They appeared in 2009 through Bitcoin, changing economy as we know it. As the years passed, they diversified and grew in use and acceptance. Therefore, there are already several digital platforms that use them. Based on this premise, it’s worth observing how cryptocurrencies have evolved in 2018.

Evolution of cryptocurrencies in 2018

According to finance and economics company The Motley Fool, 2017 was a good year for cryptocurrency investors. Since these started with a market cap of just $17.7 million. And the aggregator value of each cryptocurrency ended up reaching $613 billion at the end of the year.

This is equal to a market cap growth of 3,300% according to the analysis of the aforementioned company. This undoubtedly gives a lot to think of to the members of the cryptocurrency community who actively invest in them. However, it should be noted that according to a CNBC report more than 800 cryptocurrencies have disappeared from circulation.

Types of cryptocurrencies
Today, there are hundreds of cryptocurrencies. Many of them ended up disappearing because they turned out to be scams, as was the case with GIZA Device.

Why has this happened? Experts agree that this is due to the abrupt growth of the Initial Coin Offerings (ICOs). Which is known as the process by which a new cryptocurrency is created by offering it to investors. The point is that the vast majority of these ICOs were of low quality, a scam or a fraud altogether.

Either way, the world’s companies managed to raise $3.8 billion in 2017 through the ICOs. And by July of this year that number increased to $11.9 billion. The most famous and currently used cryptocurrency is Bitcoin. Which is still in force and in circulation, although recently its price fell by 70% based on the issue of ICOs.

Regulation, prohibition and risks

One of the most talked about topics in the market of cryptocurrencies is the regulation they may face. Especially because they’re managed in a decentralized manner and there are no intermediaries such as governments, banks and financial institutions. For this reason, they’ve been banned in several countries of the world.

Again, according to The Motley Fool, these prohibitions and regulations could increase this year. Which obviously would cause many cryptocurrency-inclined retail investors to lose confidence in them. While the market for cryptocurrencies is in a swing, it doesn’t mean that there aren’t great opportunities.

cryptocurrencies usage worldwide
Cryptocurrencies have fostered the birth of various start-ups around the world. And as a benefit, they’re seen as a way to balance the global economy. Source: Cryptosis

According to the CoinMarketCap website, there are more than 1600 cryptocurrencies officially known to date. Of which about 500 of them enjoy a market capitalization greater than $10,000. Some experts believe that it’s only a matter of having an attentive eye and knowledge to invest wisely in cryptocurrencies.

Nowadays, since there are hundreds of ICOs that have risen and failed, it’s thought that many cryptocurrencies will end up merging. In fact, in January of this year there was a rumor that Monero and Litecoin, two known cryptocurrencies in their market, would make an agreement to merge. This agreement didn’t happen but it’s likely that some other one might occur in 2018.

The future of cryptocurrencies remains uncertain but the possibilities of investing in them remain valid. Let’s not forget that they’ve grown exorbitantly in just one year and it’s expected that many more companies and start-ups will report income thanks to them. However, it’s advisable to avoid investing in excess and keep the profits safeguarded.

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Where will the cryptocurrencies be at the end of 2018?