9 Cryptocurrency Trends for 2019
9 Cryptocurrency Trends for 2019
Since the advent of Bitcoin, it has been one of the most volatile cryptocurrencies. However, since 2018, it has been witnessing a dull period. This has not only created a downward spiral but also caused a significant setback towards mainstream adoption as people lost a major chunk of their investment.
It has been proven that identifying a single cause of failure is futile, which in turn makes it much harder to forecast the trends that will be dominant in 2019. It can be predicted that one of these trends predicted by financial experts may become a reality and can help you make a more informed decision regarding your investment.
Trend #1: Crypto Trading may become independent of margin
A majority of the traders kept their earning through margins which caused their saving to drop further with the steep decline in Bitcoin prices. With cryptocurrency transactions coming under the radar of tax authorities, traders had to pay a hefty tax on the gains obtained from crypto-trades. This led to a major disappointment amongst the trading community. Crypto-trading may focus more on market trends rather than the available margins as holding on to a cryptocurrency has led to huge losses.
This also means that major crypto exchanges will lock horns to ascertain their market domination. As it is being predicted that crypto-to-crypto exchanges may remain stagnant during the upcoming year, it’s loss will mean gain for crypto-to-fiat and fiat-to-crypto exchanges.
It is also highly unlikely that seasoned investors will shy away from trades that do not trade directly with fiat.
Trend #2: Lower Volatility in Prices
Any volatility in the Bitcoin prices affects the industry at large. Since the past year, the volatility has seen an almost flat curve. Seldom would one find instabilities that existed for a period of more than 24 hours.
As cryptocurrencies are gaining more stability by incorporating the latest trends, it is very likely that the volatilities will be subtle in the upcoming year. Steady growth of your assets is much more beneficial in the long run when compared with incessant fluctuations. Once cryptocurrency establishes itself as a stable investment, it will attract investors from all sectors of the society which is essential for mainstream adoption. With lesser volatility in the prices, one can easily plan on placing a crypto sportsbet.
Trend #3: A Slow but Steady Rise in the Number of Investors
As Institutional investors are treading with higher caution to avoid losses, safeguarding their investment has a more top priority than generating profits. This has made it very difficult for crypto-markets to get a piece of the cake offered by financial institutions. Some experts also predict that institutional money may still require a good number of years to enter the crypto-market fully. However, with Bakkt and other financial institutions entering the race, one can expect a steady rise in the number of investors in 2019.
Various institutions are also hinting at the development of blockchain-based financial products which may add further impetus to the growth of cryptocurrencies. However, with a lack of concrete ideas being put on the table, it is difficult to predict the flow of investments.
Trend #4: News and Events Will Exert lesser influence on the Market Movement
Crypto-trades suffered greatly due to speculative news articles which later turned out to be a damp squib. There have been various spurs which were triggered by rumours but helped people churn out great profits. These trends may actually start diminishing as traders are now much more aware than they were initially. With wider markets and better technology, traders are more driven by fact-based evidence rather than speculations.
With users experiencing a bloodbath in 2018, it is doubtful that speculation-based news or events will trigger market movement.
Trend #5: A Shorter Bull Run
Bitcoin was trading at a unit price of over $12K. After hovering at that price for a certain amount of time, there has been a steady decline in the prices reaching as low as $3.5K. Although it is evident from the past trends that Bitcoin was able to bounce back significantly after a period of lull, it seems unlikely that prices will acquire the same heights as it did back then. As bull runs are gradual compared to bear market fluctuations, a steady increase may not be very beneficial for the cryptomarket.
Trend #6: More Crypto-based Startups may face closure.
There has been decrease in the number of crypto projects that have gone under the knife in the past few years, and it is very likely that this trend will continue. Calling it quits has increased. The shutdown of Basecoin raised many eyebrows in the crypto-trading community. Most of the crypto-based failed to predict future liabilities adequately. They were left with no choice but to abandon their projects to avoid further piling up of their debts.
Also, it has been observed since cryptocurrencies are coming under the radar of regulatory authorities; they have to comply with stricter policies. This has left many businesses in the lurch due to rising uncertainties. Crypto-businesses are also finding it difficult to acquire funds as investors are shying away from the crypto space due to the unpredictable nature of growth.
Trend #7: Finding a solution to Scalability Will Still Be A Challenge
The reason why cryptocurrencies are unable to compete with traditional modes of transactions is due to the fact these crypto-trades take place exceptionally slow. There are various centralised fund transfer businesses like VISA which are achieving rates of over 30,000 operations per second while a cryptocurrency like Ethereum is still unable to cross the mark of 15 transactions per second. Lightning Network and Dapp are promising technologies but may even require some time to make inroads in the crypto.
Trend #8: Serious Efforts Towards a State Cryptocurrency
The Venezuelan government has launched their national cryptocurrency, and the Petro and various other countries are in talks to follow suit. With speculations about Russia launching their own cryptocurrency dubbed as the Cryptorube, many other countries are joining the race to launch their own currencies which fits within the regulatory framework.
Trend #9: Security Tokens May Reach Unprecedented Heights
Security tokens were cursed by regulatory frameworks which caused a decline in the number of traders opting for these. However, with a much transparent regulatory framework in the pipelines, security tokens may soon overtake traditional tokens. As security tokens are back by a stake in the issuing company, it is much more favourable over conventional tokens.
Author: Davey Cross
David is currently studying electronic commerce at the University of Gdansk. He loves writing about IT, Cryptocurrencies, Economics and Finances.
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