Whether you have stumbled into this article because you are interested in investing in cryptocurrency or you want to see what the hype is all about. Either way, you are in the right place! In this article, we will discuss what investing in cryptocurrency ultimately means, and some good reasons to be optimistic about the industry in 2019.
Investing in cryptocurrency
Virtual currencies or cryptocurrencies such as Bitcoin and Ethereum are for sure the hottest investment product at the moment. These exchangeable and immutable cryptographic tokens have the potential to become a stable and non-manipulatable currency worldwide.
Believers of the cryptocurrency evolution see a bright future for the industry. A future where Bitcoin or other cryptocurrencies will replace the Euro, Dollar and so on. It will create the first free and solid world currency.
Owning Bitcoin means having a share in this venture. If it is ever to happen that Bitcoin becomes the international trades dominant currency or it replaces monetary reserves of central banks. Purchasing and holding cryptocurrencies is a bet on the victory of this silent revolution of money. See it as the security of a huge ecosystem.
Following are three reasons to be hopeful and positive about investing in cryptocurrency 2019
1. Natural Market Cycles
Traditionally market cycles are like roller coaster rides, and the volatility of the cryptocurrency market only intensifies that idea. Nevertheless, if you accept that you are on a roller coaster ride, it is easier to forget the ups and downs for a moment and perhaps even enjoy the ride.
It’s not the best equivalence, but there are genuine reasons to be optimistic about the technology that powers cryptocurrencies in addition to their deteriorating prices. The falling prices and strengthened fundamentals combo has been a dream for investors looking to increase their cryptocurrency holdings.
Essentially putting aside, the bullish news, it is like financial markets to move through bull/bear cycles, and it is the crowd’s emotions that fuel its movement. If this premise occurs in cryptocurrency, we will possibly see another bull run solely based on emotion.
Moreover, the next swing upward is being reinforced by technological advancements right now that directly apply to global economics. Advancements that have been increasingly getting more traction despite the price fluctuations.
Bitcoin Halvening 2020
Besides the excellent timing of the natural market cycle together with improved technology and positive institutional responses; the next bitcoin halvening is planned to happen in May 2020. The mining rewards will split into two.
Halvening mining rewards prevent hyperinflation because the amount of bitcoin entering the market is limited. Regarding price, the first halvenings in 2012 and 2016 resulted in new all-time highs. With this logic, the next upcoming parabolic pump will only happen end of 2020 at best.
Nevertheless, considering that halvening is likely to be incorporated into the bitcoin price earlier, it is difficult to say for sure. However, it is worth contemplating now.
2. Cryptocurrency Developments are another good reason to start investing in cryptocurrency in 2019
Some of the top cryptocurrencies have significant updates planned for 2019. There are a lot of impressive, innovative projects in progress; here are some examples to look forward to in 2019;
The Lightning Network development continues, and it seems that it is the main focus right now.
Seeing as the Bitcoin blockchain is only able to handle seven transactions per the second maximum; the network is slower than established payment gateways such as Visa. Visa can handle an estimate of 24,000 transactions every second when maxed out.
The complete implementation of lightning Network should happen during 2019. The trials have already been ongoing since 2018.
Most developments scheduled for Ethereum in 2019 target the improvement of the platform’s scalability.
The Constantinople update scheduled for the final half of 2018 but postponed to January 2019. The update aims to provide better processing times for developers, scaling solutions, improvements to Ethereum’s economics, and so on.
Another significant Ethereum update, which does not yet have an official release date; is an upgrade called Serenity, and it is a huge undertaking.
Blockchain Job Market
Behind the rumors, falling prices and FUD, the blockchain job market is at an all-time high concerning developmental manpower. The developments that are underway will almost certainly result in functional improvements in blockchain technology. Therefore, there will be more support in the rising institutional demand for digital assets.
Cryptocurrency jobs are escalating, while the price does what it needs to.
3. Positive Institutional Responses – investing in cryptocurrency
Cryptocurrency enthusiasts are making a huge claim when they say cryptocurrency will replace fiat currency. And when they elaborate that the replacement is by “ that internet money used to purchase drugs and launder money” they get a side eye.
As phenomenal as it would’ve been to witness a global economic revolution behind the Q4 2017 bull run. Independence from centralized banks will be very difficult to achieve. Moreover, organizations such as the Federal Reserve will be against it all the way. Nevertheless, if the “powers that be” can take advantage of the blockchain technology the outcome will be different.
Final thoughts on investing in cryptocurrency
Ok, So perhaps the cryptocurrency revolution it not an overnight job. Rather it is a process that will take decades to form in incremental steps. If the creation and small-scale use of cryptocurrencies was step number one; The response of government agencies we have seen lately might be a second step in the right direction.
What I am sure of is that those who were once skeptical of Bitcoin and the technology that powers it is gradually starting to understand it, and more people are investing in cryptocurrency.
Hoping that these points have been helpful if you are interested in getting started or doing some research on beginner strategies concerning investing in cryptocurrency click here. Feel free to go through related articles that will guide you through your journey.