In order to calmly evaluate the situation of the cryptocurrency market, you need to let go of all the hype and see the facts.
It’s been a long time since Nakamoto’s white paper on Bitcoin was released in 2008. Although Bitcoin has become a force that cannot be ignored, it has changed some people’s views on money and the future, but it has been extremely unstable in the market. Everyone is stunned.
It can be said that there is nothing more difficult to predict than the cryptocurrency market, which is particularly evident in the course of 2016 to 2018. Many don't remember that there are as many people who are pessimistic about Bitcoin and those who are optimistic, from $1,800 to $19,000. Since Bitcoin has reached its peak, every time it falls, it has been said that the end has arrived and Bitcoin has no future.
In order to calmly evaluate the situation of the cryptocurrency market, you need to let go of all the hype and see the facts. The following are nine predictions of the 2019 cryptocurrency under the observation of the author Samantha.
First, the game industry will adopt blockchain technology
The blockchain game that uses tokens as a game currency is just one way to go into the huge field of cryptocurrency. The blockchain can bring to the game industry something that has long been lacking - stability.
The game industry is experiencing scandals of data breaches almost every few weeks, and this problem needs to be resolved too much. This is especially important in the spinach industry because the spinach industry is at the intersection of money and emotion. Other game companies are looking for innovation opportunities in this market, and future online game props can be bought and sold in cryptocurrencies. The development cycle of such projects is generally long, and 2019 will be a full-blown period.
Second, retailers will begin accepting cryptocurrencies
This year, Microsoft, Starbucks and ICE (Intercontinental Exchange Group) reached a partnership, which is one of the signs that retailers will accept cryptocurrency as a simple payment method.
This is only when other companies see Starbucks customers using a newer, faster infrastructure and buying products in cryptocurrency. In today's era, especially in foreign markets, refusing to pay by cryptocurrency would mean refusing potential revenue-generating opportunities, especially as more and more people start to choose cryptocurrencies as their preferred payment method. It's like a store that offers credit card payments to consumers for more profit. A store that accepts cryptocurrencies can also significantly increase its influence in the market, which is a matter of time.
Third, the market will calm down
It is expected that the cryptocurrency market will calm down next year, in part because of the pain after the bubble burst. Although Bitcoin is depreciating, there is still room for profit in trading in the cryptocurrency market. For example, even in the worst economic downturn in history, the exchange Coinbase can earn hundreds of millions of dollars. Many startups look for profit opportunities in AI, predictive analytics and valuation tools that can narrow interest rates and help asset pricing for this young market.
Fourth, securities-type tokens will become popular
The US Securities and Exchange Commission (SEC) recently issued a statement saying that some cryptocurrencies are characterized as "securities tokens" and will be regulated by the SEC. Many people believe that the securities token will be the protagonist of the next wave of gold rush.
Real estate, vintage cars, wine and art, etc. can be tokenized. This model will increase the liquidity of assets and create a richer potential choice for investors. They are called "securities tokens" because they must be supported by certain tangible assets, such as the company's stock or profits. The token of IC0 is usually just a verbal promise without endorsement.
STO (securities-based token issuance) requires approval from the US SEC and various other regulatory agencies, which means that securities-type tokens have the property of being protected by conventional assets and also have the benefits of digital currency. In fact, any physical asset, whether it is a ship, real estate or stock, can be tokenized and used as a support for a securities token. In the next few years, the most explosive potential in this field.
V. Decentralized exchanges will rise
Today, centralized exchanges dominate the world of cryptocurrencies, such as currency security, OKEx and fire currency. According to statistics, 98% of transactions are done on centralized exchanges, while only 2% are on decentralized exchanges. Centralized exchanges have market needs, and everyone knows this. But what are the disadvantages? commission. Decentralized exchanges are not at all, or significantly less than centralized exchanges.
Centralized exchanges can be hacked, charged, and recovered long after, making it increasingly difficult for them to consider decentralized alternatives. Despite the slow development of the first decentralized exchanges and the lack of liquidity, there are already projects that can solve this problem. As the ecosystem improves, these exchanges are expected to become more and more popular. It will also raise a height.
Sixth, the revival of anonymous coins
People in this era urgently need privacy, and this demand has spawned the anonymous coin market, especially when cryptocurrencies such as Bitcoin are proven to be traceable. Developers are looking for new application mechanisms and more and more advanced solutions to ensure user security and privacy. Undoubtedly, these anonymous coins will gain a lot of supporters, so it seems that the future of anonymous coins is guaranteed and there is a lot of room for appreciation.
Seven, the first cryptocurrency ETF
Bitcoin is the best candidate for the world's first cryptocurrency ETF (Exchange Traded Fund), which will increase the choice of institutional investors and retail investors. At present, many companies' ETF applications have been rejected by the SEC. Analysts expect the first bitcoin ETF to be approved in February 2019.
Bitcoin is often associated with payment methods. In fact, its main competitor is gold and silver. The lack of regulation and related criticism has been putting severe pressure on the value of all digital currencies. However, today's international standards for regulation are being developed, and the more protection they receive, the more trust they gain. Once regulatory issues are resolved, hundreds of billions of dollars from investment funds will enter the market.
Why didn't you do this before? The reason is simple – investors have no chance to invest in assets outside the scope of regulation. Therefore, the launch of an ETF fund based on the largest option exchange will make investing in cryptocurrency a legitimate choice for institutional investors.
Eight, DApp will be popular
"Encryption Cat" is the first example of DApp and is very popular as soon as it comes out. Although this is a good example of the difficulty of blockchain, projects like Casper in Ethereum will overcome these difficulties.
This DApp based on the new blockchain technology opens the door to the new world. Although the DApp standard cannot be summarized in a few words, the following list can be used as a reference. Without one of the rings, it can't be said to be a standard DApp.
Decentralization. Really use blockchain technology;
Incentives. In order to promote its own development, DApp should have a suitable token incentive program;
Open source. The code is open to everyone, and the source code of the application is constantly improving;
Algorithm/protocol. DApp should have a set of appropriate consensus mechanisms built in and have a way to generate new tokens.
Nine, the cryptocurrency market will grow
Although cryptocurrency has been declining in 2018, the development of cryptocurrency in 2019 is quite favorable. This forecast is related to the regulatory restrictions associated with the IC0 and cryptocurrency issued by the US SEC. This regulatory measure will make investment digital assets more legitimate and secure, thus attracting institutional investors' attention to the industry.
Due to the many frauds and speculations in the cryptocurrency market in 2018, many institutional investors remain cautious about the industry, and reasonable regulation will greatly alleviate this concern.
to sum up
Today, the right entry barrier is a protection for investors, avoiding huge losses like the recent plunge. When the market goes down, you can choose the most promising altcoin, but all investments require extreme caution.
Fortunately, the cryptocurrency industry is maturing, and most of the reasons that caused high volatility are slowly becoming irrelevant or even completely disappearing, making digital assets more reliable over time and promising More convenient financial tools. (Bit Wu Community)