Earning money with cryptocurrency has become something many people and companies strive for. Bitcoin has changed the way we view the world of money. The ups and downs this new currency experiences makes any related operation filled with adrenaline.
Can you make money using cryptocurrency? Does it make sense to mine Bitcoins? When is the next surge due? Is Bitcoin a bubble? The numerous questions are more complicated to list than the new cryptocurrencies, which have been springing up like mushrooms after the rain.
Accountants, finance managers, investors, schoolteachers, and taxi drivers are following the newest cryptocurrency trends, like their favorite TV series. We asked crypto and accounting experts from IBA Group to share a few such trends we are seeing and will see in 2018.
1. Bitcoin Is Losing Its Popularity
Bitcoin was born in 2009. It’s an obvious leader in the cryptocurrency industry. The year 2017 was big for Bitcoin. It was beating all the other cryptocurrencies by a significant margin. However, in 2018, the other currencies are becoming more and more competitive.
Bitcoin is slowly leaving the headlines. Today, we hear more and more about Ethereum, Litecoin, NEO, etc. Even though Bitcoin is still on top of its game, the competition is snapping on its heels. There aren’t too many chances of Bitcoin’s scalability improving dramatically this year. Perhaps by the end of 2018, we’ll see it take a plunge.
2. Cryptocurrency Value Is Growing
Even though the cryptocurrency market is highly volatile, it’s growing. When you look at the big picture, the growth is more or less stable, even though plunges are unavoidable. In the first half of 2018, the value of the cryptocurrency market was increasing, making it wise to invest.
More companies and individuals are investing in Bitcoin and other cryptocurrencies. However, it’s essential to understand that unless Bitcoin scales in the real world, it’s unlikely to continue its growth. Bitcoin is fighting with some serious governance issues.
All the ups and downs aren’t keeping people from making investments. The number of players on the cryptocurrency market is growing. They are becoming increasingly savvy, coming up with new ways to help the stability. Some forecasts say that in the next several years, cryptocurrency is bound to be used on many different platforms.
3. The Market Is Becoming More Stable
The cryptocurrency market survived many perturbations, including significant exchange hacks, a ban on cryptocurrency advertisements by Google and Facebook, government interventions, and much more.
All of that led to a plunge in the cryptocurrency market cap. While it was impressively high in January 2018 ($850 billion), in July 2018, it fell to $260 billion. Many economists were saying that the death of cryptocurrencies is near. However, they are still alive.
The death of cryptocurrencies may eventually come if stablecoins enter the game in full swing. Bitcoin is a highly volatile currency. All the other currencies are tied to Bitcoin, and experience swings every time it does. The stablecoin should have a fixed price, which is not affected by the other cryptocurrencies. It is backed by a fiat currency to guarantee its stability.
The most popular stablecoin today is Tether. Tether is backed by the dollar, making it rather stable. However, some theories suggest that Tether was artificially created to respond to the market conditions and manipulate the prices of cryptocurrencies.
4. More Decentralized Exchanges Are Appearing
The number of decentralized exchanges is expected to rise in the nearest future. Even though many experts believe that decentralized exchanges aren’t ready for mass approval just yet, their rise doesn’t seem to be that far off. Why will decentralized exchanges grow in numbers?
Cryptocurrencies have already become more mainstream than anyone could have ever imagined. The need for decentralized exchanges is evident and will be fulfilled.
There are too many significant players in the decentralized exchange business. Their investments and work are bound to create more exchanges. For example, Huobi already announced investing $100 million in building its own decentralized exchange. The increasing number of such exchanges will lead to improved mainstream interest and adoption.
While the world of cryptocurrencies is still very new, the latest trends show how quickly it’s developing. It’s unlikely that we’ll see the death of cryptocurrencies in the nearest future. Just the opposite, the industry is growing quicker than expected.