Given the recent developments within the cryptocurrency market, it is certainly easy to understand the apprehension felt by investors and the overall uncertainty conveyed by people within the industry. This uncertainty and vague development of cryptocurrency hasn’t stopped big name e-commerce companies like eBay considering integrating Bitcoin as a payment option. Yet the overall feeling is that cryptocurrency could be destined for a spectacular collapse after reaching such dizzying heights in such a short period of time. Either way you view the market, the fact remains that despite theoretical losses, investors are still reaping the return of entering the rise low before the steep incline and investors are still watching the skies for signs of correction.
Coming back from the brink
It is important to underline that even with the amount of uncertainty surrounding the market, the cryptocurrency market is vast and holds promise for investors. Bitcoin, for example, sits at the very top of current cryptocurrencies and is still up 10% as of November 2018. This gain is despite any current loses but is it enough to ease the minds of investors?
Volatility is common practice within cryptocurrency and although the value of Bitcoin is predicted by many to reach over $50,000 by the end of 2018, there a certain level of skepticism among investors. It’s not all doom and gloom however because regardless of recent downturns, the future of cryptocurrencies such as Bitcoin, looks bright given the time necessary to correct. Every market needs time to react and adjust to unanticipated downturns and cryptocurrency is no exception. The coming months will provide a clear picture as to the direction the market is headed and there are indications that the direction could stabilize or even trend upwards.
The Status of ICOs
Amidst the volatility that the market has faced in recent months, ICO’s have raised billions during the first quarter of 2017 and over the months of January and February the figure has crossed the 1-billion-dollar mark for the first time. According to CNBC, most funds raised through these projects belong in the U.S. which points to enduring strength of ICOs as a source of capital for companies. This level of capital is an encouraging sign and underlines the dominance of cryptocurrencies such as Bitcoin and shows that this commodity can be relied on to generate significant revenue despite the questions surrounding the future.
ICO pools are gaining pace and over the period of January to March of 2018, the market saw an increase of 70 new pools with members from 20 to 4000 over the course of the month, according to UTB. This surge also indicates the strength of Cryptocurrencies and points to the future development of Cryptocurrencies such Bitcoin. As we reach the beginning of the second quarter, don’t be surprised to see an additional surge in the number of pools being created as investors look to capitalize on growth in the market.
The Bottom line for the future
Healthy amounts of caution are always advisable when looking to make any investment and the same principles apply to the cryptocurrency market. That being said, the crypto market is far from knocking on deaths door and the market is reacting to teething pains as is the case with any new investment opportunity that gains overnight notoriety. As an investor, you may have to accept the realization that “no limit” gains may be over but there is still an incredible amount of ROI opportunity for savvy investors who can stay the course.