Will We See The Cryptocurrency Industry Rise Soon?
The cryptocurrency is one of the most exciting industries that relate to finance and technology simultaneously. It has experienced noticeable growth recently, and millions are familiar with (and participating in) bitcoin trading now. If you go up to a random person on the street and ask about cryptocurrency, they have likely heard about it. That simply wasn’t the case even a few years ago.
While the expansion and growth in the space have been exciting and inspirational, there are many who believe that the growth isn’t even close to being done. Many believe that the industry will see another meteoric rise in the near future. But is this viable? Or will the industry revert back to slowly growing like in the early to mid-2010s? Well, that is exactly what this article is going to take a closer look at.
Let’s take a closer look at whether or not we are likely to see an upcoming rise in the cryptocurrency space, or whether it is nearly at its peak.
The Past Growth of the Industry
In order to accurately look ahead into the future of the industry, we need to take a step back and examine the past. The cryptocurrency industry began its existence with the creation of Bitcoin, which is the very first cryptocurrency. Bitcoin was officially brought into existence on January 3rd, 2009. Over the next few years, a number of coins came out, but the industry wasn’t growing as quickly as some would like.
In the first five years of the cryptocurrency industry’s existence, the total market cap was around $1.5 billion, with Bitcoin representing around 90% of the total market. Even though the numbers are not that big compared to what we have now, it was enough for new people and companies to join cryptocurrency.
Recent History of Cryptocurrency
So while at the beginning the cryptocurrency industry has shown relatively slow growth, this all gained momentum in late 2017 and early 2018. By the Q1 of 2017, the industry has been starting to get some consistent small growth and was up to around $15 billion. However, what happened during that year has changed cryptocurrency forever.
By the start of 2018, the market cap of the industry was over $700 billion, which means the industry grew by about 45 times in a single year. As you could imagine, this growth attracted the attention of millions of people all over the world, and cryptocurrency was thrown into the public eye.
So what led to this massive growth? While it is impossible to know all reasons for sure, many people seemed to take an interest in the underlying blockchain technology, the benefits it can provide, and innovations it utilizes. Also, many reputable companies and experts in the finance and tech spaces began to talk about cryptocurrency. All of this compounded into a reason for massive growth.
The industry has calmed down recently but is still much larger and more diverse than ever before. While the past isn’t always guaranteed to reoccur, it is reassuring to know that the industry has exploded at certain times in the past, so similar growth can theoretically happen again in the future.
Looking Ahead to the Future
So what does the future hold in the cryptocurrency industry? Well, many people believe that the industry will see some massive growth and expansion once again in the coming months or years. But are we able to predict this boost? Well, first of all, we are seeing a much greater amount of businesses adopting cryptocurrency. As crypto becomes more mainstream and easier to use, understand, purchase, and invest in, its rising seems to be more plausible than ever before.
Similarly, there are new cryptocurrency projects launching or holding ICOs, many of which are doing some very exciting things that could push the industry forward. With the invention of such projects, more people are starting to consider cryptocurrency usable.
Also, many more countries around the world are loosening restrictions or ceasing bans on cryptocurrency, which opens up the industry to millions (or even billions) of new people. As more financial institutions and regulators around the world assist in the facilitation of crypto transactions, more people have the possibility to join the market.
Another thing that could lead to the next boom of the cryptocurrency industry is influencers’ opinions. Politicians, banks, and other reputable people and organizations are now frequently talking about cryptocurrency and the potential benefits that it’s blockchain technology has. If cryptocurrency gets more use and attention because of this, don’t be shocked to see the industry expanding.
However, it is also important to remember that the industry is incredibly volatile and unpredictable. While it is possible that cryptocurrency would see a huge boost in the coming years as many predict, we do not know for sure. The industry is still relatively new, and this unpredictability and volatility can make it hard to accurately see where the industry is going. We can all speculate and use our best judgment, but it is important to remember things can change in the blink of an eye.
In conclusion, there are many of those who believe we will see a major boost in cryptocurrency in the coming years. Nevertheless, it is also important to temper expectations and remember that the industry is quite volatile, so it is impossible to know for sure.