
Some crypto experts have found reasons to wax optimistic in 2019; others not so much. Here are three predictions for the coming year.
Institutional Investors Will Still Augment Crypto Markets
The year 2018 saw large banks set up cryptocurrency desks, lending some validity to the alternative investments. That pegs to continue this year.
According to Brad Garlinghouse, the CEO of the cryptocurrency exchange platform Ripple, a number of banks were working to incorporate the platform with their systems. Goldman Sachs, Citigroup and Morgan Stanley are all working on ways and means to let their investors securely invest in cryptocoin.
“Banks in 2019 will likely invest much more money into cryptocurrency projects,” said Samantha Albright, head of business development at FXM Capital.
Major Retailers Could Begin Accepting Crypto
Well-known firms like Microsoft and Starbucks have collaborated with the crypto-adjacent Intercontinental Exchange (ICE) to let their clients pay for their products with bitcoin and other currencies. Together, the firms will introduce a product dubbed Bakkt, that lets users convert cryptocoins into U.S. dollars that they can then spend on Starbucks products.
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into U.S. dollars for use at Starbucks," remarked Maria Smith, vice president of partnerships and payments for Starbucks, in a statement.
“Other businesses will soon see the benefits that Starbucks receives when customers pay for products with cryptocurrency using newer, faster infrastructure, which wasn’t there last year,” added Albright.
Another Try at an ETF?
The SEC's ruling to deny bitcoin its own ETF in 2018 had a profound impact on the industry, but the fight rages on. An official ETF has long been the white whale for crypto-heads, as they’ve come to link a digital currency fund with acceptance from the investment community.
But the SEC has denied the funds or deferred its decisions. One such fund by provider VanEck will be sanctioned or rejected in February 2019. If the SEC gives it the go-ahead signal, expect crypto values to rise across the board.
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I like how Samantha Albright said that “Banks in 2019 will likely invest much more money into cryptocurrency projects” and that we should believe on this but aside from this thing,we should also look forward to the other exchanges that have a main role in bringing up those cryptos into reality like Kucoin. I've read about their Platform 2.0 bi-weekly progress update over here https://news.kucoin.com/en/kucoin-platform-2-0-bi-weekly-progress-update%EF%BD%9C2018-12-31/
what can you say about it?