2018: Trends to expect

The Cryptocurrency market (“market”, “cryptomarket” or “the market”) is dynamic; it evolves with world geopolitics. It will be accurate to state that cryptomarket growth is directly linked to parameters of the global financial markets. This is because the market only grows when value is moved from one asset class to another. At this moment in time value is primarily resident in the global financial system in the form of fiat thus the movement of funds in focus is from fiat to cryptocurrencies and vice versa. This movement of funds is the key parameter to be analyzed and mastered if one is to accurately predict market trends, projections and possible directions of the market. In other words being able to accurate say when and why funds move is the key to controlling and maximizing market volatility for profit.

The following write-up is intended to give some analysis of:
– Market trends to expect in 2018;
– General list of potential runners (profitable currencies to invest in);

 

Market Capitalization

A financial analyst on CNN said “…bitcoin and other cryptocurrencies create money out of nothing”. At face value the statement may seem accurate; it however cannot be farther from the truth. Cryptocurrencies DO NOT create money out of nothing; rather they channel/move funds from the global financial system to the Blockchain-based disruptive financial system known as the Cryptocurrency market. This movement is the expected disruption; it is a financial revolution. An estimate, from Business Insider, puts the total value of the global financial market at about $80 trillion and this is expected to hit the $100 trillion mark in 2018. Goldman Sachs also further states that this rise to $100 trillion will be almost immediately accompanied by a significant dip in size.

In comparison the total market capital (“marketcap”) for the cryptocurrency market is currently at about $530 billion . This represents 0.53% of the global financial market. Bitcoin accounts for 35% of total cryptomarket capitalization representing 0.1855% of global financial market capital.

Cryptomarket capitalization. Screenshot from www.coinmarketcap.com (22nd January 2018)

This, by all standards and in comparison to the global financial market, is still extremely young since the price of Bitcoin and other cryptocurrencies depends primarily on adoption AND the respective marketcaps and token supply/demand. Specifically the veracity of this line of thought is clear when one establishes that if the availability/supply of a particular asset remains relatively fixed and its marketcap increases a lot more significantly then this automatically means there is or will be a corresponding increase in price. To bring this view point into context, IF (a big IF) all the value in the global market (all $80 trillion) were to be diverted into bitcoin and IF all potentially mineable 21 million coins had been mined, the price of one bitcoin would be a whopping $3,809,523.81 BUT this cannot happen, ever. This analysis is only required to give an insight into how much bitcoin could be if it were to overtake all global currencies. Some estimates have put the maximum possible price per bitcoin to be $1million. This is a good and realistic long term price estimate. Today one bitcoin is worth about $10,000 although it recently hit an all-time high of $19,800.

Bitcoin price graph showing ATH attained before writing this reportThe concept stressed in this section above is the effect of the movement of funds from one financial ecosystem to another. Factors that cause this movement need to be analyzed.

  1. The most significant of this is the ADOPTION of Distributed Ledger Technology (“DLT”). This is synonymous with real life projects and use-cases. The more a specific DLT is adopted the more there is usage for the associated digital token associated with the chain, if there is any. The different DLTs (Blockchain [bitcoin], Ethereum [Ether], Waves [waves token], NEO [Neo] etc.) are gaining wider adoption due to the ever increasing use-cases from the numerous digital assets built onto these DLTs.
  2. Price Speculation: Many cryptocurrencies are purchased simply because the buyers expect someone else to buy the tokens back from them at a higher price. The anticipated higher price can be achieved on two fronts;
    • Adoption of the DLT and its token. Thus is project based and is an approach more common with mid and long term investors.
    • Artificially created demand (HYPE). This is more common with speculators and opportunists.

 


Trends

The Crypto-community is very much closely knitted together in the sense that factors that affect and dictate the overall market sentiments affect the entire space within a very short time. For instance news headlines can have devastating effects within minutes on the price/demand for a particular digital asset. Big players in the space known as “whales” can control and catalyze positive or negative sentiments from little or no news/headline. This is not uncommon to the stock exchanges world over. It is in this regard that this report seeks to highlight several factors that will determine the outlook of the cryptomarket for the year 2018 and beyond. These factors will be related to mass adoption of the DLT in the following areas:

  • Transaction anonymity
  • Supply Chain Management
  • Digital Identity management and protection
  • Low or zero transaction fees
  • Decentralization of exchanges
  • IOT, Distributed Applications, Decentralized cloud computing and data storage
  • Smart contact improvements
  • Civil security, defense and aviation
  • Medicals
  • Banking the unbanked, un-banking the banked
  • Aviation safety
  • Shared economy

Decentralized tokens, Exchanges and platforms: The aim of the Blockchain is to decentralize Digital Ledger Systems and Services. Any attempt to maintain a centralized setup of these DLT tools and systems will counter the aim of Blockchain itself. Recently there have been raid on exchanges and this is possible due to the non-decentralized nature they currently adopt. This brings to light the need for decentralized exchanges and platforms. These decentralized platforms will undoubtedly receive massive followings and adoption in the coming weeks and months. Any token attached to these platforms will experience significant adoption and price appreciation as a result. Most notable are districtOx (DNT) and Ethereum Classic (ETC).

Transaction Anonymity will be a major factor going forward as Regulations and Policies are being drafted to keep the cryptomarket under control and Regulatory oversight. Regulations would normally be viewed as a positive point for any sector BUT crypto-world caught on primarily because it was viewed as financial revolution against the traditional financial system and in particular the Federal Reserve. It is extremely famous and adopted mostly amongst revolutionaries who will push any agenda to break government control. This point will be a vital point to note in the coming years as regulations are slowly catching up with crypto. In this vein several assets are being highlighted in this report for mass adoption and significant price gains in the year 2018 and beyond until a significant shift is experienced. These tokens are:

  • Veros (VRS)
  • Linda (LINDA)
  • CybCSec (XCS)
  • DigitalNote (XDN)
  • GeyserCoin (GSR)
  • Verge (XVG)
  • ZClassic (ZCL)
  • Zcash (ZEC)

In the same line of thought as the foregoing, Digital Identity Management and Protection will also see major adoption due to impending Regulation and Policies by Governments and Financial Regulatory bodies looking to introduce control measures into cryptomarkets. Key tokens identified within this area are Civic (CVC), Metaverse ETP (ETP) and Factom (FCT).

Another sector to experience significant adoption of digital assets and technology is Supply Chain management. Over $4 trillion worth of goods are shipped annually and logistics costs are estimated at one-fifth of the transportation costs. By reducing barriers within the international supply chain, global trade could increase by nearly 15 percent, boosting economies and creating jobs according to The World Economic Forum. Cross-border supply chain management solutions have been in the works by Maersk and IBM. And it is in this regard that this sector is expected to experience significant growth going forward. Token Modum (MOD) is being highlighted in this report for significant adoption by players in this space even though IBM and Maersk have not specified any particular coin of preference. In a similar fashion and under this category are tokens developed for business enterprises. These are SophiaTX (SPHTX), Qtum (QTUM). Business enterprise Adoption of tailored blockchain solutions should gain solid traction within the coming months and years.

The issue of High Transaction Fees and slow speeds is a critical topic in the space. Coins like Bitcoin Cash use this selling point to attempt to out-stage bitcoin since it is the result of the fork of the bitcoin chain. This is the number selling point for the promoters of the coin to the extent that it is being claimed to be the “original bitcoin”. This has caused some confusion in the space especially amongst new participants. Many coins claim to have low transaction fees and many do actually have low transaction fees. In this section we have selected notable coins with low and or zero transaction fees that will catch on quick before year end. Some of these coins stems from forks of the original bitcoin chain and some are, in every sense of the word, technologically more advanced than bitcoin itself:

  • BitBean (BITB)
  • LiteCoin Ultra (LTCU)
  • Enigma (ENG)
  • SpreadCoin (SPR)
  • UnbreakableCoin (UNB)
  • Denarius (DNR)
  • Litecoin (LTC)
  • Ignition (IC)
  • Bitcoin Atom [Futures] (BCA)
  • Lightning Bitcoin [Futures] (LBTC)
  • United Bitcoin (UBTC)
  • DigiByte (DGB)
  • Electra (ECA)

Banking the unbanked (and unbanking the banked): The percentage of the world’s population without access to banking facilities is a market waiting to be harnessed and served. The World Bank estimates that there are 2 billion people in the world without access to banking facilities and majority are in sub-Saharan Africa as well Asia. Remittances and P2P services are expected to fill the void. Other services poised to provide serviced in this space are token and platforms which dependent solely on the traditional telecom infrastructures. Potential coins in this sector are:

  • Metal (MTL)
  • Humaniq (HMQ)
  • OmiseGO (OMG)
  • Telcoin (TEL)
  • QLINK (QLC)

Internet of Things needs Big Data and big data requires and exponentially high computing power and data storage with preference to decentralized set ups. This is the rationale behind the selection of the following tokens with high expectations for major adoption in 2018:

  • iExec RLC (RLC)
  • aelf (ELF)
  • Tierion (TNT)
  • HempCoin (THC)
  • Storj (STORJ)
  • DeepBrain Chain (DBC)
  • Datum (DAT)
  • OKCash (OK)
  • Walton (WTC)
  • Internet of People (IOP)
  • EOS (EOS)

Smart Contracts and ECR20 tokens are the next phase of the blockchain revolution. Several DLT solutions and tokens have been developed for usage and implementation in this area. The key focus is improvement in the traditional everyday business execution. Tokens under this section are:

  • Quantstamp (QSP)
  • Agrello (DLT)
  • Crystal Clear (CCT)
  • 0x (ZRX)

As Internet of Things gains momentum it is expected that the medical sector will also be redesigned to work seamlessly with the systems. Equipment will need to be inter-connected; medical data will require security and safe keeping. Several token currently exist in the space and I reckon they will catch on with the trend within months. Notable ones are:

  • Patientory (PTOY)
  • AI Doctor (AIDOC)
  • MediBloc (MED)

Military grade cryptography for security and aviation safety will definitely be a talking point very soon. Security worldwide has never been a hotter topic that currently is particularly with the threat of war (nuclear) every now and again from “Rocketman” and “Stable Genius”. Without a doubt these coins will provide some much needed (and soon to be adopted) security solutions as IOT becomes mainstream in the volatile environment the world is at the moment:

  • Burst (BURST)
  • Triggers (TRIG)
  • Aeron (ARN)

2018 Investments

From the foregoing section several tokens have been selected for high rate of adoption in the coming months and years. It will be a prudent financial decision to select from the list and invest some funds. This section will further trim the list down to the digital assets with the highest Return On Investment for a 8 to 12 months period. The aim of this entire report is to target between x10 and x100 profit levels on all proposed investment. This section will analyze the list of 5 coins and provide a realistic end-of-tenure price for each.
The foregoing section has a total of 54 digital assets. All the above will do really well in the coming months. A more specific list of ten (10) assets for possible investment gains of between 1000% and 10000% will be provided and will be low priced, will have low marketcap and will have the following features i.e. fall into one or more classes below:

  1. Smart Contract enabled Anonymous coins
  2. IOT ready, Cloud computing and secured Data Storage capabilities
  3. Business Enterprise related digital assets
  4. Safety and security

The final list and the expected gains will be posted shortly.


Disclaimer: Please ensure to do your own research before trading any cryptocurrency. The above article is the author’s person view and should not be taken as trading advice. Price projections contained therein are intended for informational purposes only and should not to be taken as investment advice.

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