The cryptocurrency market in 2017 hit the public with the scale of development. Summing up the results of 2016, analysts noted that cryptographic moves forward by leaps and bounds, and predicted that the trend will continue. It was not just preserved, the cryptocurrencies exceeded almost all forecasts in 2017 that were made a year ago.
Key events on the cryptocurrency market in 2017
First of all, the need of futures as such suggests that large players have become interested in cryptocurrency. Consequently, the crypto market can expect multi-million investments.
Secondly, this is the first cautious “official” step of cryptocurrencies in the traditional market. The first is usually followed by the second, third and so on. It is not excluded that soon these steps will acquire signs of a marathon, since the profitability of cryptocurrencies exceeds the profitability of other assets. Investors who believe in the prospects of “coines” and skeptics will take advantage of this – just the latter will bet on short-term investments.
After the introduction of taxation in the United States, some holders felt less free, but most breathed a sigh of relief. This measure, according to investors, is the first step on the path of cryptocurrencies to full recognition in the country, and therefore to the emergence of guarantees and protection from the law.
In the post-Soviet space, Belarus distinguished itself, legalizing cryptocurrencies at the end of December and thus, it seems, gave impetus to their recognition in the CIS. At the Ukrainian forums began to express opinions that Ukraine will be next. And in Russia, plans to legalize cryptocurrency have been underway for several months and, obviously, will be implemented in 2018.
It has become the most notable in China, since China has the status of one of the largest trading states and many mining farms are giants based there.
Allowing the Chinese authorities to cryptocurrency would increase their turnover on the world market hundreds of times – and in the same way, only in the opposite direction, the ban worked. The consequence was one of the biggest falls of Bitcoin in the entire history, and after it the altcoins also fell (however, later both Bitcoin and the demanded altcoins were not restored by China as the world economy lives alone).
The ban on cryptocurrency in South Korea, Vietnam and other countries did not cause such consequences, since their presence in the market is much less significant, but the status of cryptocurrency has been slightly lowered.
How has the perception of cryptocurrency changed in 2017
At the end of 2016, the crypto market looked for most to the way the new asset market was supposed to look like, which recently appeared, is not recognized by anyone, it is not clear how it works and it is not known why it costs so much. That is unreliable.
The overwhelming majority of large investors belonged to cryptocurrencies with a known skepticism, reaching to the irony that they say, another toy of programmers, which, perhaps, after a certain number of years, will shoot, but we still have to live to see it.
The pillars of the financial world finally “noticed” the assets, which for the year grow by 10,000%, have no signs of financial pyramids and are something completely new. During the year, they expressed different opinions, but the further, the more positive they were.
As soon as the public’s awareness of what constitutes a blockchain increased, people began to understand what its value was. The crypts in crypto media explained to people that the requirement to “touch and evaluate” cryptocurrency is akin to the requirement to “touch and evaluate” the Internet and that the value of cryptocurrencies is measured not by the physical equivalent, but by the convenience of the consumer.
Cryptocurrency market in 2018: forecast and expectations
In 2018, cryptocurrency is expected to be legalized in a number of countries and, most likely, prohibited in some others. What kind of decisions will be made depends on how cryptocurrency will behave in the market, how much investors’ expectations will meet, how much they will develop technically. Bills on giving legal status to cryptocurrencies are already being prepared in France, in Russia and in many other countries.
In many ways, they will determine the further development of the region. Obviously, the recognition of cryptocurrencies will provoke the emergence of outlets. It is possible to spread the practice of paying wages in cryptocurrencies, especially in the field of programming and in areas close to the blockchain industry.
Also, government policy will determine the policy of banks. Most likely, in 2018, some banks in countries where cryptocurrencies are legalized will begin to consider introducing “coins” into their systems, although this is unlikely to be realized in practice – perhaps by the end of the year with a positive trend in the development of the crypto market.
Cryptocurrencies, most likely, are waiting for mutual integration. Today there are many promising technologies, but each is implemented in its own currency. If you combine them, you can achieve truly progressive blockchain solutions that will determine the future of the digital economy.
Probably, the development of the blockchain development will be expanded, new programming tools will appear, the emergence of more convenient platforms will be possible. Significant prospects have the language of smart contracts. It is possible that in 2018 it will be among the top ten existing programming languages.
Also among the expected technical innovations are the blockchains, that can adapt to the needs of any person. Private blockchains can be created by private individuals and companies, and the public version will be used, for example, by developers, for whom it is important to increase the level of trust in their product.
And the American entrepreneur and hedge fund manager James Altusher believes that cryptocurrency in 2018 will reach the point of technical development, when their advantage over fiat money will become obvious.
However, the opinion is expressed that tokens can be an excellent alternative to bonus systems. And this means that practically every trading network will have its own currency. Moreover, some entrepreneurs can start the launch of trade networks by means of ICO.
Billions of dollars will go to the market, and this is another reason why it is difficult to predict something, since it is not clear how cryptocurrencies will react to such investment flows. Until it becomes clear how big players will behave, it is difficult to predict anything, but definitely in the new year we will have a lot of interesting things in the market.