February 15, 2019
2019 Cryptocurrency and Blockchain Outlook
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Dear Crypto Investor and Blockchain Enthusiast,
What is the best way to describe the 2018 Cryptocurrency market? Ursaphobia! Ursaphobia is the "fear of the bear." Many traders in the crypto market are fearing the bear market, but crypto is in the process of building a solid support zone. Thus, there is no need to fear the bear in 2019.
Here is my outlook for the remaining of 2019.
Bitcoin and the crypto market are near the bottom
Bitcoin and other blue-chip cryptos are in the process of finding a bottom support zone. As the early months of 2019 slowly move toward the warm spring months, we will see many of the blue-chip cryptos begin to recover in price.
Many veteran crypto holders know Bitcoin has experienced five market cycles since its inception in 2009. During each market cycle, experts said “Bitcoin is dead.” The crypto industry and blockchain are at the doorstep of mass market adoption.
Result: Bitcoin and leading blue-chip cryptos will recover and march toward their all-time highs in the 2nd and 3rd quarters of 2019.
Many cryptocurrencies will fail to deliver on the goals outlined in their whitepapers.
During the bear market of 2018, development teams experienced loss of capital due to massive price declines. The declining market has lead to a cash crunch for many teams in the crypto industry. Due to this lack of funding, these affected cryptos will soon be missing their development goals outlined in their whitepapers.
Result: Cryptocurrencies missing their stated whitepaper goals will experience a loss in investor confidence and thus a further reduction in their market cap.
Cryptocurrency exchanges will start to delist cryptocurrencies.
As cryptocurrencies begin to move into mass adoption, many exchanges will be reducing the number listed coins.
As investor interest begins to increase during 2019, exchanges will begin to self-regulate the quality of coins listed. They will begin an aggressive review to ensure the cryptocurrencies they offer
Result: Self-regulation will become more evident in the crypto industry. 2019 will see an increasing number of exchanges delisting coins.
The issuance of government-backed cryptocurrencies will increase.
2019 will see more government-backed cryptocurrencies in the ecosystem. Here are some examples of early potential projects:
Result: Countries will begin to form trading blocks and use cryptocurrencies as a method of payment for partners within trading blocks.
Cryptocurrencies will be categorized as an alternative asset class
Similar to real estate, cryptocurrencies will officially be recognized as an alternative asset class. As broker-dealers begin to offer custodial services for cryptocurrencies for retail investors, cryptocurrencies will soon be seen as a valid asset class for high net worth portfolios.
Result: During the 3rd and 4th quarters of 2019, broker-dealers will officially introduce asset allocation models that will include a weighting for cryptocurrencies.
Well-known brands will introduce cryptocurrencies to their customer base.
Brands with massive customer bases will roll out crypto-based programs to their customer base. This will create mass recognition and adoption for the overall crypto ecosystem.
For example, BitTorrent, the file-sharing company with 100 million active users, was purchased in 2018 by the crypto giant Tron. Tron has since created and introduced a cryptocurrency called BitTorrent (BTT). This will provide an incentive for the users of the BitTorrent file sharing system.
Result: Mass adoption of crypto will begin during the 2nd and 3rd quarters of 2019 thanks to well-established brands with massive customer bases.
Both government and private companies will begin making public announcements and will start issuing press releases on the successful implementation of blockchain technology.
Distributed ledge technology will foster the acceptance of cryptocurrency and blockchain technology in both the public and private sectors. For example, the WTHR token is utilizing the Neblio Blockchain as a way of sending and storing weather sensor data on the blockchain.
Result: Blockchain innovation will soon be a part of government and private-sector implementation.
New coins will replace some of the top 10.
During the 2nd and 3rd quarters of 2019, relatively unknown coins will begin to replace some in the current top 10 coins. The reason for this will be due to the mass adoption of these little-known coins.
Result: Coins will large outstanding number of coins combined with market adoption will soon become top market capitalized coins.
Pension funds will start to dip their toes into the crypto waters.
Pensions and family offices will begin to look to allocate small portions of funds into cryptocurrencies during the 2nd and 3rd quarters of 2019. As pension obligations increase over the next decade, managers will be seeking the alpha cryptocurrencies can provide.
Result: Pension funds and family offices manage a massive amount of wealth. An allocation of a small portion of their assets under management will help to drive cryptocurrency market cap to all-time highs.
A cryptocurrency ETF will be approved by the SEC in 2019.
The SEC will give the green light to at least 2 BTC and cryptocurrency ETF’s during the 2nd and 3rd quarters of 2019.
Result: A SEC approved ETF will give institutional and retail investors the green light to begin allocation of funds into cryptocurrencies.
Well-known companies will pay their employee in cryptocurrency.
Innovative brands will start to give employees the option to receive compensation in BTC and other cryptocurrencies. Currently, cryptocurrency compensation is mostly limited to technology companies. However, as BTC and cryptocurrencies become more mainstream, well-known brands in non-technology-related industries will begin to offer this compensation option.
Result: Offering employees the option to be compensated in crypto will further increase mass adoption of cryptocurrency.
Why Listen to my 2019 Outlook?
Prior to getting involved with fintech, I spent 15 years in the financial industry as a registered investment advisor, Series 7 stockbroker
Where we are at today reminds me of the mid-1990s. The underlying internet technology was just becoming mainstream and the public was just starting to understand and accept the technology. I believe the remainder of 2019 will be similar to the mid-1990s as Bitcoin and cryptocurrencies propel us forward to another massive breakthrough in technology usage.
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