Bitcoin and other top cryptocurrencies have had a great week. Bitcoin is up 20% and at one point Ethereum, was up 15.2%. But cryptos in general have slid thus far this year. But this price volatility is not unexpected as blockchain technology and cryptocurrencies establish themselves and investors start to realize their potential value.
Foundational crypto coins like Ethereum and Bitcoin have only begun their climb into mainstream adoption. There is no question that blockchain tech and cryptocurrencies will become as broadly adopted as the internet. And Ethereum and Bitcoin will form the backbone of all this new digital infrastructure. One of the things that catalyzed the market last year was that Ethereum got to a place where you could build apps on top of it.
The ability to issue tokens led to the initial coin offering (ICO) craze. In 2017, ICOs gathered $3.8 billion, and so far this year, that figure has soared to $12 billion. The best ICOs will become great successes and the vast majority of those will likely reside on top of the Ethereum network.
So, despite any bearish sentiment, the digital currency market is moving forward at full speed. In just the past week, more than a dozen major events have taken place. And that is attracting some big investors. Peter Thiel invested in Block.one, Steven Cohen invested in crypto hedge fund Autonomous Partners. Tim Draper, is one of Bitcoin’s biggest supporters. Why are these tech gurus and financial masters so confident? Because the blockchain market is growing rapidly.
To best understand this growth, you have to look at three unique factors: regulation, application, and accessibility. In 2017, when it came to application, everyone was excited, but very few understood relevant use cases. When it came to regulation, there simply wasn't much of it, and that left investors vulnerable to fraudulent companies. And finally, when it came to accessibility, there was still a lot to be desired. Fast-forward to 2018, and all of that has changed:
1. Regulatory changes
A recent article from Forbes emphasized the growing safety of the blockchain space, stating that U.S. agencies have gotten more involved with cryptocurrencies and now have started to track and punish cryptocurrency crime. In the United States, the Securities and Exchange Commission (SEC) has doubled down on making sure investors are protected against fraudulent characters. And this regulation is in no way slowing the ICO market down.
2. Understanding Blockchain potential
Today, the world has a far better understanding of blockchain technology than it did in 2017 when blockchain was being embraced by everyone. Now, both companies and individuals are starting to understand real applications. IBM announced that it was working with blockchain company Stellar to launch blockchain banking across multiple countries. The Enterprise Ethereum Alliance has continued to grow with over 100 companies supporting the use of Ethereum as a tool for enterprise, including JPMorgan Chase, Microsoft, Intel, MasterCard, and BP.
3. Digital Assets are more accessable
Coinbase has been given the green light to start listing tokens that are considered securities. This is big news. And it isn't just the exchanges that are growing. Today, there are many ways investors can get their hands on digital currencies without even touching an exchange.
So, even when hype is low and stories of impending doom are rife, the digital currency market is still forging ahead
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