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Where Should Cryptocurrency Be in 2019

Traders Magazine Online News, July 23, 2018

Bitcoin will officially turn 10 years old next year. With 2019 being only 6 months away, now is a good time to think about where the crypto market is going to be in half a yearís time.

Bitcoin was made in response to the Global Financial crisis in 2008. And today, many other cryptocurrencies have followed. So far, there are around more than 1,600 digital currencies present, not to mention other blockchain projects.

In 2017, Bitcoin was able to reach its all-time high at almost $20,000. However, things went bearish ever since the start of 2018. At this point, Bitcoin has dipped below $6,000 a few days ago. In reality, so-called crypto investors have different views when it comes to its future value. There are experts who believe that Bitcoin is about to hit $50,000 this year while there are those that have a more tapered prediction saying that Bitcoin will have a hard time to go up again.

Tough but Clear Regulations

One of the reasons behind the bearish performance in 2018 so far is because of the regulatory changes made by regulators from different parts of the world. China is among the first that decided to ban crypto-related activities, including crypto exchanges in the country in 2017. In addition to this, there is a witch hunt being done against crypto mining operations. In the coming months, especially in 2019, expect tougher but clearer regulations for the crypto market.†

Though regulatory changes have caused panic and even concern on the part of crypto investors and businesses alike, these changes are needed in order for the market to mature. Expect to see this trend being carried out throughout the globe.

The US Securities and Exchange Commission is slowly trying to define exactly what cryptocurrencies and ICOs are. And so far, William Hinman, who works as the agencyís director of the division of corporate finance mentioned that Ethereum isnít a security. His statement follows a similar tune as SEC chair Jay Clayton as he also cleared Bitcoin from being regulated in the same way as stocks and bonds or other investment vehicles.

Fewer ICOs?

Though Bitcoin and Ethereum have been considered as commodities by the SEC, it isnít exactly the same for ICOs. ICOs, on the other hand, have been viewed as securities. This distinction matters since being considered a security means being subjected to the same regulations applied to different investment vehicles.

What this means is that there could potentially be a decrease in the number of ICOs in the coming months, especially in 2019.

Keep in mind that in the first quarter of 2018, ICOs have generated more funds than the entire 2017. In April, it was reported that ICOs were able to raise $6.3 billion which is equivalent to 118% of the value raised by ICOs from last year. But it seems that this could change soon.†

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