Reasons why Investing into Cryptocurrency in 2018 Would be a Boon
February 24, 2018 12:47 pm
2018 would be the Best Year to invest in Cryptocurrency, Here is Why!
Consumers these days either invest too much or too little because they don’t do correct analysis. Hence, it prompted a need to enlist five reasons why 2018 could be the best year for cryptocurrencies.
1. The efforts on the Balancing matters:
Bitcoin has the highest priority compared to all cryptocurrencies. Most of the government-backed money is highly reliable on Bitcoin which is why the entire market is affected by original cryptocurrency.
By estimates, it’s said that Bitcoin would regain market dominance by 75% of the entire space. It seems to have the biggest user base and industry. However, it still seems to face challenges in scaling up for wider usage. Anyways, there is a drawback that Bitcoin holds where it allows not more than six or seven transactions a second. Comparing with credit cards where thousands of transactions take place per second, it is understandable for Bitcoin to accept criticism about being useful at larger scales.
However, some solutions could deal with these problems which for example would be; Lightning Network introduced by Blockstream allows transactions off the Blockchain which results in reduced transaction costs and hence increases speed and scalability almost to infinity. Another project like Rootstock also would allow transactions and other computations similar to those of Ethereum to be done through Bitcoin.
Projects like these would prove to be responsible for a significant rise in BTC.
2. Legitimate ICOs that could reach Large scales:
Last year ICOs (Initial Coin Offerings) impacted the Ethereum network since ICOs require plenty of networks; this year also the same concept will follow. This will reinforce the demand for the digital coin.
This would lead to a rise in the market cap of Ethereum up to $200 billion by the end of the year from less than $90 billion seen recently. It is said that though other platforms could see similar gains, Ethereum would be the main focus.
Marketers seem to dislike regulations; however, that is a short-sighted outlook. Companies require laws for lawful stability and reliability. Rules give consumers and clients the certainty that it is safe to invest.
Countries like Japan and Australia enforced regulations on bitcoin due to which the market drastically dropped but rose back eventually. There are intuitions that other countries could do the same, but the market’s destiny won’t change after what happened in Japan and Australia.
4. Vast Implementation and usability:
Several startups have started offering debit cards to help cryptocurrency users spend their holdings. This could also result in an increase in the number of users and merchants in the year 2018. This would brighten the status of cryptocurrencies, with the increasing trust of the companies. The startups that will flourish well this year will stand out and create a basis for survival.
5. Conventional Investors:
A flow of solid institutional money into the ecosystem is expected in the year 2018 which will be a stellar year for cryptocurrencies.
It has been estimated that $10 billion to $12 billion has as of now flown into the crypto ecosystem, but in comparison to institutional fund investment, it seems nothing. Those first funds which strengthened the market to $500 billion could double the market cap this year.
The explanation of the five factors stated above does not contribute to 100% that is currently happening, but it could provide a probability of 70 to 75%. Each of the above details could contribute to the market’s growth from 50 to 100 percent- maybe even 200%.