Cryptocurrency is still far from stability and strong fluctuations in their value – not uncommon in 2018 impacted by the uncertainty surrounding regulation, even after the recognition of cryptocurrency in some countries as legal tender. Cryptocurrencies are poorly used in real life, while remaining more speculative means. Now based on the current events occurring in cryptosphere, you can predict what will happen to the crypt in the following year.
The creation of ETF funds for cash
The decision to create ETF for the cryptocurrency was to be taken by the SEC in August 2018, But the securities Commission had exercised its right to postpone the final decision on this matter and the verdict at the end of September. Recall that one of the applications (filed the second time) the SEC already rejected in August, just a couple more.
This event we have identified separately as it can become the trigger after the operation which the crypt comes the really big money. Yet with this there are problems.
If a favorable decision on the creation of ETFs, it is guaranteed to push the stock market up, will increase the cost of Bitcoin and altcoins. This impact is not limited to only one, 2018
Summer has been a situation where waiting for a positive decision of the SEC, the cost of Bitcoin has increased by about 25%. Then followed by an equally sharp drop in Bitcoin to $6000 in 1 VTS.
Yet institutional investors remain largely out of the crypts. They are literally waiting for the go-ahead to enter the cryptocurrency. Those who are at risk to work with cryptocurrencies now, open long and short positions, besides such of investors and the General state of the crypts they affect slightly. Interest funds investing for the long term (e.g. pension funds or mutual Funds), they prefer reliability and therefore is outside of the cryptocurrency.
The solution to the problem of scalability of the blockchain and its use in everyday life
One of the main problems of cryptocurrency at the moment is that they remain speculative assets. That is about the benefits and advantages of the blockchain say constantly, each new project in theory aimed at solving real-world problems, but in the end, to widespread its use far. In the end, the crypt remains a frankly speculative asset.
An unresolved issue is the scalability of the blockchain and this issue is very serious. The financial area was the first in which cryptocurrencies were used broadly enough and then critical network bandwidth. This indicator popular Bitcoin and Ethereum cannot yet match, for example, Visa or Mastercard.
The figure above shows the change in the time of the transaction confirmation in the fall of 2017 when transferring Bitcoins. As you can see, will have to wait a few minutes – this is clearly not the result if to compete with the standard payment systems.
According to the founder of Zerion, Yuri yurtaeva in 2019, the scalability problem is not going anywhere. Developers working with bloccano Ethereum, Bitcoin will continue to deal with this problem, but is unlikely to solve it quickly.
The problem of the stock market will be that most projects do not have sufficient flexibility and remain highly specialized solutions. Their economic viability is limited, which pulls the market down.
The CEO platform for tokenization the business Waves, Alexander Ivanov, says that in 2019, plans to introduce cryptocurrency to the masses, but to the widespread use of the blockchain in the next year, we have not yet come.