Trends in Cryptocurrency

By: Rebecca Clinton-Floyed

6, November, 2019

Categories:

Blockchain -

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Trends in cryptocurrency

Bitcoin is nearly 10 years old now since it was introduced to the world in 2009. Thanks to the pseudonymous Satoshi Nakamoto’s invention of this first decentralised cryptocurrency that gave birth to countless other cryptocurrency types that are in use today. Having majorly disrupted the financial system already, the limitless capabilities of cryptocurrencies have become more widespread across businesses, the financial sector, governance, and consumer retail.

The cryptocurrency phenomenon has also witnessed both highs and lows over the years, affecting many investors. Most of them lost their assets during the market crash in 2017 wherein they lost their assets; however, the year 2018 was a bit relief as the market rose up maintaining a balance. The year 2019 can be seen as a positive year where the emerging trends suggest how cryptocurrencies will be welcomed into the financial sector. Those interested in investing in crypto coins or still speculating if it is worthwhile to pursue, must read further.

Below are some of the trends to expect.

Rise in the number of decentralised exchange platforms

Several exchange platforms offer flexible payment methods, allowing purchase of digital coins. Cleveland, Tennessee-based Check Into Cash is one such renowned financial services retailer in the United States that offer such a service. With an increasing number of interested investors, exchange platforms around the world will have to adapt to an advanced mode of conducting transactions.

In 2019, one can expect growth in decentralised exchange platforms that remove the need of intermediaries who earn a percentage of the money for their service. These platforms, which run on the blockchain technology, are extremely secured and immutable in nature so much so that even the third-party hackers find it difficult to get into them. Once the number of these platforms is on the rise, only prominent cryptocoins like Bitcoin, Ripple, and Ethereum will be used for sending and receiving payments.

Increase in STOs

Several institutional investors have either favoured or disfavoured crypto coins since they have existed — either due to lack of centralised distribution or because they are part of numerous fraud cases. To put an end to this, many experts have made sure these issues shouldn’t become a problem for traditional traders.

In 2019, financial regulators supporting STOs may create an opportunity for more and more institutionalised investors to take interest in the crytocurrency market. It is said that the STOs will be taking over ICOs for the following reasons:

  • STOs have limited exchange platforms for SEC compared to ICOs
  • STOs fall under the Securities and Exchange Commission (SEC) for traders in the US
  • STOs are supported by company shares, dividends, and investor benefits
  • STOs compared to ICOs are safer and lesser susceptible to frauds

STOs and ICOs have their own merits and demerits, but as the number of ICO scams increased gradually in 2017, the need for security too rose since then. And as STOs are recognised by financial regulations, they will sooner or later replace ICOs as better investments for everyone is involved. Hence, more people are looking into STOs in 2019.

Increased number in educational resources

In 2019, innumerable experts could be investing in providing more educational resource materials for the public, encouraging potential investors in the market. The number of seminars, webinars, video tutorials for youngsters interested in the cryptocurrency industry, is expected to increase as a number of channels are becoming readily available.

In addition, the number of online communities, forums, and new mobile trading platforms that allow traders to manage their account and stay updated with the market on the go is also expected to rise gradually.

Stability in price

In 2017, the value of Bitcoin fell dramatically low and then suddenly went high after a couple of weeks. Many investors lost a significant amount of profit during this phase and many became sceptical due to the crypto coin’s price volatility. In 2018, the changes of prices between crypto coins normalised and were not as volatile as it was in the previous year. This indicated that the price of Bitcoin and other crypto coins was stabilised after numerous institutions accepted it as a form of payment.

In 2019, investors can expect the same subtlety but with less price volatility as several measures are being implemented to secure investors from scams and fraudulent activities.

Availability of improved cryptocurrency analysis tools

It is said that cryptocurrency websites will have better analysis tools and programmes in 2019 to help estimate the movement of the market. Users intending to invest in cryptocoins can simply go through multiple analysis tools like Binance, Coinbase Pro, CoinMarketCap, etc. These websites keep a track of more than a thousand kinds of crypto coins.

In 2019, hundreds of similar analysis tools are expected to pop up online for the public.

Takeaway: Many financial institutions are now accepting crypto coins as a form of payment, which is a promising sight for investors. However, it is advisable to do a thorough research before investing in potential coins to avoid any uncertainty or risks.

References:

https://www.accountingtoday.com/list/4-cryptocurrency-trends-for-the-next-5-years

https://toshitimes.com/6-cryptocurrency-trends-for-2019/