What can we expect? A very interesting year is awaiting us and if the last few months are a demonstration of what’s coming, we are looking forward to:
- Lots of forks – Forks are one of the best qualities of cryptocurrencies!
- High volatility – More and more people are investing in cryptocurrencies because of its huge popularity, so the number of weak-hands is increasing. Great players will certainly use it for their benefit.
- Even more scams, but yet successful cryptocurrencies – There are lots of new cryptos coming next year. But lots of them is missing a real purpose. Good marketing will be more important than innovation in 2018.
- Continuing Exponential Growth – We’re still just starting out. Coinmarketcap is currently about $700 Billion. Later on, it could be a couple of Trillion Dollars!
- Arrival of new technologies – Lightning Network, Metropolis update, Raiden Network and so on. Public Blockchain Cryptocurrencies working on the proof-of-work consensus algorithm will finally get cheap and fast transactions.
- Regulations – some countries will be limiting cryptos and some will be more open minded. As the Korean Bithumb spokesman said, “Properly set up regulations will strengthen the digital cryptocurrency market and we welcome them.”
- And many more …
“Bubble talk” takes a new dimension
Bitcoin bubble rumors are so oftenly repeated that it might become true in 2018. Huge hype kicks the price of the coins sharply upwards and growth will become unsustainable.
There are less cryptos with real value
If something is meaningless and does not bring any benefit, it will sooner or later disappear from the surface of the earth. For the past nine years, Bitcoin has proven that it has some value.
However, the quality is missing in the crypto market. At the moment, it is full of opportunistic projects that are going to create great hype. But they often lack a quality team of developers with years of experience and realistic goals.
There will be a large number of coins with a capitalization of more than one billion dollars in 2018.
One of the most important moments in 2018 will be the launch of Lightning Network (LN) over the Bitcoin blockchain. It’s already in the testing mode, and developers are trying to optimize the code and remove the bugs.
Putting LN into production will result in the termination of high charges for Bitcoin transfers and will shorten the time needed to confirm the transaction to a seconds. However, this technology will also bring problems with network centralization.
At the same time, it slows down the growth of altcoins, of which the only use is to make payments. They are now prospering because Bitcoin is almost unusable.
Regulations and taxes
Regulators are getting interested in the cryptomarket, and that could be a problem. Badly set rules could slow down further development and destroy many innovative projects.
It’s also possible that you will have to pay taxes from your earnings. The governments will also want to have a cut from the cake.
Year 2018 will be great !!!
If you are scared of what you just read, you don’t have to worry about anything. 2018 will really be a year of cryptocurrencies. It will be everywhere and that’s good. Remember that every technology revolution will create a bubble in the financial market. The world just has a lot of opportunists who want a quick money.