Cryptocurrency: A Look Back at 2017

The latest cryptocurrency crash on the market has lead people to question what will happen next in 2018 in the crypto- market.

Blockchain: Reaching a new level

Blockchain technology has spread globally, and is considered a viable mean through which the existing financial infrastructure will evolve. Corporations and governments are starting to adopt this technology, gaining a new understanding of the direction blockchain development and its future potential.

The media’s take on cryptocurrencies shifted from saying it’s a bubble waiting to happen to giving advice on how to purchase them. Such change in position is due to various announcements of bans or motions to accept digital assets. Banks are slowly starting to implement such motion, with Goldman Sachs planning to set up a trading desk just for cryptocurrencies.

Accessibility of crypto- products

In December 2017, CME and Cboe, two of the world’s largest futures exchanges, launched Bitcoin futures. Futures allowed corporate companies from around the world to access and invest in cryptocurrencies. Also in December 2017, Bitcoin ETFs was filed to be listed by the New York Stock Exchange. This would enable traders to bet on cryptocurrency through simpler means.

ICOs, here to stay

Initial Coin Offering is a way of raising capital for technology companies that are in their early stages of development. ICOs are an efficient alternative to traditional venture capital money due to it being a faster and less costly movement.

This method gained popularity in 2017, and its velocity increased exponentially towards the end of the year, in the number of ICOs started and raised funds.

Largest ICO raises of last year were:

Status Network: $275,814,878

Filecoin: $257,000,000

EOS: $256,247,089

Governments adopting cryptocurrencies

Governments have been slowly warming up to the idea of using cryptocurrencies, probably after seeing the great potential and advantages blockchain technology can offer. Venezuela announced at the end of the year that it was planning on issuing its own cryptocurrency, the Petro. This will help the country gain independence from the international financial system.

This use of cryptocurrency will spread, as more countries with problematic financial systems and down economies are looking for a way to improve their financial infrastructure, and blockchain technology seems to be their solution.

Cryptocurrency in the year of 2018

2018 looks promising, as many large scale institutions will invest in cryptocurrencies. A series of new products like Ethereum futures and bitcoin ETF will be launched.

These products will facilitate transactions that involve large sums that happen in the system. The foundation for high-volume transactions are being built at a fast rate with a demand that has yet to be seen before.

Cryptocurrencies will be adopted by more people

The number of people that will own cryptocurrency is predicted to triple in this year. This adoption will be aided by media outlets that are spreading the word on how convenient and easy it is for one to have and use a digital asset.

Corporates will have their own crypto tokens

Recently, large corporates such as Kodak and Telegram have issued their own cryptocurrencies. This trend will continue over the coming year, with corporates making their own coins as a way to update their technology and economics.

Bitcoin and Ethereum will have new blockchain-based rivals

Since the release of blockchain technology in 2009, there have appeared many ambitious new projects, such as Hasgraph, that want to better the underlying blockchain technology. The current year will see many academic groups around the world launching their own blockchains in an attempt to improve the structure of the blockchain environment.

Over the past 10 years, cryptocurrency has gone from an asset held exclusively by those that are tech savvy to an asset that trades around the world. More than 170 cryptocurrency funds have been created just for investment in cryptocurrencies and early stage blockchain technology companies.

The year of 2018 will see many evolutionary moments for this technology that will improve our way of storing digital value and set the foundation for the powerful economies of the future.