With the continued soaring prices of Bitcoin, in particular, many experts predict that the market cap is likely to reach $1 Trillion, next year.
While most users are currently stunned by Bitcoin surpassing the $7500 mark this week, most experts seem to agree that this is only the beginning. It is likely that 2018 will be a year in which cryptocurrencies, blockchain and initial coin offerings (ICOs) undergo radical changes.
In 2017 alone, a total of $2 billion was collectively invested in ICOs worldwide. While many have considered this a breakthrough, many have speculated that the breakthroughs in 2018 will dwarf this achievement significantly.
According to experts, in 2018, a total of $20-25 billion is estimated to be invested in ICOs, and this is only the beginning. In addition, the cryptocurrency market cap is speculated to bypass the $500 million mark and strongly make its way to $1 trillion before the close of next year. This will be made possible as more institutional money is readily making its way to the cryptocurrency market.
However, what then will happen to the prices of cryptocurrencies such as Bitcoin and Ethereum once institutional money becomes a more prominent factor? Well, experts seem to agree that this will only encourage cryptocurrency prices to reach new heights.
Experts believe that soon crypto indexes will split into two different sorts of digital assets: securities that tokenize assets and then equities. All cryptocurrencies that fall outside of these two polarizations will then be used with app tokens and be used as products and services.
The conditions to set these events into motion are already in place. A radical mind shift in our approach to ICOs is likely to contribute hugely to this change in cryptocurrency environment. This mind shift includes a radical call for much needed regulatory policies that are in compliance with legislative conditions. Once these have been put in place, it will open the floodgates to includes the corporate market.
However, several other factors are also at play.
Experts have speculated that Fractional Reserve Banking is likely to completely unravel which would allow for cryptocurrencies to devalue fiat currencies and cause some erosion in its spending power. As this happens, people will gradually turn more and more to cryptocurrency.
Several powerful nations have already announced that they are developing their own national cryptocurrencies, including Russian, Japan, and several countries in the Middle East. These national cryptocurrencies will be fungible against cryptocurrencies.
Furthermore, new developments in blockchain technology will soon enable investors to buy into the market while also reducing the market volatility. Certain market actors will make cryptocurrencies an increasingly attractive option for investors to boost their portfolio performance.
Experts have also speculated that equities will become tokenized, which will once and for all dispel all rumors that equate ICOs with Ponzi-schemes. ICOs are considered to remain the preferred method of raising capital.