Although it’s not possible to predict the future prospects of all of the cryptocurrencies, if the success of Bitcoin is any indication, the cryptocurrency market has a bright future.
— In July 2015, the price of Bitcoin was just over $280; this gradually increased until it reached the $1,000 mark in January 2017.
— Since then, the cryptocurrency has recorded phenomenal growth. By early December 2017 the price of Bitcoin had reached $17,000. The price of another cryptocurrency called ‘Ether’ has also continued to rise in recent months.
Initial Coin Offerings (ICOs) have also played a major role in generating interest in the cryptocurrency market. ICOs use coins or tokens that are similar to shares of a company. These are sold to investors in an initial public offering (IPO) transaction. An ICO can be likened to crowdfunding, using cryptocurrencies as a source of capital for startup companies. Many market experts expect a cryptocurrency crash at some point. With this kind of market volatility, it is inevitable that a regulator like the SEC will want to step in to provide guidance and impose enforcement actions where necessary. We’ll learn more about ICO’s later in this guide.