Meanwhile, 2018 is set to be a watershed year for blockchain technology in several ways.
Global business spending on the technology will jump to $4.1 billion, or 55% year-over-year, in 2018,
according to PricewaterhouseCoopers, driven by increased interest from financial services firms, and
banks in particular.
This is set to make 2018 a pivotal year for the blockchain industry. Next year we will see the release of
blockchain-focused startups, and bigger companies competing for market share and solidifying their
position in the sector.
However, analysts expect cryptocurrency investment will significantly decline next year. With the focus
shifting to how businesses and financial institutions can benefit from the blockchain, future expectations
for investors in cryptocurrency will be further diminished.
For bitcoin to continue to gain the financial traction that it has received this year, we need businesses to
adopt the technology, which is challenging because of a lack of liquidity.
We see a similar situation with other cryptocurrencies in terms of liquidity, however, we expect liquidity
issues will be resolved in the longer term as cryptocurrencies become more mainstream and offer more
beneficial solutions, such as the use of smart contracts.
There is strong reason to believe that the crypto sphere will continue to gain significant attention in
- With the currency market exceeding $100 billion in value, we see cryptocurrencies as offering a
great opportunity for investors.
In the long run, the cryptocurrencies in the top 10 can potentially be worth much more than their
current market capitalization.
The question now is whether we will see the same kind of market capitalization expansion as we have
seen this year. Looking at the performance of the crypto sphere over the last six months, it appears that
the price will decline in the short term, and investors should prepare themselves for a more typical
crypto market in 2018.
Matching current performance, a recent post from the crypto industry journal Ethers can have predicted
that the crypto market will fall by 50% over the next year. The predicted drop in price over the coming
year is expected to be driven by a decrease in growth from the market, as well as decreasing volatility
and an increase in cryptocurrency liquidations.
However, the report also said that crypto has a bright future as the world moves further into the digital
age and that the liquidity will eventually be there for investors. Investors should still plan on holding on
to their investments over the next year to see if the future comes true.