Despite the Bitcoin bubble having burst since December of last year, the consensus amongst the tech world still remains the same- the underlying technology, blockchain, is a revolutionary one. Tech enthusiasts remain convinced in the power of blockchain and are sure that cryptocurrencies will bounce back.
Keeping those beliefs and past trends in mind, here are a few cryptocurrency trends to watch out for in 2019:
- Rising use and popularity of stablecoins.
With the boom of Bitcoin value last year, and it’s continuous rise over the last few years, we’ve seen enough evidence that suggests that cryptocurrencies offer a wide range of potential uses for the finance sector. It is, after all, one of the most apparent applications of cryptocurrency.
However, one big obstacle that prevents this from happening is the volatility of cryptocurrencies. The sort of fluctuations that cryptocurrencies see within a day, or even an hour, make it a really unsuitable store of value for everyday commerce.
Stablecoins aim to change that. The fluctuations will be severely reduced by pegging the cryptocurrency token to another asset, such as a fiat currency. Tether is the largest stablecoin currently, and it pegs the value of a Tether to the US dollar. The USD is held privately, and new Tethers are issued by swapping back and forth between USD and Tether. However, some concerns do remain about the transparency of Tether operations.
- An increase in consumer participation in the crypto market.
The rise in popularity of bitcoin was a huge boost for cryptocurrencies, but still, even today, each day more and more people learn about blockchain and cryptocurrencies and their tremendous power. And more and more people are trying to buy in, but this time in a more organized, organic, and informed manner, in contrast to the frantic rush towards the end of 2017.
- Institutional funding for Crypto
Many of the people who so far have been skeptical about cryptocurrency have the same, widely held concern- the legality and adoption of cryptocurrency. Many have been closely following the large financial institutions, hoping for some clue discerning their stance on cryptocurrencies. It does seem like the question is not “will they?”, but rather “when will they?”. After all, Goldmahasve already setup a cryptocurrency trading desk. The day that Wall Street finally makes a decision on cryptocurrencies will be a big day indeed, but so far, the evidence suggests that the big institutions are moving towards understanding and adopting cryptocurrencies,