Being a cryptocurrency investor can quickly cause vertigo. The natural ups and downs of the market can be anxiety-inducing, but a number of businesses are taking measures to continue the blockchain evolution. 2019 could be a year of changes for the market, and it’s well worth making plans in advance. If you want to get your footing in the future of cryptocurrency, here’s what you need to know.
1. Mass Adoption Still Just Over the Horizon
Many in the cryptocurrency community have trouble believing that cryptocurrency could be adopted on a massive scale anytime soon. After all, it will have been a decade since the creation of Bitcoin next year, and those who have been there from the start have already seen wild swings in valuation.
But it can be easy to get caught up in the insular nature of the community. It’s easy to remember that the majority of citizens in the developed world have only the vaguest idea of terms like cryptocurrency and blockchain.
Cryptocurrency is on the verge of breaking out in a big way, but it’s unlikely we’ll see it happening next year. Instead, we’ll likely start to see Asian markets slowly begin to integrate it into their economies.
That means that investors likely have another year to shore up their finances and prepare for a major boom. Patience will continue to be a virtue in the cryptocurrency market.
2. ETH and ADA Leading the Pack
If you’re going to bet on any cryptocurrency for 2019, Ethereum (ETH) and Cardano (ADA) have the potential to pay off big. While they may have both seen some tumultuous activity throughout 2018, they still represent some of the highest profiles and most sophisticated proofs of concept around.
It’s important to recognize that it can take some time to buy into a new technology, particularly when you have a brand as well known as Bitcoin. But the faster transaction times make Ethereum a promising investment, and it can easily exist as a complement rather than a competitor to more traditional blockchain like Bitcoin.
While Cardano may have a high level of liquidation in its valuation, that’s more the norm than the aberration in the cryptocurrency market. In addition to being one of the most advanced currencies on the market, it’s also promising Orobouros Genesis right over the horizon, and that’s a promising prospect.
3. Stability Through Valuation Models
The liquidity of cryptocurrency may make some investors leery about putting any serious money into a hot new thing like ETH and ADA, but we can look forward to some stability coming to the market in the coming year. The lack of meaningful valuation models up until now means that the market has largely been driven by personal feelings rather than concrete and underlying values of these currencies.
But the market’s grown big enough that many leading thinkers are pushing towards incorporating more substantive valuations into the markets. Chris Bursinke has been leading the charge with his thoughtful essays on the importance of valuation, but he’s just one of many discussing bold new changes.
As cryptocurrency moves further into the spotlight, more economists will start evaluating it seriously, and we can expect to see more stable markets. 2019 could likely be the year that the seemingly constant mutability that’s defined in the market develops into something more stable.
4. Big Successes For Bitcoin ETFs
It’s been a rocky road for the development of bitcoin exchange-traded funds. The lack of regulations has made the SEC hesitant to approve of ETFs for currencies widely seen as unstable. And since the CFTC ruled in 2015 that digital currency is accurately defined and lawfully tradeable under federal regulations, it’s more a question of “when” than “if”.
But the aforementioned potential for stability in the market could help give ETFs the shot in the arm they need. That’s a big deal too. Once there’s been a more long-term stability of the market, ETFs will seem significantly more viable.
This added level of legitimacy can be a huge boon for cryptocurrencies of all stripes. Successful ETFs could draw in institutional investors and bring in a whole flood of new attention to the market.
Just don’t expect the change to roll in at the start of the new year. The SEC has rejected proposals for ETFs in the past, but they loathe to stymie innovation. Once the market proves itself capable of maintaining stable, ETFs will have their chance to shine.
5. A Boost in Business Investments
Blockchain has the potential to revolutionize a number of diverse industries. We can expect that potential to finally come into its own in the coming year.
The reach here is vast. Companies like Rentberry are using blockchain to create a higher level of transparency and accountability in the home and apartment rental market. Then there’s SelfKey, which makes use of the Ethereum blockchain to rewrite the understood fundamentals of digital identity management.
And then there’s the future of blockchain as a service just waiting to break out big. Ardor is one of the biggest leaders in this market, but we can expect new contenders to climb their way into the market within the next passing year.
2019 could be the year that cryptocurrency explodes into the public spotlight. But even if they don’t crest the surface just yet, you can expect cryptocurrencies and blockchain to keep growing in prominence.