According to experts, cryptocurrency market values are not only expected to rise, in general, including Bitcoin’s, but the growth for this year is expected to be even higher than last year’s. After falling below $ 6,000 for the first time since November, Bitcoin has stabilized around $ 7,000. Not just Bitcoin, but the total value of cryptocurrencies fell sharply in the last month.
Utility tokens (for example, those based on Ethereum, IOTA or NEO) and coins with aggregate utility for applications using the blockchain (as opposed to currencies such as bitcoin which theoretically have no added value) are the best bet for 2018 according to Mick Sherman, co-founder of Hercules Tech.
But in an interview with CNBC, the head of APAC business development at cryptocurrency exchange Gatecoin was optimistic about the revaluation of cryptocurrencies, attributing external factors such as institutional capital funding, recognition of regulatory bodies for the exchanges and major technology developments, like the implementation of the anticipated Lightning Network to Bitcoin. In addition, another factor responsible for cryptocurrencies value boost is an expected launch of a cryptocurrency backed ETF (exchange-traded fund) soon. An ETF is based on the price of an asset to allow bitcoin (and other cryptocurrencies) trading without having to buy the digital currency on exchanges. Some attempts to implement this in the past have failed due to rejection by the Securities and Exchange Commission, claiming lack of regulation and surveillance-sharing agreements between exchanges.
Jamie Burke, CEO at Outlier Ventures, believes that as of February “the market will likely go on a bull run, comparative, if not greater than last year potentially reaching the trillion-dollar mark before the proper crypto winter sets in where the market becomes more focused on proper market fundamentals”.
The motivation behind the crypto-hype and instability of blockchain-based assets is understandable. While the technology is truly revolutionary, it may be that many of its applications, including those added to utility tokens, will not be viable for years. Events such as sudden appreciation of some currencies, market bubbles and rebounds linked to these investments however, are already visible today.