Is Cryptocurrency market maturing to a better future?
Jan 16, 2018 Posted / 5110 Views
The year 2017 provided massive gains to the cryptocurrency market and major applications started developing on its protocol. People started getting huge returns as the awareness pertaining to cryptocurrencies increased. The significant development in this matter remained the blistering pace with which the complete ecosystem is being driven by the investors’ insights to grow.
Read More Related Articles
The cryptomarket has expounded with an exponential speed over the past few years, however, it experienced its fair share of skeptics. Many analysts since past years had been equating the cryptocurrencies to the Tulip mania and the Dot-com bubble of the early 90s.
Nonetheless, trading vulnerabilities and the market volatilities over the past few months have only added pain to these overflowing assumptions creating FUD- fear, Uncertainty and doubt. The result of these social media rumors- Bitcoin crashed nearly half its value in a single day. However, this isn’t the only analogous incident massive price swings are a very major distress for the cryptocurrency market along with incredible market instability. Although there are many enthusiasts and analysts which state that even if the industry is called as bubble it could lead to a more mature and innovative market.
The topmost currencies such as Bitcoin and Ethereum are steadily entering the financial mainstream market. The reason being that the traditional exchanges is gradually offering more related mechanisms to append with digital currencies. Also, more and more businesses are starting to accept more cryptocurrencies as payments. However, the question that dictates the minds of majority of the users is that if the crypto market simply booming or is it finally maturing
Moreover, the current boom in crypto valuations has been driven in large part by a completely unregulated ecosystem. It seems to reward the flashiest assets, even when their practical applications may be dubious at best. This is clear in the outsized capital many Blockchain-based companies have raised. In the second quarter of 2017 alone, ICOs raised nearly $800 mln in funding, with the first six months yielding $1.3 bln in capital.
Even as cries of a bubble get louder, the crypto market has actually trended in the direction of maturation. For one, governments are starting to recognize cryptocurrencies potential and embrace them in some ways. Japan recognized Bitcoin as a legal payment method in 2017 as well as certifying several cryptocurrency exchanges to operate within its borders. Russia announced plans to create its own cryptocurrency, the CryptoRuble, and even Venezuela has revealed plans to launch its own coin.
Others have begun to regulate the crypto market, offering optimism that increased stability will lead to greater adoption. The EU and several Asian countries have enacted new laws to fetch some discipline to the market. Even in the US, major exchanges have begun offering Bitcoin futures as tools for more institutional investment contribution.
More significantly, however, businesses and entrepreneurs have clinched on Blockchain, the market’s underlying technology, designing a thriving ecosystem of applications and services.
At present, most companies still depend on Ethereum’s ERC-20 protocol and smart contracts to build new applications, but that model is still dev-heavy. as an alternative, some companies have already shown better pathways to developing Blockchain-based apps.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.