The new year did not start with a BANG! Infact, many pundits have continued to stay quiet after Bitcoin failed to hit their price predictions. Well, it’s not that hedge funds have been doing well anyway. Most major stocks (Facebook, Amazon, Netflix, Google), and even the stock market had dropped significantly when compared to the start of 2018.
As we welcome 2019, many bitcoiners and crypto fans are beginning to wonder, will we ever recover from the current lows? Initial Coin Offerings (ICOs) are all but dead, and even the rumours of it being replaced by Securities Token Offerings (STOs), have not really panned out just yet. Indeed, venture capital funds are becoming sexy again, as more funds are piled into relatively unknown startups around the world.
Why is Ethereum up?
It all finally boils down to progress. EOS (the rumoured Ethereum killer) which was in 2018 the sexiest crypto project, suddenly fell silent. Ethereum, on the other hand, has been very hard at work. While it might be argued that the advanced functionalities the Ethereum team wants to have built is virtually improbable, many still think is a step in the right direction. Also, at least it survived 2018. Can’t say the same for thousands of coins out there.
After all, 2017/2018 has been quite a year of bullshit for ICO projects. By now, at least 90% of the projects have gone bust, and out of business. The funds have evaporated or massive fraud has been committed; so much so that experts are predicting that with the massive wave of layoffs in the crypto industry, many of these staff/victims will turn into whistleblowers. Will this finally set a right tone for the industry, which so far has been rife in scams, lies and little progress in adoption (and development)?
More funds coming in
If you haven’t read our predictions for 2019, we actually predicted that traditional VCs would begin to invest heavily into crypto-based businesses. This, we think will be proven true more and more; as we saw BAKKT receiving the US$182 million in funding (to run an exchange?)
These VCs know there’s tonnes of money to make in this industry. Soon, we will see more and more businesses (even in the Technology space) either adopting blockchain or going out of business because of it. So, get ready for it.
Back to Ethereum – last year, we issued a prediction that Ethereum might hit US$800. We think it is very probable if funds keep pouring into this space. After all, if Bitcoin’s the gold standard, Ethereum can easily be the silver standard? Also, if there’s anything we learnt in 2018, achieving progress and surviving are the only factors that are keeping any token alive – without a doubt.
Cover photo by: Forbes