Five Reasons could be the best year for Cryptocurrencies

First of all, as 2017 showed us, the amount of uncertainty in the crypto market is such that no one could predict with surety whether its value would nosedive or rise sky high in the coming months. That said, taking a huge leap of faith, I believe this could be the best year for cryptocurrencies.

And here are my five cents for that prediction …

1. More countries coming in

While countries like China and South Korea are moving away from Crypto – though they could still come back, there are nations like Venezuela who are turning towards it. So much so that, at the time of this writing, Venezuela has launched ‘’Petro’’, its cryptocurrency. Therefore, with more countries coming in, cryptocurrencies could have a dream year ahead of themselves.

2. Regulation resulting in investor confidence

Undoubtedly, it was regulation in countries like China and South Korea – and by internet giants like Facebook and Google – which resulted in the fall of Bitcoin last year. Still, as these regulations take time, they would introduce one thing which was lacking in the crypto trade: certainty.

Legitimate traders would know that their accounts would no longer be hacked by the FBI and this certainty would lure more people towards the crypto trade.

3. More companies using them

As this article tells us, more and more retail companies are turning to Bitcoin for retail purchases. More importantly, and this is HUGE, more than 260,000 retail and food establishments are accepting Bitcoin as a method of payment in Japan. So, in addition to developing countries like Venezuela, even the developed ones are turning to Crypto.

4. Decreasing share of Bitcoin in the market

Currently, Bitcoin amounts for 40% of all the cryptocurrencies that are in circulation in the market. Ask crypto traders, and they would tell that it is a bad omen for crypto in general; for whatever happens to Bitcoin affects the whole market. Hence, what the crypto market needs for its stability is a decrease in the share of Bitcoin.

And guess what, that’s exactly what’s happening right now. New chain networks like Lightning Network, which allow carrying transactions off the blockchain – hence decreasing transaction cost on one end and increasing transaction speed on the other – are gaining traction.

Put simply, thanks to these second-layer networks, the crypto market would get rid of the two biggest problems Bitcoin faces – lack of liquidity and scalability. This, in my opinion, could be a major reason for Cryptocurrency surge this year.

5. Increase in the number of legitimate ICOs

Related to the regulation point that I mentioned above, there would be more legitimate initial coin offerings this year. This, in turn, would lead to the demand of Ethereum, as ICOs require a large amount of ether to get up and running.

In other words, with the increase in ICOs, the market demand for ether would increase, due to which its market cap is also expected to grow. It means that the price of this cryptocurrency would increase, hence positively affecting the whole network.

Apart from the abovementioned five reasons, there is another, a sixth one. And while we don’t know what it is, yet, what I do know is that it has the potential to change the crypto market.
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