Insights on the future of cryptocurrency as 2018 ends

The idea of ​​cryptocurrencies (cryptographically encrypted digital currencies) has moved into academic circles since the years & # 39; 70. The idea, however, took shape and shape with the arrival of Bitcoin in 2009. Over the past 9 years, Bitcoin has grown to become disruptive in the fields of monetary policy, finance, and economics. and e-commerce – and has generated a sector of over 2,000 coins, tokens and altcoins in what is generally called the cryptocurrency market.

The future of cryptocurrency

It is interesting to note that the cryptocurrency market peaked last year when the price of Bitcoin has gathered over 1400% to $ 19,000 and the market capitalization of the cryptocurrency market has skyrocketed to nearly $ 700 billion. However, in the period since the start of the year, the trading price of Bitcoin has dropped about 53% to about $ 6,500 and the market capitalization of the encrypted market has fallen by more than 56% to $ 209 billion.

Now, nobody knows for sure how the cryptocurrencies will go on. There is an ongoing debate about whether cryptocurrencies will become the future of money or if the idea will eventually fade into oblivion if it is not able to build a critical mass. This piece provides insights on how the fate of cryptocurrencies could go on.

1. Bitcoin is still the king of the crypt

Bitcoin is still the largest and most popular cryptocurrency on the market; in fact, the first interaction that most people have with cryptocurrency and blockchain technology can be traced back to Bitcoin. Currently the bitcoin has a dominant position of about 53% of the cryptocurrency market; as a result, its price often determines how the other currencies and the overall cryptocurrency market will be successful. Going forward, the market reality suggests that Bitcoin's dominance may not increase, but will most likely remain unquestioned. Of course, some coins are related to Bitcoin and some other coins have an inverse relationship with Bitcoin; however, smart cryptocurrency traders and investors will do well to pay attention to Bitcoins in formulating strategies on how they want to play with other coins.

2. Big changes are coming to the cryptocurrency trade

The cryptocurrency exchanges have the dual function of facilitating the exchange, purchase, sale and trade of cryptocurrencies: they are a big cog in the wheel of the cryptocurrency industry. Ironically, most of the cryptocurrency exchanges in the market are centralized in nature, in stark contrast to the decentralized nature of cryptocurrencies and blockchain technology. The centralized nature of these exchanges has made them prone to data breaches, hacks and outright robberies. In the future, the demand for DEX exchanges will increase, which are of a decentralized nature and maintain a public book of transactions through consensus.

3. The volatility of the markets will not die soon

Cryptocurrencies are inherently volatile and their volatility is one of the reasons why fortunes are produced (and lost) on the market. One of the main reasons behind the volatility of cryptocurrencies is that they are still in early adoption and there is enormous upside potential if they could enter the mass market. However, any little news on cryptocurrencies will indicate the possibility of stunted growth (and falling prices) or suggest the possibility of reaching the mass market (and prices will rise). Volatility in cryptic markets will continue to be felt, as news moves on the market and volatility will probably not stop until there is a massive market push.

4. Institutional investors will bring more funds and insist on mental health in the market

At the beginning of the cryptocurrency, the traditional financial institution and the government financial agencies quickly denounced, criticized and vilified cryptocurrency enthusiasts. However, the cryptography market has proven to be incredibly skilled and resilient in the face of these attacks. Now, the perception of traditional financial institutions on cryptocurrency is changing. Looking ahead, stakeholders can expect to see a growing inflow of funds from Wall Street to the encrypted market while encrypted funds, ETFs and other investment vehicles make their debut. However, the influx of Wall Street will also require more transparency, accountability and regulations.