Bitcoiners, Here’s 3 Reasons Why 2019 is Likely to be an Exciting Year for Crypto Asset Investors
Cryptocurrencies have their ups and downs all the time, and some of the biggest ones have been on an annual level.
We can see a great example of this if we take a look at what happened in the last few years. In 2017, cryptos were on a slow but continuous rise, which resulted in more interest in them, which once again increased the prices, until the hype grew so big that most coins grew over ten times their size in a span of only a few months.
However, once the hype died down in 2018, the entire year ended up being one huge price correction, which lasted for 12 months. Even now, many believe that the value drop of cryptocurrencies is still not done and that they will experience further decline before rising once more.
Even so, many believe that 2019 will be an excellent year for cryptocurrencies and that a lot of positive development is to be expected. And, while there will likely be a lot more than just this, here are three things that the crypto community is expecting to occur at some point during this year.
The Continuation Of The Market Cycle
As mentioned earlier, the crypto market is continuously going up and down due to high volatility, which remains one of the cryptos' biggest issues to date. Sometimes, the changes in value are small, and sometimes they are massive. In these instances, we are talking about bear markets (large drops in value) or bull runs (significant increases in value).
However, while they may seem random at first, analysts were able to notice certain patterns which indicate that the crypto market changes tend to follow a cycle. Of course, there are many aspects to consider, and numerous things can unexpectedly influence the market, such as whales (coin holders in possession of massive amounts of specific cryptocurrencies), big hacks, and alike.
Because of this, the cycle is not easy to notice, and it is certainly not perfect. However, it still exists, and it would be clear if the crypto markets were left to progress naturally. With that in mind, analysts believe that the next part of the crypto market's natural progression is to go bullish once more, which has a fair chance of happening in 2019.
In addition, it is expected that the next halvening of Bitcoin mining rewards will arrive at some point in 2020. This will be the third halvening in BTC history, and historically, all such events are followed by significant growth in BTC value, and the coin usually tends to reach a new all-time high during these periods.
In other words, there is much to look forward to, not only in 2019 but possibly in 2020 as well.
Institutional Investors' Arrival To The Crypto Space
For the last ten years, the crypto market managed to successfully grow and develop on its own, with no help or support from banks, institutions, or the government.
However, while individual investors managed to bring it to this point by themselves, it is believed that cryptocurrencies are ready to take the next step, which cannot be achieved without larger investments. This means that it is time for institutions to join in.
Unfortunately for the crypto space, most of them are not interested in making such a move at this time. This, of course, has nothing to do with the lack of interest in cryptocurrencies, and everything to do with issues such as hacking attacks and security.
Even so, institutions are deemed necessary in order for crypto to go mainstream, which will allow individuals to become independent of centralized banks, which will, in turn, eliminate traditional forms of money. While such predictions came a long time ago, it will likely be even longer until this can be achieved,
Another problem that institutions have with the crypto space is the fact that it is still not mature enough for them to start rushing in and buying every coin in sight. One significant proof of this is the trend regarding ICOs (Initial Coin Offerings), which became very popular in late 2017. Profitable conditions and a promise of large profits has brought thousands upon thousands of investors to the crypto market, as well as hundreds of billions of dollars to the crypto market cap.
However, this trend quickly died out, for several reasons. It was stained by a high percentage of scams, it featured countless weak projects, and as soon as the bear market kicked in, and the money dried up, the investment money stopped coming.
Not only that, but the governments around the world cracked down on ICOs, with some of them openly banning them.
Now, a new theory believes that STOs (Security Token Offerings) are the right way to go. As many already know, the biggest difference between STOs and ICOs lies in the fact that STOs offer coins that represent a stake in the assets of companies that are running them.
On the other hand, ICOs were based on trust, as investors had to believe that the coin will gain value after the project completes its promises, which never happened in most cases. As mentioned, weak projects and scams were a large reason why ICOs failed, which is something that STOs are immune to by their very definition.
Finally, there are several projects that will likely encourage institutions to start investing into cryptos, such as the Bakkt Futures trading platform, and Bitcoin ETFs, which are still waiting for the US SEC's approval.
Not to mention Fidelity Digital Assets, which has reported an increase in altcoins demand since its launch in October 2018. This is still not the end, and there are many other projects that aim to either improve the crypto space, or attract investors by offering terms that they might be comfortable with, and it might be safe to say that these efforts will continue (maybe even show significant results) over the course of 2019.
Cryptocurrencies Continue Their Development
Obviously, the new coins that have potential have only just started their true development, and all they did so far was to set up a foundation for further advances. However, what can be said about the top coins? What will happen to Bitcoin? Ethereum?
Well, pretty much the same thing awaits the top two cryptos as well. Even though Bitcoin has been around for an entire decade, it is still bothered by issues regarding scalability, among others. It can only handle 3-6 transactions per second (TPS), which is a tiny amount considering how much usage the coin is currently seeing.
To resolve this, developers came up with a concept of a Lightning Network, which will add a new layer to BTC blockchain, where an unlimited number of transactions can be performed without the need to be validated or recorded on the blockchain. A network of tunnels connecting traders to one another will be established, and for as long as those tunnels are not closed down, trading can flow without interruptions.
The LN is currently still in development, although this might change in the following months.
As for Ethereum, it is trying to deal with the same scalability issues, only in a different way. Ethereum is already much better than Bitcoin, although its own TPS number cannot go higher than 15. This is why Ethereum is scheduled to have several scalability solutions implemented, which are to arrive through hard forks that will occur in the following weeks.
Clearly, the crypto market is very much alive, no matter what skeptics may claim. The development of countless coins is going at full speed, and new projects are being announced all the time. Furthermore, old projects are being improved, and institutional investors are almost prepared to become active participants.
Meanwhile, the demand for blockchain developers is skyrocketing, and large numbers of tech firm employees are leaving their jobs to start working on these new technologies. Considering all of this, there is indeed a lot to be excited about in the following years, most of which will likely have roots in the current year.