The cryptocurrency market has always been temperamental. And recently prices have taken a huge beating…
But what’s in store for 2019? Could the market recover and will prices soar back to all time highs?
Well in this guide, we’re going to look at the top cryptocurrency predictions 2019.
You’re going to discover some of the most exciting cryptocurrency trends for 2019, what’s in store for the industry and how this technology could impact the world in 2019.
Let’s dive in…
Scalability = how efficiently can a blockchain network cope with mass levels of transactions?
Cryptocurrency has never really been tested in terms of scalability…
But if the blockchain is truly the revolutionary technology that it claims to be, scalability needs to improve.
In terms of cryptocurrency predictions 2019, scalability is at the top of my list.
I think 2019 could be the first year where we finally see cryptocurrency being used for a masses of transactions.
Ethereum and Cardano are two of the most advanced DAPP platforms right now, and I expect them to lead the way in terms of scalability.
So what needs to be considered?
- Costs: Will transaction fees rise as the network becomes more in demand?
- Speed: How fast can transactions be processed on the blockchain when hundreds of thousands of people are using the network?
- Currency Fluctuations: The values per token need to remain relatively stable and consistent if it’s going to be a reliable network.
Why is scalability a big deal in 2019?
Well, if cryptocurrency is to gain mainstream popularity, then it needs to be user friendly.
Think of it like the internet:
Companies like Facebook and Google wouldn’t be worth anywhere near as much today if it was unreliable, slow or only a handful of people could use it.
And the same goes for cryptocurrency…
2. Mainstream Investments
Right now, the majority of people don’t know how to invest in cryptocurrency – or even how it works…
One of the biggest cryptocurrency predictions 2019 is that mainstream investment opportunities will grow.
This is good news for the typical ‘rookie investor’ who wants to invest in cryptocurrency, but doesn’t have the technical knowledge to mess around with complicated exchanges like Binance or Bittrex.
Coinbase is one of the more ‘beginner friendly’ exchanges that could take advantage of this crypto trend in 2019.
But how else could this change the crypto landscape?
Well, here’s a few ways cryptocurrency may become easier to invest in:
- Major investment banks will begin offering cryptocurrency funds
- ETF funds will become more common
- Coinbase will continue to attract ‘newbie investors’
- The technology – and exchanges – for trading cryptocurrency will become much more beginner friendly and easier to use
So why does this matter?
Well, investing in Bitcoin and other cryptocurrencies will be viewed as a legitimate investment opportunity.
If people can invest part of their pension or monthly wages in a crypto ETF, it’s going to bring in huge amounts of income into the industry.
But the effect of cryptocurrency becoming more legitimate doesn’t end there…
Making cryptocurrency more legitimate means that there’ll be more confidence in the market.
It’ll create a positive kickstart for the whole industry. And that means prices could rise substantially, as investor confidence grows.
So if an institutional ETF is launched, it’s a huge step in the right direction for the market as a whole.
3. Stamping Out The Scams
Governments around the world are cutting down on cryptocurrency related scams.
Whilst 2017 and 2018 was bombarded with cryptocurrency scams, crypto ‘get rich schemes’ are getting stamped out.
For example, look at the infamous scam like OneCoin.
OneCoin has faced legal fines and several arrest were made throughout China. Over 200 million dollars were recovered. It’s a sign that the awareness of cryptocurrency scams is increasing.
So what else do I expect?
1. Investors will be more careful about which coins they invest in:
A lot of investors and amateur traders were burned during the crypto crash of 2017/2018.
People were investing in projects they had no idea about, simply because there was a lot of hype around them.
But since the 80% drops in value across the market, investors are going to be a lot more careful and savvy to scams.
2. Government Regulations:
Governments realise the potential – but also the pitfalls – that cryptocurrency investments can have.
Governments across the US, India, China, Korea are all increasing regulations around cryptocurrency.
So what sort of regulations are they planning?
- Stricter controls to ensure cryptocurrency exchanges operate more legitimately
- Some ICOs aren’t available for residents from certain countries
- Tighter rules on accounting and asset valuations from cryptocurrency firms
3. Bigger Gaps Between The Competition
During every new wave of revolutionary technology, there’s a lot of competition.
Just like the dotcom boom, there are thousands of new cryptocurrencies rising up out of nowhere.
But most of them won’t make it.
In fact, most of them don’t have the fundamentals, backing or the technology to remain competitive.
So going back to the dotcom boom example, whilst there were thousands of businesses, Amazon, Apple and Microsoft were the top winners.
I can see the same happening with cryptocurrency.
But the rest remains to be seen…
So I think in 2019, the gap in value and popularity between the top 10 cryptocurrencies and the rest of the market will grow profoundly.
And in time, it’ll become harder for smaller blockchain companies to compete unless they truly have a competitive edge on the market.
4. Real World Examples
In 2019, I predict that there will be plenty more real world examples of blockchain technology.
So what do I mean by that?
Right now, the cryptocurrency industry has attraction billions of dollars in investments.
But it’s still not had much of an impact on the offline world.
And for cryptocurrency and the blockchain industry, that’s the next step.
I’d expect to see DApps become more relevant and useful to society, making an impact on the way we live our daily lives.
It’ll take time – and there’s going to be some teething problems – but just like the internet, or mobile phone technology, cryptocurrency has the potential to become ubiquitous in our everyday lives.
From purchasing luxury goods with VEN to sending international payments with OmiseGo, 2019 could be the year that we finally see cryptocurrency hit the mainstream.
5. Market Recovery
2018 was a hard year for cryptocurrency investors.
In fact, after the amount of government regulations, legislative changes, scandals and scams that came out of the cryptocurrency industry, hundreds of millions of dollars were wiped off the market – sometimes hours at a time.
So do I expect cryptocurrency prices to hit the all time highs of December 2017?
The honest answer is no.
But I do expect the market to recover.
And prices will steadily increase, as market confidence grows.
That’s going to take time – and we might not see the likes of Bitcoin or Ethereum hit ATHs for a few years yet, but I believe that it’s just a matter of waiting.
6. Government Partnerships
Cryptocurrency and the blockchain have the power to change the world.
But that will only happen when the technology is reliable, consistent, and accepted not just by society but also by Governments too.
In fact, establishing Government partnerships may just be the most important stepping stones to achieving cryptocurrency growth.
And I think that if Governments and blockchain technologies can work together, then the future of crypto is very bright indeed.
Crypto-Government alliances could be a win-win partnership.
Well, first let’s look at the benefits for Governments:
- Tax: If Governments can establish a way to monitor income gains via cryptocurrency, then they’ll tap into more tax. Partnering with cryptocurrencies and establishing a way to calculate taxable gains from cryptocurrency could mean hundreds of millions of dollars are recovered in GDP.
- Opportunities: If a Government truly understands the value of the blockchain and it’s potential impact, then they’ll see the opportunities of crypto too. It’s important that cryptocurrency is seen as a innovative technology, rather than a threat to a country’s economics.
- Economic Growth: Adoption of an industry can make or break a country’s economy – and the early Government adopters of the blockchain could stand to thrive. For example, look at the way Singapore’s banking industry or the US’ Silicon Valley has brought in billions of dollars in investments into the country.
What about the benefits of Government partnerships for cryptocurrencies?
- The more cryptocurrencies can partner with local Governments, the easier it’s going to be for them to comply with legislative and regulatory requirements
- Government partnerships creates a level of trust and credibility to a cryptocurrency – just look at the way NEO has partnered with China or POWR has partnered with Australia’s Governments
- Governments typically have huge networks and alliances with some of the country’s biggest investors. That’s an opportunity for blockchain projects to tap into – the more they grow their network, the more money they’ll bring in
Now obviously, the vision of cryptocurrency is to remain decentralized and peer to peer.
But that doesn’t mean they can’t partner with a Government – in terms of complying with legislation, enhancing economic growth and tapping into huge network opportunities.
7. Use Cases
When the internet was first released, not many people foresaw it’s potential.
And I think it’d be fair to say the same about cryptocurrency too.
Some of the biggest companies in the world right now wouldn’t be the powerhouses they now are without the internet:
Just look at giants like Amazon, Facebook, Apple and Uber who all owe a substantial part of their revenues to the internet.
Now let’s look 10 years ahead with cryptocurrency:
Don’t you think there’s thousands of companies just waiting to be established?
…And entrepreneurial blockchain ideas that could literally change the world?
As cryptocurrency technology continues to adapt and progress in 2019, we’re going to see some new use cases the technology too.
And some of them we may have never even considered before.
And that’s an exciting time for the world.
As the blockchain becomes more innovative, so does its power to influence and change the world we live in.
Social media, mobile phones and email have all changed the world we live in – and that’s purely down to the technology.
It could be the same with the blockchain, beginning in 2019.
I believe we’ll discover new use cases for the blockchain that we haven’t even thought about yet.
8. More Decentralized Exchanges
There’s a lot of controversy around centralized exchanges.
And there’s no wonder why because it causes it can lead to market manipulation – amongst many other problems.
But now one of the world’s largest cryptocurrency exchanges, Binance, is planning to launch it’s decentralized exchange in 2019 – called DEX.
Why is that a big deal?
Well, it’s a sign that the leading exchanges in the world believe that decentralization of exchanges is the future.
So why do we need more decentralized exchanges in 2019?
Satoshi’s original vision for Bitcoin was complete decentralization – meaning cutting out the middlemen from financial transactions (like a bank for example).
But when you have a centralized exchange, you’re creating another third party – which goes against the philosophy of cryptocurrency.
Centralized cryptocurrency exchanges create a single point of failure.
We’ve seen this time and time again, where a centralized exchange is hacked and thousands of people lose their money.
With a decentralized exchange, tokens are stored in multiple points across the blockchain, reducing the risk of a hack.
Sure, a few accounts might get hacked – but not the whole stash.
A lot of new cryptocurrency projects complain that they can’t be listed on an exchange, because of the fees and strict regulations involved.
Decentralized exchanges may be more open to listing new cryptocurrencies, which opens up the market to investments and encourages more innovation.
This trend is still in the very early stages, but as the industry grows, so will the technology and usability of these exchanges.
…So expect big things when Binance launches DEX!
9. Higher Trading Volumes
In 2019, I expect cryptocurrency trading volumes to be higher than ever.
Well leading on from my previous cryptocurrency predictions 2019:
- Market confidence will be higher
- More exchanges will be popping up – decentralized and centralized – making cryptocurrency more competitive, secure and easier to use for new traders
- New technologies and use cases will be developed for the blockchain, encouraging more investments into the market
…Plus much, much more!