The cryptocurrency industry has been wobbling throughout 2018. Bitcoin (BTC) is the best example to look to understand how the situation has been. At the start of 2018, bitcoin was about $13,500 having gotten to a high of $19,783.06 by the end of 2017. Towards the end of 2018, Bitcoin was trading at $3,400, which was about a quarter of its value a year before. Other cryptocurrencies have been experiencing the same challenges with Ethereum (ETH) going to a low of $91 by December 2018 having reached $1300 in the past.
Today, Bitcoin investment is on the rise, on a number of fronts and not in value only. Investors, institutions and corporate entities are gearing up to plug into the cryptocurrency space through heavy cash inflow and integrations with the blockchain technology. However, there still is some fight to do in the crypto industry in 2019. It is a question of how the cryptocurrency space will adapt and ensure survival.
Interest from Institutional Investors
Despite the evident decline in trade figures among individual investors on many fronts, institutions are getting into the game. Investors from an institutional setup are making bigger trading volumes than what individual investors have done in the past. This means that, even with few trading partners doing transactions in the cryptocurrency space, the industry is still in a position to remain in operation.
Ideally, there are a number of significant developments believed to occur in 2019 that could have a significant impact on the participation of institutions in the cryptocurrency market. If crypto gets floated in exchanges, its reputation and value are most likely going to receive a major boost.
Bitcoin ETF Uncertainties
Crypto enthusiasts have for many years continued to pin for digital currency ETF accessible to typical investors in the U.S. These have either been rejected by the U.S. Securities and Exchange Commission (SEC) or bitcoin ETF applications delayed by the same body waiting for decisions to be made in the future. VanEck is one of the common funds whose final approval decision has been taken to February 2019.
A number of analysts believe that mainstream ETF approval may provide a huge blow to the cryptocurrency industry, allowing entry to investors willing to take part in the industry investments without a number of risks associated with trading the tokens directly. At the moment, VanEcK’s future remains uncertain and we can only wait in the hope that the approval will be made.
Progress made by Stablecoins
Stablecoins are digital tokens attached to a fiat currency acting as hedging mechanisms provided against risks of a potential decline of the basic cryptocurrency collateral prices. These appear to be the only hope of the cryptocurrency industry in 2019. There is an anticipated growth of Stablecoins in the coming year because of the long-term instability of tokens that are not centralized.
The leading Stablecoin, the tether is currently facing stiff competition. Tether (USDT), has reached the mainstream early enough has gone through highly publicized growing challenges as the sub-industry continued to develop. At the moment, the other Stablecoins are getting into space with the aim of dethroning it.
What’s certain about the Cryptocurrency Industry?
Currently, it may not be easy to tell which cryptocurrencies will experience a dramatic price increase in 2019. Even with all these uncertainties, the confidence built around cryptocurrencies in the past is not likely to go away that soon. The underlying Blockchain technology has found applications outside the cryptocurrency industry. There will be efforts by regulators to see what ways they can facilitate control over the digital tokens.
The cryptocurrency industry is unlikely to go down despite the challenges realized on almost all fronts including unstable value among the digital currencies. The technology behind cryptocurrency, Blockchain is increasing in its use in many other ways with institutions coming on board. It may not be possible to say which currencies will gain value but at least, it is not all over for the cryptocurrency industry.