Crypto Trends 2019
The year 2018 was a turbulent year for all cryptocurrency holders and investors. The price is down over 80% from the highs of the end of last year.
Major trends of 2019
Retail investors drove the market during the last bull run, and many say that institutions might ignite the next. However, the institutions do not want to buy a bitcoin at $20 000 per coin. They want to buy at the lowest price possible, and the big players will most likely enter the market in 2019. Therefore, the market might see one last capitulation where the money goes from weak hands to strong hands, aka the institutions.
Trend one – Institutions will enter the market
Institutions that are entering the market with millions of its customers. At the moment there are only 5 million active bitcoin wallets. Imagine what several more million customers from the worlds largest institutions will do.
Trend two – Regulation and the emergence of security tokens
Startups and companies are looking into different ways of raising capital. Instead of creating an ICO with utility token, many new companies are creating security tokens (STO). A security token is, in reality, a share of the company. A utility token, on the other hand, is nothing more than a piece used in a company’s ecosystem. Many argue that security tokens will be the future and breakthrough during 2019. Even Nasdaq wrote: “If 2017 marked the emergence of initial coin offerings and 2018 has been the year of regulatory uncertainty around those ICOs. Then 2019 will belong to the security token. So far, security token offerings make up only a relatively small percentage of ICOs. But that will soon change. Security tokens, not utility coins, will attract significant amounts of Wall Street money next year.”
Trend three – Stable Coins
Another trend that is under development is stable coins. A ”stable coin” is a cryptocurrency that holds a stable value. The coin gets pegged to another stable asset such as gold or the U.S. dollar for example. Unlike our traditional stable assets, a stable coin is global and not tied to a central bank. The masses are watching the crypto market but are not entering because of the volatility. Stable coins are the solution.
Regarding the future of stable coins, they can indeed drive adoption. The potential for stable coins is huge, in everything from crypto insurance to lending and savings means entrepreneurs also hope there can be room in the market for many successful, stable coins.
Summary
All pieces are coming into place. If bitcoin were seeing its last days, the major players mentioned would not be entering the market like they are. The market is giving us a second chance to enter at low prices. It would be worrying if the market were falling and that no development would occur. Then there would be a reason. Now, however, the market is growing every day just like the internet we use today the blockchain and cryptocurrencies will most likely have a big part in all of our futures. Bare this in mind. The internet we use today is not the internet that was created during the 1990s.