Blockchain And Cryptocurrency 2019 Predictions – Vol. IV

Opinion | December 23, 2018 By:

Today continues our series of predictions from the industry’s thought leaders on what may happen in the coming year. 

By almost any measure, 2018 was a challenging year for the blockchain/cryptocurrency industries. Beyond the usual issues facing young businesses in hiring, marketing, technology and financing, companies were engaged in a crisis of confidence with investors, as the crypto markets lost 80 percent of their overall value from the beginning of the year.

Add to that the magic fountain of funding caused by the curtailing of initial coin offerings, increased government scrutiny and outright bans of certain activities, and the bitter battles between technology developers that caused market gyrations, and it’s amazing that any company survived such severe headwinds.

But heading into 2019, the survivors of this industry wide winter are showing faith in the underlying technology of blockchain and the continuing promise of cryptocurrency. They point out that institutional investors are still on the sidelines, and many retail backers are still not in the game in any huge way.

Add that to the continued interest of big businesses and the spirit of innovation shown by blockchain and crypto pioneers, and the story looks a lot brighter than mere numbers would suggest.

Block Tribune asked thought leaders in the industry for their takes on what may happen in the coming year. Now through the end of the month, we’ll spotlight their thoughts on what may happen in what all hope will be a happy and prosperous 2019.

David Gold, Managing Director of Dapix

BLOCK TRIBUNE:  Where do you see Bitcoin heading in 2019 and why?

ANSWER:  I think we’ll see a rebound in 2019 but probably not back to the levels seen in 2017 until the year after.  There were some built in drivers in the market in 2017 that caused the rapid increase and hype.  We won’t see those drivers again until the next wave of investment vehicles are approved by regulators and usability of tokens for currency and utility through solutions like the FIO Protocol enable crypto to move beyond just an alternative investment.

BLOCK TRIBUNE:  Have recent crypto plunges affected your outlook and/or plans for 

ANSWER: I think anyone in the crypto space who is rational needs to have a more measured view toward spending in 2019.  The good news is that means the projects will get much more real in 2019 and hype will dissipate.

BLOCK TRIBUNE: What role will stablecoins have in the market in 2019?

ANSWER: I think they will have a significant role in trading as they are a better and more rapid way for investors to move out of positions.  Going into 2020, when combined with enhanced usability solutions that enable the everyday user to feel comfortable with crypto, I think we’ll start to see some of the stable coins used on commerce.

BLOCK TRIBUNE:  Which sectors – energy, e-commerce, gambling – do you think will have the biggest impact in the blockchain industry in2019?  (Feel free to choose any other sectors)

ANSWER: The entertainment industries often lead adoption in new technologies.  Even the early days of the web were driven significantly by gaming, gambling and sex. I see something similar for crypto.

BLOCK TRIBUNE: What event would you like to see happen in 2019?

ANSWER: Full launch of the FIO Protocol across 30+ participating wallets and exchanges ushering in a new era of ease of use that enables the everyday person on the street to feel comfortable moving tokens/coins from their wallet to another.

BLOCK TRIBUNE: Is the ICO dead as an effective fundraiser?  Why or why not?

ANSWER: No, but volume of ICOs will be way down and they will become more “mature” and real.  Higher quality but lower quantity and most will be careful to toe the line of the regulators even though they may disagree with those rules.

Aly Madhavji, Managing Partner at Blockchain Founders Fund

BLOCK TRIBUNE:  Where do you see bitcoin heading in 2019 and why?

ANSWER: While bitcoin has struggled this year, we see a potential imminent global recession in 2019. We believe this has 2 aspects to it, an initial correlation with traditional capital markets which will continue to decline and bitcoin will also suffer. Meanwhile, an anti-correlation based on a flight of capital towards currencies independent from quantitative easing. We believe the overall result of this will be all-time highs for Bitcoin by the end of 2019 or early 2020.

BLOCK TRIBUNE:  Have recent crypto plunges affected your outlook and/or plans for 2019?

ANSWER: From our fund perspective, investments has been slower give the bearish market; however, we do continue to invest in solid projects with strong fundamentals. This includes security tokens which we believe have a strong future and we are part of this movement along with all of the ups and downs which will be part of this.

BLOCK TRIBUNE:  What role will stablecoins have in the market in 2019?

ANSWER: While stablecoins have garnered tremendous interest, many stable coins in reality have too high fees as part of the tokens are going to the team. On the other hand, many stablecoins will fail on the lack of transparency related to audits, adoption from the market, monetization strategy, or accessibility of the token. While we believe new stablecoins will develop and strengthen the majority of them will likely fail over the course of 2019.

BLOCK TRIBUNE:  Which sectors – energy, e-commerce, gambling – do you think will have the biggest impact in the blockchain industry in 2019?  (Feel free to choose any other sectors)

ANSWER: FinTech is clearly the best use case from a cryptocurrency perspective since inception. The ability to transfer funds across borders and to bank the unbanked instantly, through wallets, is an underrated game-changer. We also believe seamless e-commerce companies such as Every* will be big winners in 2019 leveraging blockchain based direct brand to consumer sales. We are also optimistic about peer-to-peer gambling and growing supply chain solutions which were previously not possible in a similarly effective manner without blockchain.

BLOCK TRIBUNE: What event would you like to see happen in 2019?

ANSWER: We would like to see the marketing of ‘Blockchain Companies’ come to a halt. We want the continued development or real solutions leveraging Blockchain rather than the many companies only talking about blockchain for the benefits of fundraising. This will help to propel our industry forward with real solutions and viral super DApps.

BLOCK TRIBUNE: Is the ICO dead as an effective fundraiser?  Why or why not?

ANSWER: Absolutely not, crowdfunding is the future and we’ve seen this time and time again. The previous form of ICO’s is effectively dead, but a new form of ICO fundraising, with legitimate companies, world-class teams, and robust governance will emerge for a new future of stronger decentralized fundraising. The JOBS Act Crowdfunding legislation from the United States may be one of the triggers to help refuel crowdfunding.