By David Drake
2018 started on a low note for the cryptocurrency market with most cryptocurrencies losing up to 30% of their value during the cryptomarket crash in January. The market is still struggling to get back on its feet after the crash. However, several factors continue to drag the recovery process.
Strict regulations in India and South Korea, China’s outright ban on cryptocurrency exchanges, cryptocurrency scams and warnings by prominent investors on dangers of cryptocurrencies are all impacting the market negatively.
Can the cryptocurrency market regain traction in the coming months? AssetToken’s Lead Digital Strategist, Todd Nichols thinks it will.
“I believe cryptocurrency can still gain traction. What I think is missing is true value. Most, if not all, cryptocurrencies are based on perceived value and are nothing more than concepts. A real world inclusive crypto that has true value would help gain traction,” he says.
Most players in the cryptocurrency space however see the recent cryptocurrency crash as one that was necessary to correct the market following high speculation experienced last year.
Dr. John Mathews, the CFO at Bitnation notes that “January’s “crypto blood bath” erased many of the gains made in December 2017. This price correction was necessary to allow the markets to rationalize. Cryptocurrencies will continue to gain traction through 2018 as the technologies mature and become increasingly useful and easier to use.”
While sharing similar sentiments on the positive correction the recent crash brought about in the cryptocurrency market, Crowd Genie’s founder, Akshay Mehra feels the market will regain traction. According to him, cryptocurrencies such as Ethereum will continue to gain value as more users join the platform.
“I am confident that cryptocurrencies will continue to gain traction. I think Ethereum will continue to grow, because as a foundation for smart contracts, its application is rapidly gaining more popularity, and this should result in it decoupling from Bitcoin this year,” he says.
Further, Mehra sees blockchain, the technology that underlies cryptocurrencies becoming the major vehicle through which real globalization will be achieved.
“Blockchain technology is revolutionary in terms of security and transparency, which has the potential to disrupt 5-7 industries completely. This technology will ultimately help us to achieve true globalisation, without the need for gatekeepers,” he adds.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.