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What to Expect from the Cryptocurrency Market This Year?

CryptocurrencyCryptocurrency has become a global phenomenon since it emerged a few years back.

Many businesses and individuals have taken interest in digital money, with someone already investing in it.

Just recently, gaming company Atari has announced that it is coming up with it own cryptocurrency named “Atari Token.”

There are also individuals who have become billionaires as a result of their Bitcoin (BTC) investments.

Those who are planning to invest in BTC must know the following predictions about cryptocurrency this year.

Cryptocurrency Predictions

Here’s what Don Tapscott, co-founder of the Blockchain Research Institute, believes what’s in store for the cryptocurrency market for the rest of 2018.

In an Express article, Tapscott enumerated 10 predictions for the digital currency this year. They are:

  • Cryptocurrencies value will continue to grow, and more people will invest
  • Businesses will embrace cryptocurrencies and look at innovative blockchain projects
  • The new platform for value creation emerges
  • The $10 billion Initial Coin Offering (ICO), as ICO shifts towards equity tokens
  • Taking ownership of your data
  • Technology giants will embrace cryptocurrencies
  • Implementation of fiat cryptocurrencies
  • 2018 will be the year of regulation for blockchain and cryptocurrencies
  • Blockchain breakthroughs on tokens generated from sustainable sources
  • Cryptocurrency security will become even stronger and more secure

With regard Tapscott’s second prediction, there already are businesses that accept Bitcoin and cryptocurrencies.

Among those companies are Save the Children, Microsoft, Virgin Galactic, and Wikimedia Foundation (curator of Wikipedia).

If you plan to invest in cryptocurrency, there are three things one must know.

A Fortune article, however, has enumerated three things to know about cryptocurrency investing.

1. Cryptocurrencies trade like volatile commodities

Cryptocurrencies don’t trade like traditional currencies at all, and one reason is the cap on the number of coins that any given currency will ever have in circulation.

Central banks like the Federal Reserve can and do print more money to manage inflation and support their countries’ economic policies. Bitcoin, on the other hand, will eventually have a maximum of 21 million coins in circulation, based on the algorithm that controls distribution.”

Many cryptocurrencies are like gold or oil. Thus, John Maher, an advisor and CIO at CCR Wealth Management, said: “It’s difficult to look at Bitcoin as a currency.”

Because the cryptocurrency market is tiny, which makes it volatile.

2. Is it winner-take-all situation?

Blockchain technology, which is Bitcoin, has many people believing that it would last for a long time but nobody is sure how many of the currencies that rely on blockchains will survive and thrive.

We simply don’t know the winners,” said Gabor Gurbacs, director of digital asset strategy at VanEck.

There are multitudes of ICOs that pop up every day. According to ICO Hunter, around 97% of them would fail, and it’s your job as an aspiring cryptocurrency investor to spot the remaining 3%.

A good strategy is to find companies that reflect the qualities of the top-rated ICOs. Not only should they have a reliable background in blockchain technology, they must also be built upon realistic ideas that truly bring value to their target market.

3. Cryptofunds will cost you

Fortune pointed out that institutional investors, and some individual investors, already have options “for playing the cryptocurrency market.”

Cryptocurrency research company Autonomous Next revealed that “through mid-October, 84 new crypto hedge funds that invest in the currencies have emerged, up from 11 in 2016.”

Many of the hedge funds charge hefty management and performance fees that impact returns.

What’s Next?

Those who are planning to invest in the cryptocurrency market should know things about the volatile digital currency.

What can say about this? Share your comments below.

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