5 Cryptocurrency Trends to Look Out for in 2019

2018 has been a bearish year for the prices of cryptocurrencies, with a sustained downtrend occurring throughout.

However, price trends are not the only significant trends to look out for in the industry as we have also seen a trend of increased regulatory activity, increased development of decentralized applications and increasing adoption.

Now that this year is coming to an end, what trends could we expect to see develop throughout 2019?

This article lists some of the possible industry trends to look out for in 2019.

Crypto Trend Predictions For 2019:

#1 Price Volatility Could be Lower

Crypto prices were less volatile in 2018 than in 2017, and this trend is expected to continue into 2019 as the market matures and more institutional player enter the space.

Lower volatility may help increase the adoption of cryptocurrencies which is key to the growth of the industry.

#2 Scalability Issues Will Improve

The scalability issues faced by developers in 2018 will likely continue into 2019.

However, as it has been such a big issue and there is currently so much focus on solving it, we could see some big progress being made in the fast-moving crypto industry next year.

Many people are expecting The Lightning Network to be the answer to Bitcoins scalability issues as it will significantly increase transaction speeds. The full version is expected to be released in 2019.

#3 State-Backed Cryptocurrencies

The interest of governments in the crypto space is growing, and the creation of multiple state-backed cryptocurrencies is a big possibility in 2019.

We have already seen a state-backed cryptocurrency launched in Venezuela called Petro, but this was created as an attempt to overcome the financial woes of its hyperinflated fiat currency and avoid the economic sanctions on it from the US.

However, many countries with more credible governments and financial systems are also exploring the creation of state-backed cryptocurrencies. Even the IMF released a paper exploring the use of central bank backed cryptocurrencies.

#4 Security Tokens

When a regulatory framework is clarified it will be possible for crypto projects to launch security tokens.

Security tokens will enable fundraising models that are more favorable to crypto investors as the tokens will be backed by an actual stake in the company selling them.

This is a big difference from the utility tokens we have seen so far sold through ICOs where the investors best hope of getting a return come from either massive adoption of the token or speculative price rises.

#5 End of the Bear Market

Cryptocurrency prices have continued to decline throughout 2018 and while it is impossible to predict exactly when this decline will end, at some point it will, and a new bull market will begin.

Bitcoin’s price has declined more than 80% since its highs, and historically this is similar to how much Bitcoins price has declined before starting a new uptrend.

Increased crypto adoption, institutional participation, and regulatory clarity could also help to lift the market from its current bearish state.

Sound Advice Going Forward

Nothing is guaranteed in any market or industry with analysts relying on probabilities and existing data to forecast what could happen in the future.

Whatever happens, going forward, it is always best for crypto users and investors to be well-prepared and take responsibility for their own well-being.

With so many hacking incidents and frauds occurring in the cryptocurrency industry this year, it is recommended that you take the necessary safety precautions to mitigate these risks.

Storing the private keys to your crypto wallets safely and encrypting the files is crucial. While storage encryption should be your focus, don’t forget to encrypt your internet traffic, too, when accessing sensitive information. A VPN is your best bet on proper data encryption, hiding it from prying eyes, while also enhancing the anonymity features that many cryptocurrency innovations bring. It is worth searching online to get a discount on VPN, as a quality service usually does not come cheap.

And finally, it is always recommended that you conduct your own research rather than following anybody else’s opinions blindly, especially when it comes to investing your hard-earned money.

Jerry Kirkham is an investment professional, and like every investment professional, he makes mistakes. Jerry encourages you to do your own independent "due diligence" on any idea that he talks about, because he could be wrong. Nothing written here, at Essential Savings, or anywhere else Jerry may write is an invitation to buy or sell any particular security; at most, Jerry is handing out educated guesses as to what the markets may do.