Various alternatives to traditional money and mode of payments have been popping up in recent years. Cryptocurrencies come to mind when thinking about alternative options for transactions. With this option available to investors in the past years, what does this industry have in store for traders in 2019?
Cryptocurrency Successes
According to CryptoTechNews, the industry saw fluctuations in the first half of 2018, yet ultimately resulted in an increase as compared to 2017’s turnout. In an interview with CryptoTechNews, Dr. Prash P., CEO of Caleb and Brown (an award-winning cryptocurrency brokerage firm) clarified that price volatility within 60 days is only 4%, making it easier to predict prices.
Some of the highest performing coins include Bitcoin, Ethereum, Bitcoin Cash and Ripple.
Challenges Faced by Big Players
One challenge faced by the big names and players in the industry includes having limited access to the number of coins mined per year. According to Forbes, the excessive energy costs, as well as the tools and devices essential for mining these costs, makes the industry unprofitable. Another problem these key players encounter is the unstable price of Bitcoin. The everchanging landscape of the cryptocurrency industry makes it almost impossible to use digital currency as an accessible everyday form of transaction.
What makes the cryptocurrency industry prone to attacks is its vulnerability towards so-called miners. In such cases, false transactions push through the system, resulting in twice the number of digital coins spent. Bloomberg reports that this unfortunate circumstance was manifested in Ethereum Classic, which caused the company to undergo a 51% attack and decline in its transactions. With extensive damages garnered by the business, co-director of Initiative for Cryptocurrencies and Smart Contracts Emin Gun predict that the coin’s value will further spiral downwards.
What the Industry Lacks
International law firm Foley and Lardner conducted a survey gathering the insights of various respondents to see how investors perceive the industry. In their study, 84% of the respondents wanted to see certainty when it comes to regulation and law. Whilst 86% of them expressed a desire for self-policing, 89% believe that there should be standards on how to implement self-regulation.
Cryptocurrency is certainly offering a good alternative when it comes to investment. With these insights from investors themselves, addressing the challenges may be close at hand.
