What Crypto Trends Are Coming This Year
The cryptocurrency space changes rapidly and unpredictable. But if you look at the changes from the perspective of a professional analyst, you can identify certain trends.
What Will Change In The First Place
1. State regulation. Now cryptocurrency has not well developed legal base, and this creates a number of difficulties in ensuring the protection of participants' transactions and disputes. Countries legislation has different attitudes to this kind of asset that ultimately affect the stability of the market as a whole and leads to a number of risks. In particular, it creates favourable conditions for fraud.
Despite the fact that cryptocurrencies are inherently not subject to centralized control, legal regulation of the associated processes is required. In particular, for:
- Market Protection. January 29, 2018 media reported that hackers hacked the Japanese cryptocurrency exchange Coincheck and stole cryptoactive assets worth $ 533 million. In most of these situations the victims have absolutely no recourse. After all, as long as cryptocurrency has no clear legal status will not be the owners of digital assets.
- Improving transactions security. In March 2017 it became known that the creators Razormind completed a successful ICO have disappeared with the collected funds (about $ 10,000,000). How to protect your interests, if the terms of the transaction have violated? What are the rules to follow when resolving disputes? Definitive answers to these and other questions yet. Now the majority of the participants do so at their own risk. As a tool to regulate the relationship of parties to use contracts of the offer, but this is not enough.
- Innovative technologies integration. In December of the last year, information appeared on the Pineapple Fund, the founder of which earned so much that he decided to share profits with pushers for money. Cryptodonations are especially good because funds spend quickly and, most importantly, directly to the recipient. Besides the immediate donations transfer, there are other "domestic" sphere of application of blockchain technology. For example, rapid clearance, credits, etc. Cryptocurrency can transform our reality!
It want to believe that under cryptocurrencies legal status question special attention will be given to to maintaining a balance between legitimate regulation and control, without abuse or misappropriation of private funds.
2. Forks: to split or not to split? There are a several forks in 2018
The cryptocurrency market is growing, there appear new and new projects, and this inevitably increases the load on the computing system. Due to the overabundance of transactions and then there are the failures, exacerbating the volatility of cryptocurrency segment.
On the one hand, it necessitates the improvement of the codes, and it often entails the forks. For example, in September 2017, due to the risk of a split in the crypto community, SegWit2x has canceled. But network problems have remained unresolved. This means that the issue of implementing a hardfork sooner or later may rise again.
Against this background, a new trend has emerged. Began to appear projects with an improved architecture of the block - a pre-calculated for a huge number of transactions and with the ability to implement modifications without forks. For example, it is in this way that the developers of the Tezos blockchain-platform plan to go, which they position as an alternative to Ethereum.
3. ICO 2.0 - a new approach to attracting investment. The past year passed, one might say, under the flag of ICO. Projects appeared hundreds, collecting millions of dollars. Yes there! Tens and hundreds of millions. But where did these funds go? Were the investors satisfied? And what kind of development did the projects receive?
Alas, the situation with the ICO 2017 applicable joke beginning of the era of steam engines: "All the steam went into the whistle". According to analysts ' estimates, almost 95% (!) cryptoprojects stalled or seriously stalled in the post phase ICO. Yes, five hundredths lucky investors raised their profits to thousands of percent, but in other cases, the maximum that credulous tokens could count on is the alpha and beta versions that will appear ... maybe.
By early 2018, there was an objective need to change the approach to the ICO. As in the preliminary stages, and when considering projects as investment assets.
4. The arrival of institutional investors on the market. While the cryptocurrency market was small and just "learned to walk", the majority of players in the traditional finance world avoided it. With the development of technology and the growth of capitalization, even those who previously called them a soap bubble began to pay attention to cryptocurrencies.
What does this mean for the market? Just a few things.
First of all, with a high degree of probability, we can expect a new round of development - an increase in the number of investors and an increase in the volume of trading, mainly due to the arrival of "whales" of stock exchanges.
We can also assume that the analysis of investment objects will become even more scrupulous and the requirements for ICO will increase. After all, experienced players will come to the market who are used to not trusting, but checking.
5. The implemention of blockchain technology into traditional business. Long enough the blockchain technology developed, without interfering with traditional business, and has been implemented mainly in the virtual world. But long it could not continue and right now the integration is happening right before our eyes.
For example, the hype associated with the upcoming ICO from the team. If the project implement a TON, this will be the first large-scale project, when created and successfully working not on the blockchain app (Telegram messenger) will go to the cryptocurrency. According to analysts, the success of this idea is based on the fact that its developers have managed to develop a mechanism for the practical application of the blockchain.
And this will mark the beginning of a new era - the blockchain era.
Crypto technologies integration into daily life is a very topical direction, in which the commands Status, TenX, Kik, MobileGo and others are already working.
In 2018, the market of cryptocurrencies can get a new impetus to development due to the arrival of large investors.
There is every reason to believe that the market will become more regulated and therefore less risky. Also we can expect the emergence of new and exciting projects that will implements, with high probability.