Cryptocurrency – Will It Live Up To Expectations?

Opinion | July 26, 2018 By:

While nobody can say with certainty what the future of cryptocurrency has in store, the fact remains that a huge amount of wealth is tied up in crypto and in bitcoin especially – therefore investors will be attracted to it. While the value of bitcoin is a long way from its peak in late 2017 – it remains at an exceptionally high price and even if it were to settle around the $6/7K mark long term, that is still an impressive price for what is a brand new class of asset.

In fact, there has been a handful of expert predictions that point towards price of bitcoin soaring by the end of 2018. The Fundstrat Global Advisors head of research Thomas Lee suspects the price will reach $25K by the end of the year, whilst co-founder at TenX Julian Hosp thinks we could see a price as high as $60K within 2018. These predictions are not without basis, however there’s no denying that nobody knows for certain what we can expect when it comes to the price of bitcoin. The level of constant speculation we see demonstrates the popularity and interest that’s still being shown by crypto investors, so the hype around bitcoin looks pretty certain to continue.

Recent news claimed there were over 800 ‘dead’ cryptos as a result of scam ICOs or tokens that now had little or no value. However this doesn’t necessarily point to crypto being some kind of fad or temporary phase. While that is undoubtedly a high number of failed or scam projects that many an investor may have lost money in, there are also far more legitimate and innovative projects that are going about things in the exact right way. The lasting success of the crypto-sphere will only become apparent in the coming years as all of the newly formed projects mature in to the businesses they are aiming to be.

The reality is that the concept of an ICO is still a very new means of raising funds, so we are all learning all the time. This means that the initial explosion of companies participating in ICOs will likely contain a high level of projects that ultimately won’t succeed, or will contain fundamental issues. In time, when this space matures and settles down, those looking to launch an ICO of their own will be able to learn from the errors of others and ensure they don’t repeat them. In this way, the rate of failed projects or ‘dead’ crypto tokens will slow down quickly.

There is also the impending effect of regulation in the space which is likely to have a significant impact. A large amount of so called ‘dead’ cryptos are tokens that were never designed to be a success, they were merely a ploy to con crypto enthusiasts out of their money. As regulation steps up, there will be much tighter control over cryptos and ICOs. Whether or not this is good news for investors, businesses and indeed the crypto-sphere in general will depend on the nature of the regulation. However, what does seem beyond doubt is that it will largely put an end to the number of scam ICOs launching – which will in turn help to lower the number of ‘dead’ cryptos being created.

As mentioned, this is such a young space, with so much maturing and growing to do in the coming years. The money and levels of excitement around crypto is already at an impressive level and will, in my opinion, only increase.