If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　2017 is a breakthrough year for major bitcoin markets such as Bitcoin , Ethereum, and Ripple. The mainstream market is increasingly aware of the importance of digital currencies, and the innovative application of blockchain technology has also brought rich returns. Let's follow the mobile phone portable editor to learn about the relevant content.

　　More importantly, the rapid development of this entire ecosystem is driven by growing investor enthusiasm, which shows no signs of abating.

　　The rapid development of the crypto market over the past year has not been without its share of obstacles and skepticism.

　　For many, the current craze over cryptocurrencies is like the heyday of the dot-com bubble in the late 1990s.

　　Trading volatility over the past few months has not supported the views of those who are optimistic.

　　Bitcoin’s plunge of nearly half in a single day is not the only similar event, proving that huge price swings remain a major problem and that the market is highly volatile.

　　Others, however, counter that even if the industry faces a bubble, it could develop into a more mature and innovative market.

　　David Stockman, Ronald Reagan's former director of the Office of Management, said:

　　"This is just a game played by some stupid speculators who believe that trees can grow to the sky, but in fact it only takes one big accident to burn everything down. Only then will they learn their lesson after their strength is greatly reduced."

　　Observers believe that as the weak are eliminated, the industry will stabilize and continue to expand at a more measured pace.

　　Jeffrey Kleintop, chief financial strategist at Charles Schwab, said:

　　“Bitcoin is different from previous bubbles. Even if it suddenly plummets, it will not affect other things because it is independent of the financial system. It has not yet been integrated into the economic and financial structure.”

　　Even so, the debate is not entirely black and white.

　　The cryptocurrency ecosystem has shown disproportionate valuations for companies with no actual products, a worryingly rapid growth in new ICOs, and a market rife with scams and failures, but also signs of a more stable future.

　　Marianne Lake, Chief Financial Officer of JPMorgan Chase, said:

　　“We are very open to potential use cases for digital currencies in the future, which will be appropriately controlled and regulated.”

　　Major currencies like Bitcoin and Ethereum are slowly entering the financial mainstream as traditional exchanges increasingly offer related tools and merchants begin to accept more cryptocurrencies as a payment method.

　　Yet, the question remains: Will the crypto market collapse or eventually mature?

　　Behind the industry boom

　　There are several signs that the crypto ecosystem may be in the midst of a massive bubble. The situation has been repeatedly compared to the dot-com bubble, and in some cases, the similarities are stark.

　　Spurred by a new, potentially revolutionary technology, investors poured millions of dollars into companies that made wild promises but delivered little to nothing of substance.

 If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　The rise of the internet in the 1990s produced the dot-com bubble, while the current market frenzy is based on blockchain, which is the architecture of most cryptocurrencies.

　　Despite wild volatility over the past few months, swinging between $700 billion and $800 billion, the cryptocurrency market cap is still approaching the $1 trillion mark.

 If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　Furthermore, the current boom in cryptocurrency valuations is largely driven by a completely unregulated ecosystem.

　　This makes the market look very shiny, even if some of the actual applications are quite questionable.

　　This is evident in many blockchain-based companies.

　　In the second quarter of 2017 alone, ICOs raised nearly $800 million in funding, including $1.3 billion in the first six months.

　　Generally speaking, the largest cryptocurrencies have reached valuations that people wouldn’t even have considered a year ago.

　　The price of bitcoin, the world's largest cryptocurrency by market value, has surged more than 17-fold in the past 12 months, from just over $800 to nearly $20,000 before stabilizing.

　　Bitcoin Cash, Litecoin, and Ethereum have all seen similar trajectories in 2017, and there are signs that it will continue to grow.

　　The signs of a bubble are there, and the current boom appears unsustainable.

　　However, the truth may be slightly different for a variety of reasons.

　　The recent sharp swings in the sector’s share prices after South Korea announced a cryptocurrency trading ban triggered a plunge in the sector’s share prices, demonstrating that the sector is susceptible to large-scale volatility.

 If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　Even so, temporary declines have been corrected upwards over the past few months, showing the market's staying power.

　　A more mature crypto market

　　Despite growing concerns that cryptocurrencies are a bubble, the crypto market has actually been moving towards maturity.

　　First, governments are beginning to recognize the potential of cryptocurrencies and, in some ways, embrace them. Japan recognized Bitcoin as a legal payment method in 2017 and has allowed several cryptocurrency exchanges to operate within its borders.

　　Russia announced plans to create its own cryptocurrency, the “CryptoRuble,” and even Venezuela announced plans to launch its own currency.

　　Other companies have begun to regulate crypto markets, raising hopes that increased stability will lead to greater adoption.

　　The European Union and some Asian countries have introduced new laws to bring some order to the market.

　　Even in the United States, major exchanges have begun offering Bitcoin futures as a tool to attract more institutional investment participation.

　　Dennis Gartman, editor, economist and commodities analyst at Gartman, said:

　　“Cryptocurrencies are gaining some sense of legitimacy through Cboe.”

　　“When crypto holders start paying taxes, when crypto is no longer a way to avoid taxes, when it’s no longer a place for drug dealers to do their underground business, then I’ll be interested.”

　　More importantly, however, businesses and entrepreneurs have embraced blockchain technology as a cornerstone of this market, creating a thriving ecosystem of applications and services.

　　Businesses are looking for better ways to leverage blockchain’s capabilities rather than relying on speculative gains in cryptocurrencies.

　　Several companies have already launched solutions that could improve some traditional business activities, from creating better agreements - companies like Jincor offer simple smart contract customization - to giving consumers better access to services such as financing and cloud storage.

　　Blockchain startups like Cryptopay are leveraging cryptocurrencies to facilitate payments, while companies like SelfKey are focused on creating better forms of identification for individuals.

　　Additionally, in the financial sector, businesses like Legolas are improving wealth management and investment platforms.

　　These applications are rapidly becoming popular, and new companies are looking for ways to migrate their services to this architecture.

　　However, many people have natural barriers to entering this system because blockchain technology requires the development of new technologies and the recruitment of new personnel.

　　Currently, most companies still rely on Ethereum’s ERC-20 protocol and smart contracts to build new applications, but this model is still developing.

　　However, some companies have discovered better ways to develop blockchain-based applications.

　　This nascent industry is already showing promise, and new applications are further expanding the ecosystem.

　　For example, Qtum provides developers with a hybrid infrastructure for building blockchain applications that are suitable for major blockchain operations while also being compatible with mobile and IoT services.

　　The company’s dual architecture is based on Bitcoin Core and the Ethereum Virtual Machine, allowing for the use of smart contracts across platforms.

　　The end result is a lightweight product whose cross-chain capabilities exceed those of Ethereum while expanding the appeal of blockchain.

　　The company showed great potential for growth, attracting the attention of investors and achieving a valuation increase of nearly 200% in December 2017.

 If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　Most importantly, however, cryptocurrencies are starting to find real use cases.

　　Ripple has successfully carved out a niche in transactions between banks and businesses.

　　Bitcoin Cash promises to address many of Bitcoin’s shortcomings as a payment method, namely scaling and faster transactions.

　　Meanwhile, Ethereum has proven its worth as infrastructure for application development.

　　Even amid high volatility in the cryptocurrency market, the overall trend in 2017 was overwhelmingly positive.

　　As the industry becomes more widely accepted, it will help stabilize recent volatility significantly.

　　2018 is more promising

　　Amid signs that the cryptocurrency market remains volatile, including sky-high valuations and rapid growth rates, 2017 ended on a strong note, despite similarities to past manias.

　　However, the success of cryptocurrencies in the next year will rely heavily on whether they can achieve wider adoption and become a market that can withstand the wave of speculation.

　　If Bitcoin’s valuation remains highly volatile, investors and exchanges will eventually be scared off and trading could decline.

　　The recent wild swings in the market have highlighted how precarious the current boom is.

 If Bitcoin cannot be quickly integrated into the market, it may be eliminated

　　Chart showing Bitcoin price action since 2013. 2018 promises to be a momentous year for the industry.

　　Despite growing concerns about a bubble burst, many are viewing the event with optimism.

　　In their view, the ecosystem is ripe for consolidation, removing unqualified players and unsustainable projects, which will allow truly good projects and good companies to grow.

　　Additionally, a wave of mergers and institutional investment into the space could lead to wider adoption and a more stable market.

　　Although the crypto market is growing, it must demonstrate sustainability and provide better fungibility.

　　As more companies implement effective applications of cryptocurrency and blockchain technology, the entire ecosystem should continue to stabilize and expand as awareness of its inherent benefits improves.

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