Most emerging #markets and technologies tend to move by cycles and are minimally impacted by specific #catalysts.
As such, the crypto #market tends to be unaffected by most industry #developments and news because the value of digital assets mostly moves by #sentiment rather than short-term events.
In 2018, many emerging #markets in the likes of crypto, VR, augmented reality (AR), and artificial intelligence (AI) had a poor year in terms of #progress and market growth. It is #difficult for new technologies and markets to undergo massive #changes in the short to mid-term and investors become easily impatient.
#VR, #AR, #AI, and crypto also had explosive years prior to 2018, which led to an #increase in the value of digital assets and companies working in the four #sectors. But, the increase in the valuation of the markets failed to accurately represent their respective rate of #growth.
Professor Scott Galloway said:
VR and crypto go from bad to worse. #AI fails to live up to the hype. 3D printing rises from the ashes. #Smart cameras become a hot category.
3D printing had a particularly bad year in 2018 as leading #companies in the industry including 3D Systems suffered a massive #correction in 2014. Because new markets move by #cycles, Galloway suggested that the 3D printing market could become #revitalized in the upcoming months.
Crypto May Be Different
While the #assessment of Galloway is accurate, the crypto market could be an odd one out. Unlike other #struggling #industries, many large-scale financial institutions are committed to the #cryptocurrency sector.
#Fidelity, NYSE, ICE, and #Nasdaq are a few of many conglomerates that have funded 5 #projects in the #cryptocurrency space over the past several months to strengthen the infrastructure supporting the asset class.
In December, Jim Breyer, a billionaire #venture capitalist, said that the world’s best computer scientists are moving to the #blockchain industry and it would be risky to challenge smart talent flocking to #crypto.
“So many of the very best #computer scientists and deep learning Ph.D. students and postdocs are working on #blockchain because they have so much #fundamental interest in what blockchain can mean. You don’t want to bet against the best and brightest in the world,” Breyer said.
The #crypto market is expected to have a less volatile year in #2019 as most cryptocurrencies such as #Bitcoin approach the last leg of the bear market.
In the first two #quarters, cryptocurrencies could lose more of their value against the U.S. dollar, but if the past is any #indication, analysts suggest that the market may initiate a gradual #recovery phase in the latter half of 2019.