Cryptocurrencies development trends
The popularity of cryptocurrencies is over, and 2018 became a period of stability. It was hard for someone, but the others tool it as given. For the vast majority of the crypto community members it became obvious finally that the world and national financial regulators in the foreseeable future will not allow uncontrolled issue of cryptocurrencies and their circulation. Together with the crisis of trust, this did not allow digital money to become commonly used. However, this does not mean that cryptocurrencies have no opportunities and ways of further development.
Despite all the difficulties of recent months, cryptocurrencies have at least one undeniable advantage — they are based on blockchain technology, the prospects and applicability of which in practice is undoubtful. Moreover, distributed data storage has gradually become more and more widespread in the world.
At the same time, the role and place of cryptocurrencies in the modern economy are often greatly overestimated, first of all, by the members of the crypto-currency community, they sometimes can not realize the real situation. That’s a balance shall be found.
The cryptocurrency, despite all their disadvantages, obviously, have good prospects of using in payment systems and on financial markets, which, however, are in direct dependence on the position of such regulators as in the first place, China, the USA, Japan and the EU. Without a clear and precise legal status, it is naive to expect large institutional investors to come to the industry.
The appearance and spread of stablecoins played an important role in increasing of trust to cryptocurrencies. They will surely become one of the reliable financial instruments in the world of digital financial assets, and will move them even closer to the sphere of money funds.
The world’s major cryptocurrencies, due to their high capitalization, will continue to function as a means of saving. The share of the bitcoin on the cryptocurrency market is about 50 percent, which is more than enough to provide a stabilizing effect.
Another trend of development is to expand the location of the applicability of cryptocurrencies. Since it will be possible to discuss their full entry into the world economy only after they cease to be instruments only for enthusiasts. In addition, work in the sphere of transactions of blockchain cryptocurrencies speed and their cost reducing should continue tirelessly. Finally, it will also have a positive impact on the sphere of use of cryptocurrencies.
Another trend that is worth waiting for in 2019–2020 is a gradual reduction in the number of “live” cryptocurrencies in the market due to their mergers and acquisitions. This will happen while maintaining of the bitcoin’s dominant role, the rate of which will finally get rid of volatility, and reduction in the number of altcoins.
