Blockchain Asset Investors and Bitcoin Traders, Here’s Why 2019 Will be the Year of Crypto
The New Year is usually a time of new things. This is when people reflect on past moves and learn from them. This is true for crypto too. In 2019, the crypto community is hoping that things will be better than 2018.
This hope for a better year is important when you consider how bad things were in 2018. For instance, the crypto world was rife with hacks, two crashes, and a bear market. There is also the fact that some of the biggest projects expected in 2018 suffered major delays.
With this in mind, investors are hoping 2019 will be better. However, it is not mere blind optimism. There are solid reasons to expect 2019 to be better. These are:
• The Bear Market Will Lessen
One reason why 2019 might be better is that the bear market might finally end. The grip that it had on the crypto market is 2018 caused prices to plummet. There was an attempt to shake off the negativity, with the biggest effort in May 2018 but there was no success.
Some have claimed that this is a natural cycle in any market. They say that without any major events coins will follow this cycle of highs and lows. Various calculations claim that this bear market will end soon and a rally will set in. However, it is expected that there might be another huge drop before the onset of the Bull Run.
• Resolving The Issue Of Scalability
As most people know, scalability is a major issue with most coins. This has been so since the launch of BTC. The issue mostly affects coins with a huge market cap. BTC suffers from issues of scalability more than any other crypto coin. It still has quite a low limit on the number of transactions per second compared to the number of users. This usually leads to huge transaction fees and long waiting periods.
However, developers have been working on scalability solutions for a while. One of the most promising developments thus far is the Lightning Network. When complete, BTC will get another layer added to it, which users can use for small payments. These small transactions will not be recorded on the blockchain. As a result, the number of transactions will be reduced significantly. As a result, the other transactions will be handled with more ease.
• Institutional Investors Coming Onboard
Crypto managed to reach a market cap of hundreds of billions of dollars with no support from the banks or large firms. While this is impressive, the lack of support from major firms has been a major hindrance to mainstream adoption of crypto.
To attract major firms into crypto, there will need to be safer ways to trade. The lack of support by banks plus the risk of losing money to hackers has kept off most major investment firms. This is why the Bakkt Bitcoin Future project is so important.
The project will allow major investors to invest in crypto without owning any of it. If the project gets SEC approval in 2019, it could provide the needed boost to crypto.