1. Scale problem solved
Bitcoin is the most important digital currency, has the largest number of users and dominates about 40% of the market, as of mid-week.
Bitcoin currently cannot process more than 6 or 7 transactions per second.
The solution to this situation is 2nd layer off-chain peer-to-peer payment systems. For example, Lightning Network – allows off-chain transactions, thereby reducing costs to near zero and increasing speed.
In other words, these 2nd layer systems will solve Bitcoin’s problems – scalability and lack of liquidity.
2. More legal ICOs will be conducted
Just like last year, ICO (issuing virtual currency to raise capital) will impact the Ethereum network, because ICOs usually require a lot of Ethereum.
This could push Ethereum’s capitalization to $200 billion by the end of this year, from nearly $90 billion currently.
3. Management regulations apply
Many people believe that tightening management will have a negative impact on the digital currency market.
In Japan, the market also initially went down when authorities began to control Bitcoin.
4. Many new applications appear
Many companies have launched services that make it easy for people to pay with digital currencies.
This will help burnish the reputation of cryptocurrencies, as more and more companies trust them.
5. Institutional investors
The final reason why 2018 could be a great year for cryptocurrency is that it will be the first year that institutional money flows in here at a steady pace.
