It’s easy to think that Bitcoin is failing and that its future is uncertain when its price drops. Price volatility causes doubt and overall loss of faith in the market. Buyers in turn fear an impending collapse and stop buying; all this leads to low demand and low prices. However, the reality is the complete opposite of this. Cryptocurrency innovation and investment is at a all time high. Venture capital money is funding almost every major crypto-related project coming on the market. And the latter part of 2018 is likely to see a boost in investment, implementation, and adoption of Cryptocurrencies projects.
According to Coindesk, ICO funding is 118% higher in the first quarter of 2018 than the total of 2017. The volume of investment is compounded by rising interest of central governments who see crypto currencies as an opportunity to advance technology and business development. This interest is leading governments to co-finance a number of start-up projects. For example, in April 2018, the Chinese venture capital firm Tunlan investment launched a $1.6 billion fund for a national blockchain; 30% of the fund was backed by the Chinese government. In France, a new project called Neurochain is also receiving support from the French governement. And in February 2018 the European commission invested more than 80 million Euros in blockchain-based projects. With 300 more allocated by 2020.
The complexity and ambition of some projects has delayed their realization. Projects like IOTA, Cardano, and Maker have lofty goals requiring years, if not decades of research and testing. However, the more business-oriented enterprises like EOS and Ethos are advancing rapidly and their release is within sight. Both these projects for example, have released beta versions of their main nets, wallets, and interfaces onto controlled test groups. Once introduction of these projects commence, the crypto industry will have something more tangible to offer than a ton of whitepapers. Both EOS and Ethos plant to release their initial platforms in late 2018.
Consumer and business acceptance of Cryptocurrencies is dependent on ease of use. Being a new and disruptive technology, Bitcoin and altcoins face stuff resistance from industries they look to replace. Neverhteless, digital currency will inevitably replace fiat money simply because the integration of robotics and artificial intelligence require a digital medium of value to transact with each other. As universal crypto wallets become commonplace, they will simplify the storage of coins. As exchanges become decentralized, fees will go down and buying cryptocurrency will be affordable. And finally, as platforms like Bitcoin, Ethereum, and Stellar achieve scalability, new Daaps will function at full capacity offering a full range of services and capabilities.
One last hurdle all Cryptocurrencies face is regulation. However, despite the scrutiny from the U.S. Securities Exchange Commission (SCE), institutional investors continue to fund new projects. The crypto industry offers unmatched potential for profits and growth. This is reflected in the fact that CEOs from major corporations are leaving their positions and joining others to initiate their own cryptocurrency start-ups/companies. All of this is an indication that regardless of current market prices, Bitcoin still has a promising future and demand will create a resurgence of prices to prior peak levels or higher.