The beginning of 2018 was not the most successful start for the cryptocurrency community. The total capitalization of the market declined from 800 to 330 billion dollars. Many investors - newcomers found themselves in a difficult situation. Sometimes their tension turned into a full-scale panic. Regardless of what happens in the market - correction, consolidation or collapse of the bubble - one thing is obvious: the industry is trying to adapt.
The cryptocurrency market is changing very quickly. From the technical point of view, at the moment the leader in cryptocurrency - Bitcoin looks the most attractive of all TOP coins. It drives the market. From mid-July to the present, its growth looks pretty impulsive.
Well, let's together analyze fresh trends indicators on the cryptocurrency market.
Governments prefer a cautious approach
After the rapid cryptocurrency market growth in 2017, governments of different countries and international organizations began to study the new industry. There was a lot of skepticism at the beginning, many famous people rejected the crypto-currency movement, calling it pure speculation, deceit or bubble. Now the situation has changed. Different countries create special authorities to study the blockchain technology. World leaders draw their attention to the technology of distributed registries and realized the need to conduct additional research before taking any steps. It means that there will be more and more players involved in the market in the nearest future, including governments.
The rise of stable cryptocurrencies
There are more than 1500 cryptocurrencies, and they have a lot of different usage scenarios. First of all, the currencies based on the blockchain were supposed to be used as a safe and effective means of payment. But it turned out that they are hard to use in this capacity because of the extremely high level of volatility. That is why this problem can be solved by so-called stable cryptocurrencies - by linking the value of the token to some other asset or currency. At the same time, there is another mechanism for maintaining a stable value. In this case, the token is supported by another decentralized cryptocurrency, and security (with some margin) is not stored in a private account, but is provided by a smart contract, which allows you to obtain both a price stability and the necessary transparency.
The number of scams with ICO will decrease
The situation on the market of primary placements of coins (ICO) is changing rapidly. In the second half of last year, investors invested more than $ 4.5 billion. However, this gold rush had some adverse consequences. Scammers tried to take advantage of the inexperience and naive players’ actions. Now people become more frugal and look for transparent projects that have finished products or prototypes. The good news is that the era of scams on the ICO market is going to end pretty soon.
Application on traditional B2B market
The main advantage of blocking technology and cryptocurrency is flexibility and transparency of the distributed registry, and its non specialization which allows using it in various situations. It is mainly used in the IT sector, as well as in finance and medicine, but the process includes more and more different sectors and businesses, and this list is rapidly expanding - including transport, sports and real estate.
New large financial players on the cryptocurrency market
From the very beginning, it was clear that the cryptocurrency changes will depend on whether Wall Street is going become a strong participant. Therefore, many looked at large financial institutions and used their influence on the cryptocurrencies as an indicator of its maturity. Now the question states differently: it is already clear that big players like Goldman Sachs and JP Morgan will invest in this market, the question is only when it happens. Goldman already creates an interface for trading cryptocurrencies, so it's important to monitor their progress in this direction. In addition, the blockade also does not stand still - the technology is constantly being improved. It seems that during the next quarter we will probably see a lot of important events - there will be technological breakthroughs, and regulatory changes, and the drift of public actions.
One thing is obvious that in 2018 different countries and their authorities will finally pay proper attention to cryptocurrencies, and start-ups will have to show remarkable will and creativity in order to deserve the attention of investors.
P.S: What do you think about it? What possible changes may occur in the nearest future on the market?