Let’s face it 2018 was not the year for crypto. However, the reality of the facts is that the market doesn’t care about what we feel. Crypto is one of a kind and that’s why we love it. Throughout 2018, the price of cryptocurrencies fell dramatically against the USD. This was shortly after prices reached their all-time-highs in the December 2017 to January 2018.
The fall in prices led to a collapse of the ICO market that flooded the blockchain space.
Many projects that were launched during the hype met their ends in no time. Scam ICOs also used the opportunity to scam investors. Statistics have shown that retail investors lost the most during this bearish market. This is why the major sell-off was no surprise. Massive lost can have serious psychological effects, these small-scale investors are less likely to return to the market any time soon.
While the media called crypto dead multiple times. The blockchain space was making progress silently and it has a bright outlook coming into 2019.
Decentralized Exchanges will come into the game with better scaling solutions.
The entire point of crypto and blockchain is decentralization. While there are some centralized cryptocurrencies, the vast majority of them claims to be decentralized. As such, trading decentralized coins in centralized exchanges seems hypocritical. Experts predict that a lot of issues such as the speed of transactions may be solved and fixed in 2019, which will allow decentralized exchanges to finally start seeing some real volume going their way.
They are already much safer than even the safest centralized exchange, and they have numerous other benefits. With a bit more work, full decentralization will finally be obtained in the crypto market. Starting with the Binance DEX TBA 2019
Tokenized securities are coming fast.
Every stock, bond, currency, and commodity will be tokenized.
A digital exchange opening next week will enable investors to trade in companies including Apple Inc., Facebook Inc., and Tesla Inc. outside of the U.S. even when the stock markets are closed.
DX. Exchange, which has offices in Estonia and Israel, will offer digital tokens based on the share of 10 Nasdaq-listed companies with plans to expand to the New York Stock Exchange as well as in Tokyo and Hong Kong. Each digital security is backed by one regular share and holders will be entitled to the same cash dividends, even though the companies themselves aren’t involved.
The exchange’s virtual stock offering will provide a test of investor appetite for products that seek to improve upon mainstream financial markets by using technology from the world of cryptocurrencies. DX will offer digital stocks, or tokens, based on actual shares bought and held by partner MPS MarketPlace Securities Ltd. The tokens will be based on the Ethereum network, with the amount corresponding to demand on the DX exchange.
The successful launch of tokenized stocks will be a major win for investors.
It increases access to public equities for individuals globally by removing many of the barriers of setting up US-based bank and brokerage accounts, while also allowing stocks to trade 24/7/365. Additionally, investors will be allowed to purchase fractional shares of each stock, which was previously not possible.
2019 is expected to be the year when this type of trading will be more accepted and fully adopted, which is something that many are looking forward to.
Stability and Value will be validated in 2019.
cryptocurrencies have been treated with the lack of trust or appreciation due to their nature and goal. However, they also lack any kind of comprehensive valuation framework, which has made a serious disconnect between the prices of digital currencies and their fundamentals. As such, it is not surprising that old-school investors and masters of finance industry did not trust them. They have simply seen too many scam attempts throughout their careers to just jump on an opportunity like this, no matter how sincere it looks at first.
However, this may change in 2019, as experts believe that introducing valuation models will bring some sanity to the market. There are already several ideas on how to do this, one such idea claiming that the net value is proportional to the square of the number of all connected nodes. Models such as this can increase the sophistication of the crypto market and spark additional interest in financial minds that are searching for proof that crypto is the real thing. While a lot of work is still required in order for everything to fall into place, 2019 is expected to be the year when it happens.
DAPPs are coming in HOT!
Decentralized applications (dApps) were invented around the same time as smart contracts, and they came as quite an interesting concept. While decentralization was originally only intended to include money, soon enough, decentralized everything became a real thing.
It’s a well-known fact that most of dApps are built and ran on Ethereum blockchain.
However, lately more and more dApps are having their code written on EOS, POA, TRON, and Steem blockchains. All 4 independent constituents have unique qualities which favor different types of organizations and businesses. For example, EOS is a perfect medium for building online casinos as its blockchain allows more than half a million transactions to be processed in a minute. Steem, on the other hand, enables people to build dApps that will financially reward best content/comments created by users through the upvoting system which uses SMT protocol.
Now, experts believe that 2019 will be the year when dApps will finally grow big enough for the whole world to learn about them and make them popular.
Institutional and governmental inflow will be more pronounced.
It is just not financial institutions that are entering cryptocurrencies, government institution is also gearing up. However, the changes there is mostly revolving around implementation and use of blockchain technologies and the laws surrounding them.
One example is the Russian government is drafting their laws surrounding cryptocurrencies which also includes a decision to not tax cryptocurrencies. Another example is China who has allowed blockchain transactions to be used as proof in a court of law.
In addition to government institutions, universities like Harvard, Yale and Stanford have all invested in cryptocurrency funds. An undisclosed source has revealed that endowments of the respective universities have invested tens of millions of USD into at least one crypto fund.
Bakkt stated earlier that they would launch the platform in January 2019. Most recent news states that they have completed their first funding round. Intercontinental Exchange (ICE) created the institutional investor-focused cryptocurrency platform. They have officially raised $182.5 million from 12 partners and investors, according to the news.
The partners and investors in the first round include Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures.
In December, Bakkt made huge progress, and are finalizing needed regulation.
They also announced an update regarding the timeline. Following consultation with the Commodity Futures Trading Commission, ICE Futures U.S., Inc. expects to provide an updated launch timeline in early 2019. An update regarding trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract. The launch had previously been set for January 24, 2019, but will be amended according to the CFTC’s process and timeline.
No one knows exactly what the future holds, but there are many teams working hard to create the future they envision. This competition among teams, networks, and jurisdictions are healthy it should lead to a faster pace of innovation. The sentiment is horribly displayed in the charts but internally the progress is moving forward.