Cryptocurrencies have become one of the most buzzing topics in the business environment in recent years. Blockchain-based technology is steadily increasing, and the entire market is expected to grow to more and more by 2021.
Digital currencies become famous mainly because of Bitcoin, the first and most successful project. However, Bitcoin encountered a reality check in 2018, falling to less than $ 4,000.
In such circumstances, it is not surprising to hear potential investors ask themselves a simple question: what is happening in the cryptocurrency market? It’s not easy to answer their question, but some signs can help us predict future trends in this area. This article will introduce you to the concept of cryptocurrency and show you seven trends that will attract attention and define business in 2019. Let’s see!
What are the benefits of Cryptocurrencies?
Cryptocurrencies were designed precisely to function as a means of payment that uses powerful cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. The definition itself reveals some of the benefits of using digital currency, but there are many more features to consider here.
As you probably already know, cryptocurrencies are not subject to any centralized authority, such as banks or governments. Decentralization means that owners control assets 100%, without fear of inflation, because developers create a limited number of parts.
Cryptocurrency transactions can’t be changed. They are immutable, bringing fraud prevention to a whole new level. This feature has been used in numerous online casinos and online gambling sites. Just visit Sportsbet and enjoy online betting without risking fraud. All of this can be done thanks to cryptocurrencies such as Bitcoin.
Bitcoin transactions take only a few minutes, and there is no third party vendor to verify and inspect the process. In other words, the transfer happens almost instantly, and your assets are quickly available.
Low transaction costs
Unlike bank and credit card transfers, crypto-currencies charge you a low fixed fee.
Experts believe that Blockchain technology has another significant advantage of cryptocurrency trading. It is one of the most promising IT concepts that will change not only the financial sector but many other sectors as well.
Main trends to change the cryptocurrency market
As a relatively new niche, cryptocurrencies will undoubtedly experience many changes over the next few years. It’s impossible to mention them all here, but the most significant trends in 2019 are:
Some projects will fail
The first trend on this list is a bit pessimistic. Namely, some startups might abandon their projects. This is not new in the cryptocurrency universe, but it will happen more frequently.
Scalability is another problem that cryptocurrencies will face this year as it is one of the main reasons why digital money does not get as many members as it should. For example, Bitcoin supports up to seven transactions per second, while Ethereum can handle twice as much. Needless to say, this is far too slow, and developers will need to find a way to increase their scalability.
Concerning scalability, it seems that bitcoin-based off-line technology, called the Lightning Network, will deal with this problem fairly quickly. The system relies on multiple signature portfolios and additional payment channels, which should allow for faster and cheaper parts transfers. Besides Bitcoin, Lightning Network aims to Litecoin that could also give a boost to this cryptocurrency.
Investors are losing interest in Initial Coin Offering (ICO) campaigns because many projects lack credibility and prove to be complete failures. The solution comes in the form of a security token, a feature that gives startups and investors much more security when raising funds. Security tokens are safer because they guarantee real participation in a startup, which is not the case for ICO campaigns.
Stabilization of prices
Many cryptocurrencies, including Bitcoin, have seen significant price rises and falls. Last year, it was already much more stable in this respect, but it is a big chance that 2019 will be even smoother. Price volatility is expected to be low, but cryptocurrencies won’t probably fall or increase by several thousand percentage points.
The last prediction on this list is cryptocurrency learning. Namely, most people are still not familiar with the basic features, advantages and disadvantages of cryptocurrency trading. This should begin to change now that the market has been stable. All kinds of learning resources are available online, while several universities introduce courses on cryptocurrency and blockchain.
Cryptocurrencies have become an important topic of conversation in recent years, mainly because of the incredible rise of bitcoin. However, the entire market is subject to unexpected changes, and potential investors struggle to analyze and understand the state of digital currencies. In this article, we showed you some basics about crypto-currencies and seven captivating trends that would define the business world in 2019. We hope you enjoyed reading it.