With thousands of new cryptocurrencies emerging, the landscape of cryptocurrency market is evolving rapidly. Today, Bitcoin is not the only cryptocurrency gathering limelight these days. The market has grown to a level where it cannot be ignored. This market has survived a lot of things, right from unpredictable government regulations and security features to major exchange hacks and ROI levels. 2019 has brought new found determination and fresh optimism in the cryptocurrency market.
Here are the key trends in the cryptocurrency market that you need to watch out for –
- Despite the volatility faced in the market, cryptocurrencies like Bitcoin are slowly becoming more stable. Along with Bitcoin, Ripple and Ethereum are among the top stable currencies. Due to the price volatility in recent past, several investors had lost their money in this market. But, the scenario has changed since 2017. Even in 2019, investors can expect subtle changes in the prices instead of extreme volatility.
- Dominance of Bitcoin has decreased sharply. The market share of Bitcoin was at its lowest point ever in the last year.
- Institutional money is expected to act as a catalyst in the market. Finally institutional money will enter into the cryptocurrency market, and it is expected to be a game changer. Cryptocurrency is strongly appealing to millenials, and the profit is attracting hungry institutional investors.
- Stablecoins is emerging as a bridge between crypto and fiat currency. These digital coins act as a cushion against tense conditions of the market. Stablecoins are being used as hedging tools, and will potentially lead to something greater.
- Cryptocurrency is expected to enter the mainstream market. It is reported that Goldman Sach’s is planning a Bitcoin futures trading to help its clients trade in Bitcoin. This move will also help institutional investors to invest in short term cryptocurrency.
- Decentralized exchanges are going to rise and will soon witness mass adoption. Centralization in exchanges basically defeats the purpose of cryptocurrency and as these currencies go mainstream there will be significant impact on exchanges. The infrastructure of decentralized networks has seen a huge stride in the last year.
- In the coming year, privacy protocols related to cryptocurrency are expected to gain traction. Instead of a single privacy based protocol, a host of privacy minded protocols are expected to enter the market.
- Not just cryptocurrency, its games, collectibles, virtual reality projects are expected to gain too. A meeting ground for all different kinds of cryptocurrency is expected to be introduced this year.
- Blockchain is the base of cryptocurrency, and it is expected to attract investment. The research is mainly expected to be focused on security changes and technological innovations. It is also expected that hybrid coins using fundamentals of blockchain technology will emerge.
- There are thousands of cryptocurrencies in the market, but not all of them will do well. Only cryptocurrencies that add value to investors will perform well, others will face elimination from market.
Cryptocurrency and blockchain have successfully created a transparent system for distribution and supply of money. Period of flatness faced by some currencies is expected to end, and competition is expected to increase stiffly. Innovative blockchain based devices like smartphones will offer a secure cold storage wallet to users. Devices like the FINNEY will certainly bridge the gap between mass market and blockchain economy.