The Plausible Cryptocurrency Predictions That Make Sense for Late 2019

New cryptocurrency predictions and speculation are coming out all the time. While much of these predictions are baseless, a few of them are very likely to happen. In the following article, we’re going to highlight a few of the most plausible cryptocurrency predictions for 2020 and explain why they are so likely to happen.

Understanding Cryptocurrency Predictions

One of the first things that you have to realize about cryptocurrency is that it’s inherently unpredictable. Problems arise when predictions are made that are not based in facts. Forecasts in the cryptocurrency market are much harder to make than the traditional stock market because the history just isn’t there.

The traditional stock market has over 100 years of data to feed into predictive models. Some stock traders who are still working today have 60+ years of experience and have learned to spot a trend, this is not the case for the cryptocurrency market. The most experienced cryptocurrency trader could only have a maximum of 9 years experience in the field as of today. On top of that, the market today is unrecognizable to the one from the early years.

What does all of this mean for predictions? The lack of a plethora of historical data in the cryptocurrency market doesn’t mean that meaningful predictions cannot still be made. Most cryptocurrencies like Bitcoin behave in a similar way to commodities like Gold, this means you can learn a lot about Bitcoin by studying Gold. Creative prediction models can be created using hybridized approaches to data that take many more factors into account than just the cryptocurrency data set.

Watch out for hype:

If you have been involved in the cryptocurrency world for any period of time then you know how overblown hype can be. One of the problems with having such a small community is that it can be easily manipulated by influencers who have an audience. By “predicting” that the price of a coin will go up or down, they can create a self-fulfilling prophecy if enough people are listening to them.

Pricing is the most popular thing to be overhyped, so remember to be on the lookout. Anything you read prophesying a dramatic fall or rise in the price of a particular coin should be taken with a grain of salt.

Plausible Cryptocurrency Predictions for 2019

With most of the year still in front of us, there’s a lot that can happen in the world of cryptocurrency. Below we have listed and explained some of the most plausible predictions that have been made for this year.

Bitcoin ETFs Will Become Reality

In case you aren’t aware, an ETF (Exchange-Traded Fund) for Bitcoin would allow stakes in Bitcoin to be sold on the stock market. The way it would work is that a company would buy a large number of Bitcoins that they would hold in cold storage. An ETF would then be created to represent stakes in that amount of Bitcoins which would be sold on the stock exchange.

Many companies like Coinbase have bids for Bitcoin ETFs in the works and signs keep pointing towards one or more of them getting approved in 2019. A Bitcoin ETF approval would forever change the face of cryptocurrency. Beyond increasing the available investment dollars, an ETF would also legitimize Bitcoin in the eyes of the legacy stock market system. All of these things would lead to a greater interest in the community and grow the market.

Cryptocurrency Market Valuation Will Hit $1 Trillion

At first this might seem far fetched because it would mean more than doubling the current cryptocurrency market cap, but it is absolutely plausible. The all-time high for the cryptocurrency market-cap was $800 Billion in 2017, this means that it would only need a market increase of $200 Billion to break the Trillion dollar amount.

When you consider the massive expansion in cryptocurrency and blockchain infrastructure since 2017, this goal seems much more in reach. The technology of today is massively scalable and can easily support a Trillion dollar valuation, but this was not the case back in 2017. If a bull market starts again at any point this year this milestone will be sure to follow.

Security Token Offerings (STOs) Will Outpace IPOs

2017 was undoubtedly the year of the ICO. Massive investment during the bull market run of this time and low regulation led to an unprecedented amount of investment funds being given out to just about anyone with a whitepaper. That being said, between 2017 and 2018 around 50% of ICOs failed to raise funds. Many predictions are pointing to a loss of enthusiasm for ICOs coming into 2019. So, what will replace them?

A Security Token Offering or (STO) is an asset that is securitized through a “tokenization process”. STOs function very similarly to traditional securities in the sense that they are shares in a real-world project that can be sold and traded, but that’s where the similarities end. Tokens are much more liquid than security shares and can be sold in seconds if need be. The global nature of cryptocurrency exchanges also means that STOs are accessible to much many more people all over the world. These creative solutions will undoubtedly be the major market drivers in 2019.

Bringing It All Together

There is no question that 2019 will be a big year for crypto. While many predictions like a $50,000 Bitcoin by the end of the year may not be accurate, there are some that are more plausible. 2019 will be a year for ETFs, STOs, and significantly increased market valuation.