While 2017 was a breakout year for crypto currency, 2018 looks to be a challenging year for investors. While the case for crypto currencies has only improved, the continued breakdown of G20 economies and the looming debt crisis looks to ignite demand for crypto currencies. However many issues face the crypto community and perhaps the biggest one is the sheer amount of questionable investments in the space. We have seen pump and dump coins and ponzi schemes as well a general trend for people to pile in to the space with little or no research.
Tactics that worked well in 2017, are likely to cause issues with certain investors. It hasn't gone unnoticed that many investors have bought coins simply for the cheap unit price and could certainly be one of the reasons for Ripples recent performance as well as the fact that Ripple is the bankers coin. Investors will need to take more care moving forward and to invest in the ideas that have genuine utility and solve a genuine business and real world issues.
2018 through to and including 2019 is likely to be the period that many crypto's fail, if the current stalling of the market cap continues. With a lack of new money coming in to the crypto sphere, it is important to not simply follow the herd into overly speculative investments. The recent performance of Tron shows how a fear of missing out has lead investors to invest money at all time highs and with the latest pull back over the last 2 weeks has left many investors exposed to losses.
Bitconect is yet another example of investors failing to do there due diligence in picking investments. As a group we owe it to ourselves and the rest of the community, to spread better knowledge or we face a massive possible backlash from potential government regulations.
Moving forward I urge investors to wait until the market improves and to cash in any overly speculative investments, into crypto investments which have a proven success rate and real world functionality in the now.
Steem is a great example of an investment which already has real world uses as a disruptive technology and is an investment with a very ethical core