Trend 1: Bitcoin’s “dominance” will be further enhanced
The bitcoin price has surged 10% over the past 2 days, due to the crypto market adds $ 20 Billion in 30 minutes. Some people have analyzed that there are many reasons for the rebound in bitcoin prices.
First of all, Bitcoin mining difficulty has dropped, from the previous 5.36 T to 5.23 T, which is considered to be a recent super big profit. This positive has prompted a small rebound in BTC in the short term. Moreover, the end of the World Cup and the gambling funds are returned. Meanwhile, the preparation of ETF (Exchange Traded Fund) is also good news. As Arthur Hayes, the Co-Founder and CEO of BitMEX (the world’s largest cryptocurrency exchange by volume) noted that:“the ETF will bring real money to the table, as primary dealers have to go and get inventory, and there will be subscriptions for real money to buy the asset.”
Although the volatility of the bitcoin price is high, bitcoin price is actually more stable than other cryptocurrencies.
According to a study by the BlackRock Investment Institute, bitcoin is much less volatile than the other two most popular cryptocurrencies on the market, Ethereum and Ripple.
With the continuous development of Segregated Witness (SegWit) and Lightning Networks, the scalability problem that plagues Bitcoin is being addressed. Indeed approximatively 42% of Bitcoin transactions are done with SegWit.
Nowadays, one of the biggest threats affecting Bitcoin's dominance is probably its scalability and the centralization of the mining power. Since the amount of transactions supported per second is very limited estimated to 7, when the number of people using the Bitcoin network increases, the issue of Bitcoin scalability erupts, causing the entire network to be in trouble. However, Bitcoin has begun to address these issues using lightning network.
Image source: cointelegraph Trend 2: The more stable coins, the more stable the market will be.
At the beginning of January this year, the market value of cryptocurrency hit a record high of $850 billion, but by the beginning of July it had fallen to about $260 billion.
Of all the stable currencies, the most notable is Tether – most cryptocurrency exchanges now match Tether's USDT with mainstream cryptocurrencies and some altcoins (copycat coins) because USDT and USD are 1:1.
According to CoinMarketCap, Tether's trading volume is ranking ten among all cryptocurrencies. However, critics — some anonymous, some not — believe that the token is not fully-backed by USD and that its issuers have frequently used unbacked tethers to manipulate the bitcoin price. But the good news is that the market is introducing more and more stable coins, such as TUSD, DAI, BitUSD, etc. On one hand, reducing the dependence on Tether, on the other hand will undoubtedly further improve market stability.
Trend 3: The rise of decentralized exchange.
The mainstream cryptocurrency exchange is actively promoting decentralized exchanges. Huobi recently announced plans to invest $100 million to build its own decentralized exchange; Binance also recently announced the development of its own decentralized exchange project - "Binance Chain".
In the near future, exchanges will be more and more decentralized. Although many industry experts speculate that decentralized exchanges are not ready to be used by more people, in fact, the rise of decentralized transactions is faster than expected.
Check also our previous blogs:
The 3 Challenges Bitcoin Mining Are Facing With In 2018
ICO Supervison Is Still In The Era Of Grassroots
June 2018 News Blockchain review
Blockchain community are dealing with big security challenges