The world’s prominent currency bitcoin has been undergoing ups and down since the start of this 2017. It was valued at nearly $1,000 and it peaked at nearly $20,000 by the end of 2017. After experiencing exponential growth and reaching the highest peak in its value, it lowered down to nearly 11,000 before rising again. Though its volatility has been constant, it remained the popular currency in the world.
Another cryptocurrency that bears great potential is Ethereum. Charles Hoskinson, Cofounder of Ethereum said the cryptocurrency market would flourish after bitcoin alternatives that lack potential will fail. He opined there will be market consolidation after the crash. Many new cryptocurrencies have been rallying up in the market as investors have been eying for alternatives for bitcoin. In December, Ripple XRP surpassed Ethereum as the second-largest cryptocurrency in the world.
The lesser known cryptocurrencies have grown unprecedently in the space over past few weeks, which raised the total valuation of the virtual currencies to $1 trillion. Experts have been raising concerns regarding the growth of “unrealistic” projects.
The probability of failure of many new cryptocurrency projects is less as they are backed by a lot of money. Hoskinson said, “It’s really hard to fail when your burn rate is $5 million or $10 million a year, and you have $1 billion of capital.”
According to Coinmarketcap data, dogecoin, a digital currency inspired by meme was introduced in 2013, experienced a sudden rise in its value by reaching $2 billion only few days after hitting $1 billion. On the other hand, dentacoin, a digital currency focused on dental care industry reached $2 billion in market capitalization.
Another Cofounder of Steven Nerayoff conveyed that there are billions of dollars being invested in the Ethereum ecosystem. It could lead to two-fold or three-fold price increase by the end of 2018.
There has been a tremendous growth in various industries as fintech sector becomes more creative as oil & gas, gaming, and other industries investing in the sector. The interest in cryptocurrency space has grown enormously in 2017 and the space will expand more in 2018.