BitPR Weekly Crypto Highlights: New Year Hope

Week 1 January 2019
5 Jan 2019
Happy New Year!

Everyone seems to have a crypto prediction for 2019. Of course, most of these will turn out to be wrong, just like in 2018. While we caution against believing predictions of ridiculous increases in Bitcoin prices, we should still consider how the industry as a whole could evolve in 2019.

For instance, we may start seeing more institutional investors. Corrections or Bear markets in global equities could divert some funds into crypto. At the same time, the crypto markets could consolidate as more post-ICO projects fail and/or are forced by regulators to return money to investors. Security tokens will likely become the preferred token raise method since they can be regulatory compliant and protect investors.

The two elephants in the room are scalability and adoption. Blockchains must be able to process a much higher volume of transactions and do it a lot faster. This is one of the main obstacles to mainstream adoption for businesses and end-users today. Progress will continue to be made in 2019 but a proper solution may take more time.

However, we are on the right track.

Nine Crypto Trend Predictions for 2019

Blockchain and cryptocurrencies are steadily evolving and adoption challenges remain. On one hand, the current regulatory environment isn’t supportive enough and might has contributed to the bear market. On the other, those who cashed early from cryptocurrencies just so they could profit from its 2017 bull run has also increased selling pressure.

What have we learned, and what could the future hold?

Takeaways From 2018 Trends: Predictions and Reality

  1. Dapp Platforms – the mainnet launch of many blockchain platforms such as Tron and EOS offered users more options aside from Ethereum. The prediction was that ETH, NEO, and EOS would be the most active dapp platforms in 2018. It wasn’t accurate enough, however. As it turns out, many dapps today migrated from Ethereum to Tron.
  2. ICO Craze – the predicted rise of ICOs on many platforms may have already happened, but the interest for ICOs have since cooled off due to regulatory issues with the SEC and CFTC.
  3. Scalability debate – because of the on-going bear market, there is a rising skepticism on whether crypto projects are really capable of performing their claims. Amidst all that, many projects were still brave enough to announce their plans of scaling up.
  4. Ease of purchasing digital assets – purchasing digital assets have now become easier, as predicted, through platforms such as Cashapp and Coinbase.

9 Cryptocurrency Trend Predictions for 2019

  1. Crypto Margin Trading Trend Will Subside – Many are still expected to keep on trading cryptos. But having learned from the wild fluctuations of the market this 2018, crypto-to-crypto exchanges may be less likely to rise for the most part of 2019.
  2. Price Volatility Will Be Low – In 2018, we saw that the price volatility in the crypto market is becoming more subtle, with less price changes over short periods of time. This trend might continue until 2019 as an expected consequence of the markets self-correction. Eventually, the market may be even more stable if the trend continues.
  3. More Institutional Investors Will Come in Slowly Throughout the Year – Institutional investors have already picked up on the blockchain trend. And because many of us have been inspired by the blockchain developments from the previous year, many of investors are expected to show their interest in joining the crypto market this year.
  4. News and Events Will Stop Being Big Market Movers – The trend where the market usually responds to news or events may be drastically reduced in 2019 as the market widens. Add to that the fact that many speculative traders may have already been weeded out by unsuccessful transactions in the market recently.
  5. There Will Be No Massive Bull Run – The bear market is still expected to continue until the price trend goes up without falling back to where it was.
  6. More Projects Will Throw in the Towel – Many projects have been forced to return the money of their investors. Lack of funds and issues on regulatory compliance remain the most challenging concerns of every crypto project to date.
  7. Scalability Will Still Be an Issue – The wide-scale adoption of crypto projects are still dampened by issues on scalability.
  8. Serious Efforts Towards a State Cryptocurrency – Government interest in cryptocurrency is growing, and it’s not impossible to see many of them launch their own state cryptos in the coming year.
  9. The Rise of Security Tokens – A rise in security tokens more favorable to crypto investors are expected as soon as the cloud on the regulatory framework clears for the security tokens.

Could Cryptocurrencies Outperform All Other Assets in 2019?

Many are starting to believe that cryptocurrencies will become the best performing asset class in 2019. Bloomberg Economic declared October 2018 that the world’s largest central banks are already collectively declining bond holdings. The fear of a global recession is also seriously affecting how investors decide where to put their cash in.

The current economic climate for the asset market may be good news for cryptocurrencies, many believe. They say that the crypto market may lead the renewed charge for the asset market as it appears to be able to reverse its plummeting market since 2018. Which might already be happening if you look at over $30 billion re-entering the crypto market just in the past few weeks.

GMO Stops Selling Mining Machines After Crypto Market Downturn

GMO Internet announced that they would stop making and selling crypto miners amidst the on-going bear market. This move is in response to the “extraordinary loss” the firm has incurred from the spiral downturn of the crypto market, amounting to a total of 35.5 billion yen (or $321.6 million).

The firm will still continue running its in-house mining operations while reviewing its revenue structure. They are also planning to relocate their mining centers to new regions for maximum benefit over costs. However, there are still no further details disclosed about these plans.

Mizuho to launch digital currency to promote cashless payments in March

This coming March 2019, Japan’s Mizuho Financial Group will be introducing a proprietary digital currency that can be used for financial payments and remittances with the least possible cost. In this project, retail shops using the currency will be charged fees lower than that of credit card services.

The currency has its own dedicated app using QR codes to process payments. The value of the digital currency is pegged at 1 yen (1 cent) per unit, which will not fluctuate as compared to other existing virtual currencies. Users can also transfer funds to and from their smartphones and bank accounts. If this trend picks up and many other regional banks start providing the same service, users may be able to enjoy using the digital currency at many other participating banks.

Bitcoin Private (BTCP) Confirms 2 Million Additional Coins Secretly Pre-mined

Bitcoin Private (BTCP) has confirmed the creation 2.04 million units of BTCP, according to a statement published by the development team behind BTCP this December 2018. This is consistent and “mathematically accurate” with the report of Coin Metrics, stating that 2.04 million units of BTCP were secretly minted. The total supply of BTCP, according to the project’s whitepaper, is only equal to 20.4 million coins, which increased to 22.6 million counting the coins that were secretly pre-mined.

BTCP has tried to discuss the matter with the major crypto exchange HitBTC. However, as of this writing, HitBTC has not yet provided any comment on the issue. BTCP is now being traded at around $1.97, showing a 7 percent dip in the last 24 hours after the confirmation of the report has circulated.

Check back next week for more bite-sized crypto highlights!

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