2018 was not a great year for cryptocurrencies.
Bitcoin, the largest cryptocurrency in the world, has reached almost 75 percent in the year to date. In December 2017, bitcoin was worth nearly $ 20,000. Now, as the 2018 draws to a close, it is approaching less than $ 3,875.
Even other cryptographic companies are struggling to stay afloat. The price of Ethereum dropped from over $ 1,000 at the end of 2017 to just over $ 100 today. Crypto-adjacent companies, such as the American bitcoin mining company Gigawatt, have filed for bankruptcy. The block-based social media platform Steemit has recently fired 70% of its staff.
When cryptocurrency prices fall, their exploitation becomes less profitable and investor interest falls. Part of the reason for this decline was the refusal of the Securities and Exchange Commission (SEC) of a bitcoin, ETF, in August. Another was the lack of security in the system: only one billion dollars in cryptocurrencies were subtracted from trade in the first half of 2018, according to reports.
Still, bitcoin celebrated its tenth anniversary in 2018, showing that the currency had the power to withstand a bad year. In addition, the first investors who bought the coin at just over $ 100 in 2013 saw a return investing in blue-chip companies or in most of the indices outside the park.
Some cryptoanalysts find reasons to be confident in 2019; others not so much. Following are three forecasts for the following year.
Institutional investors will continue to strengthen cryptographic markets
In 2018, we saw big banks set up cryptocurrency banks, giving some legitimacy to alternative investments. This will not end in 2019.
Brad Garlinghouse, CEO of the cryptocurrency exchange platform Ripple, has declared this year at the SG FinTech Festival that several banks have worked to integrate the platform with their systems. Goldman Sachs, Citigroup and Morgan Stanley are developing new ways to enable their investors to invest securely in cryptocenetics.
"Banks will probably invest much more money in cryptocurrency projects in 2019," said Samantha Albright, Head of Business Development at FXM Capital.
Major retailers may start accepting Crypto
Large companies like Microsoft and Starbucks have partnered with the crypto-adjacent Intercontinental Exchange (ICE) to allow customers to pay for their products with bitcoins and other currencies. Together, companies will launch a product called Bakkt, which allows users to convert cryptographies into US dollars that they can then spend on Starbucks products.
"As a leading retailer, Starbucks will play a pivotal role in developing practical, reliable and regulated consumer applications to convert their digital assets into US dollars for use at Starbucks," said Maria Smith, vice president of partnerships and payments. for Starbucks. a declaration.
"Other companies will soon see the benefits that Starbucks receives when customers pay for cryptocurrency products using a new and faster infrastructure, which was not present last year," wrote Albright.
Expect another to go to an ETF
The SEC decision to deny the bitcoin to its ETF in 2018 has dealt a major blow to the industry, but the fight is not over yet. An official ETF has long been the white whale for crypto-heads, as they have come to associate a digital money fund with broad acceptance by the investor community.
But the SEC has refused funds or delayed its decisions on them. One of these funds from the VanEck provider will be approved or rejected in February 2019. If the SEC gives the go-ahead, they expect cryptographic values to increase across the board. An official ETF would make the encryption more readily available to investors and would increase regulatory oversight, making the system a safer bet.