Cryptocurrencies exceeded expectations in 2017 after breaking through the public domain. Blockchain technology is now considered a pivotal innovation that we haven’t witnessed in years.
Even when the overall market has been on a drop in January, cryptocurrencies are growing and taking a stand as a vital technological asset and consumer product. Investors and analysts consider the next few months as critical for crypto and look to continue to monitor their maturity in value.
If you plan to invest in cryptocurrencies, make sure you watch out for these trends in 2018:
1. The Stable coins
Cryptocurrencies have seen an exponential growth over the last couple of years among businesses worldwide. One of the first envisaged applications for the blockchain technology was its usage as a digital currency that would facilitate secure payments and swift transactions. However, one of the biggest issues that crypto trading faces is the level of volatility. It has been boon as well as bane for the market. While it offers active traders to take advantage of the swings and earn significant daily profits, if you take your eyes off the charts even for few minutes, you could miss out on an opportunity or suffer a loss. This level of volatility in the trade renders most tokens unreliable for everyday transactions and commerce.
Stablecoins could help overcome this downside by allowing investors to peg the token fund to another crypto asset that is less volatile such as fiat currency. Stablecoins are referred to as crypto assets designed to reduce volatility affecting most cryptocurrencies. They hold their value for a longer period of time. They serve as an ideal asset for investors to safeguard their portfolio from market’s massive swings. Several attempts have been made to deliver viable stablecoins into the crypto market, with most parking their token value to the US dollar. Tether is considered to be the biggest and most popular stablecoin yet. It sets the value of tether against the US dollar. To do this, however, it must hold cash (USD) privately to keep tether in circulation back and forth as required. Tether, the company, acts as a centralized authorized controlling the flow of tethers in the market. However, Tether has come under great scrutiny lately with concerns raised about its legitimacy and transparency.
Advocates of stablecoins are focused on devising an alternative approach towards maintaining a consistent token value. This new approach backs each token with another decentralized crypto asset, thereby depending on smart contracts to hold collaterals rather than on assets held privately. This approach offers price stability without compromising on transparency. Keep an eye out for stablecoins in 2018.
2. Revamping of Crypto Exchanges
December 2017 saw a massive boom in a number of buyers of cryptocurrencies. Many exchanges had to shut themselves off to new users due to server accommodation constraints. Now as the value of cryptocurrencies dropped over the last month, may potential buyers are now choosing platforms to purchase cryptocurrencies.
Cryptocurrency exchanges have noticed this change in behavior and are focused on improving the user interface and user experience. They now allow for swift and unlimited transactions with ease of conversion to fiat currency. Cointal is one of the examples of these exchanges that various functionalities such as beginner assistance, live support and insurance on transactions. You can purchase any currency such as Bitcoin, Ripple, Litecoin etc. The purchase is free of any other hidden fees. This platform serves as a great alternative to traditional exchanges.
3. Application to B2B markets
In the B2B market, the list of use cases is seeing a rapid increase as new decentralized apps are built and blockchain technology targets new areas such as sports, transportation, and real-estate. NewEra, a block chain-enabled carbon credit certification protocol, is one of the pioneers in cryptocurrency use cases.
This firm has developed a blockchain to record and incentivize a cleaner energy footprint. Their customers produce ERU (Emission Reduction Unit) that can be exchanged for NERA tokens for use within the community. NewEra aims to build a green economy using blockchain.
4. The influx of the Big Players into crypto.
The growth of cryptocurrency has not gone unnoticed among the Big players in the traditional marketplace. We could see likes of Goldman Sachs, JP Morgan and even Wall Street adopting cryptocurrency. The investment from any of these big players could have massive implications in the crypto marketplace. Goldman is already working on setting up cryptocurrency trading desk.
We could possibly witness major developments in cryptocurrency regulations, blockchain technology and public sentiment in the next quarter or two. So, stay informed and follow us for more updated information and crypto trends on Cryptocurrencies.