As we wrap up 2018, here’s what we know – cryptocurrency prices are down as well as retail enthusiasm for the cryptocurrency space.  But what can we expect from the 2019 cryptocurrency market?  Well, we just have to take a look at current levels of cryptocurrency interest from institutional point-of-view as well as behind-the-scenes to understand what’s happening.  What can we expect from the 2019 cryptocurrency market?  Well, let’s dive in.

Active Bitcoin addresses have been increasing since an April low – verified cryptoasset users climbed from 18 million to 35 million this year.  The sub-Reddit of r/cryptocurrency recently saw the number of subscribers pass 1 million for the first time since it began in December.

With these numbers, it’s safe to assume that interest in crypto, from behind-the-scenes, is actually rising.  Industry experts have said that they expect adoption to increase in 2019.  But they don’t believe adoption won’t come in the form of cryptocurrencies like Bitcoin or Ethereum as much as they believe that 2019 will be the year of blockchain-based platforms and systems and security tokens.  These will be the platforms and systems most adopted by enterprises, businesses, and institutions.

Security Tokens

Cryptocurrencies and utility tokens have had a bad year – we all know this.  Most cryptocurrencies have lost up to 90% or more of their value from the highs of 2017.  The expectation is that security tokens will rise in prominence in 2019 – speculation is that this will be from business and financial institutions.

“With the era of the utility token largely gone, the security token stands to take its place,” predicts Brent Jaciow, head of blockchain at Utopia Music, a blockchain-powered music data tracking platform.”

Vlaidslav Dramaliev, the head of digital marketing at Aeternity, an open source blockchain platform, agrees.  “2019 will also see big finance emerge as a significant player in crypto markets… Throughout the global startup ecosystem, as well as with established companies that are willing to go public, security tokens will also gain more traction.”

We’ve known for a while that big financial institutions are wanting to get into the cryptocurrency market.  At the end of November, Nasdaq announced that they would begin allowing Bitcoin futures trading in Q1 2019.  We also know that Bakkt is coming, as well as big trading firms slowly creeping into the cryptocurrency market, such as TD Ameritrade.

Time to Put Up or Shut Up

2016 and 2017 were the years of the Initial Coin Offering (ICO).  2019 is the year that these projects will have to show what they’ve done with their investors money.  Many high-profile token sales will begin launching their platforms and products.  This information can be gleaned from the high-profile ICOs respective roadmaps.  ICOs such as SALT, Kyber Network, and Enigma, all have launches, updates, or expansions in 2019.

While 2019 will be the year for many ICO-funded projects to mature in 2019, adoption of this crypto tech and blockchain will most likely be driven by established corporations.  VISA plans to launch its own blockchain-based digital identity system for cross-border remittance, and Kakao, South Korea’s messaging giant, plans to launch its proprietary blockchain ecosystem in Q1 2019.  Samsung has filed numerous patents for a cryptocurrency wallet which might be integrated in their smartphones.  There is no doubt that together, with ICOs and established companies, blockchain is going nowhere.

Blockchain in Logistics

One of the strongest use-cases for blockchain technology and its immutable chain is in logistics, particularly, how it pertains to the food industry.  Earlier this year, we remarked how Wal-Mart plans on using blockchain for its food delivery logistics for every part of their food logistics system by end of 2019.

We had remarked how this is a smart idea, especially if there’s a recall involved, since produce, packages, and anything shipped logistically can be tracked down with the immutable record of blockchain – if successful, one can surmise that the days of nationwide mass recalls for foodstuff that affects only one area will be gone due to precisely knowing where the tainted items were shipped and sold.

2018: Stablecoins 2019: Central Coins?

2018 was the year of the stablecoin.  Could 2019 be the year of the Central Bank Digital Currency (CBDCs?)

Venezuela is the most infamous example of a CBDC with its launch of the Petro in 2018.  However, there is growing interest around CBDCs.  Need an example?  Just ask Christine Lagarde, managing director of the International Monetary Fund (IMF), who said in November: “Should central banks issue a new digital form of money?”

Lagarde, in her speech, pointed out examples such as Sweden, Canada, Uruguay, and China, who are all considering issuing their own CBDCs.

This is a mull point, however, since CBDCs don’t really need a decentralized blockchain to operate.  The acronym gives way to the hypocrisy of chasing after such a pipe dream, however, it’s important to note that cryptocurrency and blockchain is no longer the stuff of internet anarchists – central bankers are now discussing adopting them.  More proof that we’re not going anywhere?

Adoption

Admit it or not.  Reject it or not.  It’s time to face reality.  Blockchain and cryptocurrency are not going anywhere.  We are moving, promptly and with resolute determination, towards adoption.  2018, regardless of the cryptocurrency market, was a successful year for adoption.  Just ask Dash.  But 2019 will be even more successful.  Speculators have said that the recent pop of the speculative bubble in cryptocurrency will only aid in adoption.

“We are already seeing the positive impacts of the bursting of the speculative bubble,” says Muhammad Ali Chaudhary, a co-founder at Inkrypt.  “While all these changes might not be apparent to the average crypto/blockchain investor, they will bare fruit in the near future, with launches of real products and marketing that is focused on adoption rather than speculation.”

2019: Year of Adoption

As our own team has said countless of times this year, adoption is key.  Utility is key.  Matt and Kurt have been telling everyone they can that utility is what drives adoption.  With that in mind, we firmly believe that 2019 will be a great year for cryptocurrency.

Many have bemoaned the demise of cryptocurrency, citing the market as the death knell for the industry.  However, with the information above, with the knowledge of how disruptive and truly innovative blockchain technology is, we all know that those of us who are still involved in this market are early adopters.  Look at the number above – 35 million active Bitcoin addresses.  The world’s population sits comfortably at 7.7 billion.  Just for Bitcoin addresses, that’s 0.005% of the world population using an active Bitcoin address.

Where will you be when that number turns to 1%?  5%?  10%?  Big financial institutions know that this will come.  That’s why they’re willing to spend money to invest in ways to access this market easier via ErisX.  This is why exchanges like Bakkt are highly anticipated.

Governments are coming into the market.  Ohio recently allowed business to pay their taxes in cryptocurrency.   The US Congress is announcing bill after bill that is cryptofriendly.  Worldwide, governments are becoming more and more friendly towards cryptocurrency.

For long-term adoption, do you truly doubt the magnitude of cryptocurrency and how it’ll affect the world?  If you have any doubts, let us know.  Give us a try.  Let us know what your plan of action is.  Join us for a prosperous 2019 – this’ll be the best decision you’ve ever made. Let us know what you think on our Facebook page.