Whats happened to Crypto-currencies in 2018? And where next in 2019

Top 3 Fintechs to watch in 2019
Top 3 Fintechs to watch in 2019

Over the last 12 months, crypto-currencies such as Bitcoin returned to earth with a massive bump after recording highs of around $20,000!

Things are always easy in hindsight and Fast Company’s recent analysis of the situation provides two key factors that caused the bubble to grow and grow and grow:

  • The masses – when every person and their cat is jumping into an investment, it creates demand and this in turn causes prices to rise
  • Emotions vs value – many people based buying decisions on their emotions rather than intrinsic value of the underlying asset

Interestingly from a business perspective, the key events that led to major investors and organisations losing confidence in this new technology included:

  • Lack of security – the three largest hacks from 2014 to 2018 led to a $1billion of crypto-currencies disappearing
  • Regulation increased – various jurisdictions began to apply new regulations to protect users and investors
  • Consensus decreased – the developer community could not agree on improvements which led to a range hybrid crypto-currencies coming to life

The conclusion from this period is that crypto-currencies are no longer in vogue but the underlying blockchain technology shows much potential for industry uses such as trade finance and tracking asset ownership.

Further reading to improve your knowledge of digital currencies and blockchain technology:

What the hell happened to crypto this year?

Crypto winter is here and we only have ourselves to blame

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