The end of 2017 was a hectic time for Bitcoin and ICOs of all kinds.
As the technology behind cryptocurrencies became more commonplace, more and more investors jumped at the opportunity to make a huge profit.
Or so they thought. When the bubble burst in December 2017, many were left disheartened at the loss of 60% in the value of their Bitcoins.
For those who are new to the cryptocurrency market, this was a cause for panic and confusion. For more seasoned investors, this was seen as little more than a temporary blip.
Regardless of where one stood on the issue, most investors thought it best to hold on to their Bitcoins in the hopes that they would recoup their investments.
Ups and downs in the cryptocurrency market
One of the cooler heads in the cryptocurrency space is Michael Vogel, founder of Netcoins. He sees the dramatic drop of December 2017 as completely normal. He calls the ups and downs in the market “corrections” that are a necessary part of establishing Bitcoin as a proper currency:
“For the most part, I don’t think this most recent correction is any different than corrections in previous years. These corrections are in fact how Bitcoin will truly establish itself as a sustainable asset class.”
Furthermore, he points out, investors need to look at the broader picture. If measured over the past twelve months, Bitcoin is still up by over 800% despite the recent drop in value. As more societal systems are considering the use of blockchain technology, he does not think that Bitcoin is going anywhere anytime soon.
Experts weigh in
Another hopeful player in the market is Alexander Lobanov, managing partner of USP Capital. He understands that many have become tired and distressed by the recent developments in the cryptocurrency market:
“I share the opinion that after the sharp rise period, an objective consolidation process took place. At the same time, the regulatory authorities were very active and added a negative sentiment to the market. I am sure that we are at the end of the next cycle of correction and stagnation. The new spring is blooming. Right now one can see non-typical growth of crypto-currencies which has not become a trend yet. I think that it is the beginning of a new growth cycle.”
The ICO market is changing too
With the emergence of new regulations from both governments and social media, the ICO market is set to change as well.
Not only will the regulations weed out some of the more shady elements of the market, like scam projects, but it will also promote more positive developments.
The amount of innovation that can be accomplished with blockchain technology is nowhere near its limit. New products, services and solutions are on the horizon.
The Lighting network is a perfect example of this.
Big IT corporations like IBM have also started to invest more heavily in blockchain technology, and will undoubtedly produce some interesting services.
What do you think the future holds for blockchain?
Leave your comments below!