How does 2019 Look For Cryptocurrencies? Is there hope?
The year 2018 has been a disappointment for cryptocurrency fans and investors. With Bitcoin prices falling over 80 percent and its ripple effect on other altcoins and tokens, it has been nothing, but a double whammy for the crypto enthusiasts.
Blockchain technologies, however, have seen massive growth and are being recognized by the government and private sectors alike, who are now investing their time and money in exploring and finding many use cases the technology can deliver.
Now, as we have entered the year 2019, there is a lot to look forward, and we have summarised a list of developments we can expect this year 2019.
Rise of STOs
For those of you who have been following the Blockchain market for a while, you must be familiar with the increasing number of challenges that the ICO market is facing. With practically no regulations, this industry has made it very hard for retail investors to have a say in the development and delivery timelines post-ICO
A solution to this has come in the form of Security Token Offering or STO, which has made it comparatively harder for the scammers to conduct frauds and hence has increased investor confidence. Also, major corporations like Apple and Tesla showing support publicly further shows that the year 2019 may see a rise of STOs.
Greater Adoption
Unwilling to accept cryptos as a possible medium of exchange, most governments across the globe had a negative outlook towards the whole concept of decentralization and Blockchain. However, as the interest of the community has shifted from cryptocurrencies towards the underlying technology, the decision makers are no longer shy to accept that Blockchain might no be so bad after all.
The U.S.A, for example, has started a subdivision within SEC to monitor crypto funds and to regulate their use. Countries like Malta, Estonia etc. are looking forward to establishing a decentralized economy within their state.
With these countries leading the way, other governments might finally be willing to give this technology a chance, of course within regulatory barriers.
Bitcoin Futures Listing, Upgrade For Ethereum
With cryptocurrencies having a roller coaster ride in the year 2018, the following developments show positive growth for them in the year 2019:
NASDAQ Listing
Despite the plunging prices of Bitcoin, NASDAQ is planning on listing Bitcoin futures. NASDAQ, an American stock exchange, according to reports published in Bloomberg has agreed to register Bitcoin futures after obtaining necessary permissions from Commodity Futures Trading Commission.
Ethereum Upgrade
Ethereum in the year 2019 is planning to include two significant upgrades in its Blockchain. First is the Constantipole upgrade, which is designed to reduce miner rewards and make the Blockchain more ASIC resistance. The second upgrade is focussed towards including Casper Protocol and Sharding.
With these two significant Blockchains upgrades and adoption, the overall market for cryptocurrencies is headed towards a brighter future.
Cryptocurrency Investing
With the 2018 cryptomarket not in its best shape, most of the investors and traders were a bit skeptical about investing in cryptocurrencies. However, now with the beginning of new year, it would be interesting to see if there are any new overarching frameworks that the industry adheres to or such regulations tend to have a negative impact on the existing crypto market.
However, an important thing to consider here is the fact that crypto market has moved out from its infancy and has transformed into a highly functional digital asset, in which major players have begun to invest in. Though there is still sometime before the crypto assets start being traded and accepted as readily as bonds and stocks.
Regulations and Governance
The idea of creating a decentralized class of assets was welcomed with open arms as it was introduced to the industry. After all, no intermediary, no corruption and no overhead costs, what more could a user ask for?
However, soon after the hacks on the exchanges as well as the increasing number of scams, it was thought that some kind of regulation is necessary.
The problem here again is the decentralized aspect which vanishes if regulatory restrictions and control are imposed.
A possible solution might be a framework designed by world leaders and bureaucrats, which doesn’t affect the fabric of Blockchain, but at the same time does help investors be aware of possible risks associated with crypto investing.
Conclusion
While the year 2018 sure was exciting to watch, 2019, we believe will prove to be filled with more twists and fun. Whether or not it will be able to surpass the year 2017 as the golden phase of crypto– is something even we are curious to see.
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Originally published at blog.tokenasia.com on February 1, 2019.
