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Predictions and Facts regarding Cryptocurrencies


Predictions analysis on the basis of 12 things we looked forward to in the cryptocurrency world in 2019

For token holders, 2018 has been a particularly significant year for polarization. The price of bitcoin soared by nearly 20,000 US dollars to a record high, and since then it has continued to fall, with its market value shrinking by more than 80%. In addition, other encrypted digital assets have also taken a downward route. Even the most sophisticated investors will inevitably have complex emotions and ideas in the face of the "dismal" market in 2018.
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On the other hand, blockchain technology is being further recognized by companies, governments and organizations worldwide, and many of them are aware of the development potential of the technology. In addition, many new service projects launched by blockchain companies have completed proof of concept, thereby increasing the public's use of the technology. Practitioners are developing and implementing disruptive new projects, so we have every reason to be optimistic and confident about the future of blockchain and encrypted digital currencies.

2019 had been very worth looking forward to. We expected the following 12 most exciting things to happen in 2019:

1. The rise of securities tokens (or the end of the ICO era)

For those who are concerned about the blockchain and crypto industries, ICOs are nothing new and not beyond the scope of understanding. They clearly realized that ICOs have certain problems. Because there is no corresponding measure to supervise, those fundraisers easily make a lot of money through ICO, but they have not fulfilled any promises made when the ICO product was originally issued.

In 2018, people illegally raised millions of dollars or even hundreds of millions of funds through ICOs, which to a certain extent cast a shadow on the development prospects of the forthcoming blockchain and crypto companies. You know, some companies actually have viable products or solutions.

Security token issuance is becoming the next major event in the field of blockchain and crypto assets, which has changed the way of financing and greatly reduced the chance of fraud incidents.

The issuance of securities tokens provides a safer way to invest and can ensure the legitimacy of investment activities. Industry giants such as Apple and Tesla have publicly expressed interest in the issuance of securities tokens. It is not difficult to imagine that their future is full of hope.

2. The use of crypto assets has increased significantly

Although after January 2018, most crypto assets, including BTC and ETH, have entered a downward trend, but the utilization rate of encrypted digital currencies has not been adversely affected by this.

The collapse of the crypto market has disappointed most people. However, it also happened to spark heated discussions on crypto assets. From enterprises, governments to ordinary people, almost everyone is talking about encrypted digital currencies.

In addition, governments that oppose cryptocurrencies have finally begun to reconsider their previous positions. The government's approval means that the use of encrypted digital currencies may increase, and even rescue people from the hyperinflation dilemma that the government cannot reverse.

3.Blockchain game fund TRON Arcade will affect the gaming industry

In November last year, Tron announced the establishment of a blockchain game fund and plans to invest $ 100 million in three years.

Game developers can realize their game dreams by obtaining the resources they need, and use blockchain technology to provide users with an unprecedented gaming experience.

The game industry has entered the next era-VR (virtual reality) and AR (augmented reality) will become their important components-blockchain games will also play an important role, and TRON Arcade will play a role in this period.

As AR and VR become an important part of the gaming experience, the gaming industry will start a new round of competition models. TRON Arcade will better connect the blockchain with the gaming world.

4. Governments around the world recognize cryptocurrency

 Governments around the world have started to recognize crypto assets as a legitimate medium of exchange and a way of storing value. In addition, they will change the mindset that encrypted digital currencies are mainly used by a small number of technicians and dark web users.

Earlier, some countries said that they could not determine the development prospects of encrypted digital currencies, while others categorically rejected such assets. However, this situation has changed in 2018, and global attitudes towards crypto assets have become optimistic. In this regard, the U.S. SEC has taken an important step by setting up an agency dedicated to monitoring and managing crypto assets.

It can be expected that more countries will re-examine crypto assets and establish corresponding institutions within their respective jurisdictions to monitor and regulate the crypto market. Although some people oppose the regulation of crypto assets, on the whole, most people prefer to embrace regulation.

5. Bitcoin futures, Ethereum upgrade, Cardano

Nasdaq has confirmed that it will launch bitcoin futures. This may further consolidate the market position of Bitcoin.

Ethereum will undergo two major upgrades in 2019, one of which will be the "Constantinople" upgrade in February, and the other will be carried out later this year. The Constantinople upgrade aims to increase the efficiency of the blockchain, reduce block rewards, and delay the Difficulty Bomb for 12 months. Subsequent upgrades will include the Casper protocol and sharding technology.

Cardano (ADA) is expected to complete the Shelley phase upgrade in the first quarter of 2019. Shelley is the next phase of Cardano's development and aims to make the project completely decentralized and autonomous. In addition, Cardano will also provide smart contracts suitable for corporate use, especially in terms of transaction speed.

6. Reduced mining energy consumption

 In addition to high energy consumption, mining activities also generate a lot of heat. Therefore, it is necessary to use a large-capacity fan to cool the mining equipment to keep it at a low temperature.

The drop in the price of bitcoin has led to a reduction in mining activity, which in turn has significantly reduced energy consumption. If this trend continues into 2019, energy consumption will decline significantly.

7. Booming crypto market

Investors will consider crypto lending for two main reasons. First, in the 2017 bull market, investors used the crypto assets in their hands as collateral to obtain cash. As a result, they do not need to sell their shares to receive funds directly.

The second is to sell short. Short sellers use their crypto assets as collateral, essentially assuming that the price of crypto assets will fall. When the short position ends, the bet investor will receive cash or an additional amount of crypto assets based on the settlement method of the contract. If prices rise over short positions, they will lose some of their collateral.

As credit cards supporting the purchase of encrypted digital currencies enter the market, we can see that the crypto loan market may continue to grow.

8. "Credit card" based on encrypted digital currency

 In recent years, although some countries have banned the trading of crypto assets, the public's acceptance of the asset is gradually increasing. Because the market is more volatile, most people are more inclined to invest or borrow their crypto assets than to sell them. This has led to the concept of a "credit card" based on crypto assets, which supports investors in holding and consuming crypto assets in fiat currencies.

9. Application of Blockchain in Trade Finance

It turns out that digital cross-border payments are much more difficult than people think. In particular, the transmission and verification of a large number of variables and information in cross-border transactions can lead to many complex situations. As a result, decentralized ledgers are seen as the most effective way in the future-to solve problems that have been called for decades around the trade finance industry.

However, despite the unprecedented increase in the number of VCs, tests, and pilots for digitizing trade finance in the past few years, can blockchain technology really penetrate the field in 2019?

The blockchain protocol provides end-to-end visibility and a highly transparent supply chain mechanism for each participant. Both parties to the transaction can track the latest situation of freight. With a digital ledger, files can be shared in seconds. In addition, no participant may modify or delete any record without the prior consent of the other participants. Blockchain improves visibility, efficiency, and security.

10. Institutional Entry into the Crypto Market

 Entering 2019, there are still many important questions to answer about the future of crypto investment: Will there be an overall framework covering a range of industry standards? What are the opportunities in the crypto market? Will regulation play a significant role in the crypto market? How will the market expand the application scenarios of encrypted digital currencies?

The investment environment is constantly changing and developing. Crypto assets have gone through the early stages-during this period, it was largely unknown to the general public and only known to novices, amateur investors, and those who call themselves "crypto masters." Today, it has become a high-functioning asset class, and large financial institutions and funds are trying to invest in it.

Despite recent developments, it will take a long time for crypto assets to be an asset class comparable to mainstream assets such as stocks and bonds. However, as large banks aggressively enter the field, their future is expected. For example, investment bank giant Goldman Sachs is preparing to provide Bitcoin futures trading services. In addition, the NYSE parent company will also be involved in the field of bitcoin futures.

11. Cryptocurrency exchanges must be registered

The decentralized asset class (crypto digital currency) was welcomed by investors during its nascent stage. To investors, the asset is not controlled by the government, or affected by inflation or a recession. However, the scams caused by the ICO and the more frequent hacking incidents in recent years have caused many Bitcoin advocates to begin to change from support to questioning. This has given rise to a consensus that in order to ensure the legitimacy of crypto assets, some form of regulation is necessary. So, how to regulate crypto assets?

The main problem with regulating crypto assets is one of its greatest strengths-decentralization. As a result, no agency can set and enforce standards that regulate the asset. The market may need a global framework approved by all countries, which is negotiated and established by experts in the crypto industry. In addition, authorities should provide a detailed overview of potential risks and returns so that all investors can understand the sector and how to invest in it.

Although the rules and regulations are bureaucratic and the framework may be designed to be more complicated, we still need to take this measure. At present, without disrupting the blockchain mechanism, international regulators are studying solutions. This will help investors distinguish between legitimate and fraudulent blockchain companies and crypto assets, and help the industry rebuild trust, so that the asset class maintains its independence, autonomy, and uniqueness.

12. Regulatory landscape is becoming clearer

 Regulation may be a concern for many blockchain companies and investors. Blockchain technology is known for distributed ledgers that are not subject to government intervention and supervision, and it was originally developed on the basis of this concept. However, it turns out that the introduction of basic regulatory regulations is critical to the next stage of the crypto industry's development.

Companies trying to raise funds illegally through ICOs have been unregulated for the past few years, leading many investors to stay away from the crypto market. The emerging skepticism not only hinders the development and progress of the industry, but also causes investors to begin to doubt the legality of blockchain companies. Therefore, by establishing relevant laws and regulations, it can not only help the crypto industry stimulate greater development potential, but also help to create a new era of disruption and innovation. Because the increasing trust of the industry can bring more funds and resources to it.

It is worth noting that some industry experts believe that unlicensed crypto asset exchanges are no different from unlicensed banks and are neither practical nor secure for investors. Therefore, we can be confident that as the regulatory landscape becomes increasingly clear, crypto exchanges that meet regulatory requirements will stand out, as institutional investors and the general public will find them more transparent and trustworthy.
Crypto Exchanges and Bitcoin Card

For the crypto industry, experts said that 2018 is a year of ups and downs, and 2019 is gradually becoming the "year of value" of the crypto industry. The only question is, can it surpass 2017 and become the most exciting “year of encryption” ever? In this year, the currency price will no longer be a hot topic, the landing scene will gradually expand, dApps will ignite hot spots in the industry, and so on. We expected that 2019 will become a more mature year for the crypto industry.



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