Cryptocurrencies (aka, the future of global payments and remittances) have come a long way from their not-so-humble beginnings. They’ve gone from possible disruptors to full-fledged payment solutions with increasing global acceptance and adoption rates. Hype and fanfare aside, what exactly is their value proposition and how do they fit into the global picture in the years to come?

 2018: Another Crypto Year

In 2017, we saw the cryptocurrency market hit an all-time market valuation of over $600 billion, and while that certainly beats every stroke of the imagination, expect more of the same in 2018. Cryptocurrencies have proved to be a revolutionary asset class, and you can expect a horde of organizations — including top brands, government and business agencies from the world over — to enter into the crypto scene in 2018. As was in the past, increased interest in the cryptocurrency market seems to translate to increased gains. For example, look when CBOE and CME launched bitcoin futures — a development that catapulted the short-term market capitalization of the popular cryptocurrency Bitcoin.

With the increased worldwide interest also comes the dreaded regulation. 2018 will be the year government agencies try to enforce traditional security laws on the cryptocurrency market. Recent SEC clampdowns seem to bolster this point.

 The Market Might Experience Some Regression

The inherent shortcomings of cryptocurrencies — their volatility, susceptibility to end-user intrusion and HYIP-like mode of operations — might lay the foundation for distrust in the market. Hackers have already stolen millions of dollars in Bitcoin — a reality that might spook fear and uncertainty in the cryptocurrency market. This fear might be further escalated when more governments (as we’ve already seen in countries like China and Bolivia) issue blanket bans on certain aspects of the market.

On the brighter side, 2018 may, however, be the year blockchain technology increases its reach in terms of market penetration. Blockchain technology can provide privacy, security and secure online services, among other IT solutions. The market has demonstrated its high interest in this new technology. The company previously known as Long Island Iced Tea Corp. is an example of the influence that blockchain and cryptocurrencies have. After the company announced it would rebrand itself and change its name to Long Blockchain Corp., its shares spiked as much as 500% before finally settling at a modest 275% gain.

The appeal of blockchain technology and the hype surrounding blockchain-crypto tech is evident: the current number of cryptocurrencies is 1,545, and that number continues to grow. Technology entrepreneurs can benefit from this crypto interest in multiple ways, including using a new avenue for raising capital and completing transactions that bypass a centralized authority. In 2014, Overstock.com became the first major online retail company to accept Bitcoin, and other companies have followed suit.