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2017 was a decisive year for the crypto-market of major pieces such as Bitcoin, Ethereum and Ripple, a heightened awareness of the consumer market and new innovative applications of Blockchain technology. More importantly, this frantic pace for the entire ecosystem is driven by a growing appetite from investors, with no sign of slowing down.

The speed at which the crypto-market has developed over the past year has not been without its hiccups and a good deal of skeptics. For many veterans, the current craze for cryptocourses looks like the craziness of the late '90s and the dot-com bubble dot-com

The volatility of trade during the last few months has not helped speculation. Whether Bitcoin has dropped nearly half of its value in a single day, or that it's not the only similar incident, proves that massive price fluctuations are still a major concern, and that the market is incredibly unstable. Others, however, believe that even if the industry were to face a bubble, this could lead to a more mature and innovative market.

David Stockman, Former Director of Ronald Reagan's Office of Management:

"This is basically a class of really stupid speculators who have convinced themselves that the trees are growing in the sky and that they will be consumed in a spectacular accident, and they will learn the right lesson. "

While the contenders are eliminated, the observers argue that the sector will stabilize and continue to expand at a more measured pace.

Jeffrey Kleintop, Chief Strategist Charles Schwab:

"… I think the Bitcoin bubble if you want to call it so, it's If Bitcoin's prices were to plummet suddenly, because it's so independent of the financial system, it's kind of its own thing.It's not even built into it yet. 39, Economics and Financial Structure. "

Still, the debate is not entirely black and white.The crypto ecosystem has shown signs of a bubble – disproportionate assessments for companies without real products, an alarming rate of new ICOs, an increasing number of scams and failed launches – but also showed signs of a more stable future.

Marianne Lake, Financial Director of JPMorgan:

"We are very open to the potential use of properly controlled and regulated digital currencies. "

Major plays such as Bitcoin and Ethereum are slowly entering the mainstream of finance as traditional scholarships offer more in addition to related instruments, and merchants are starting to accept more cryptocurrencies than payments. Nevertheless, the question remains valid: is crypto just booming or does it grow?

Emerging from the boom

Several elements indicate that the crypto ecosystem could be in the midst of a massive bubble. The situation has been compared several times to the Dot-com bubble, and in some cases the similarities are obvious. Driven by the excitement of a potentially revolutionary new technology, investors poured millions of dollars in funding to companies that were promising the sky but which largely failed to deliver anything.

<img alt=" The dot-com bubble "src =" https: //cointelegraph.com/storage/uploads/view/643248bf1c25af33e067676f16d98852.png "title =" The dot-com bubble "/>

The dot-com bubble [Image: Business Insider]

The 90s were about the Internet boom, and the market current is based on Blockchain, the architecture underlying most cryptocurrencies. The market capitalization of cryptocurrencies continues to approach the $ 1 mark, despite the wild fluctuations that pushed it between 700 and $ 800 billion over the last few months.

<img alt=" Coinmarketcap "src =" https://cointelegraph.com/storage/uploads/view/2e2dca44802d76d717ae7f4fffead387.png "title =" Coinmarketcap "/>

Image: Coinmarketcap

Moreover, the current boom of the val Cryptographic orations was fed largely by a completely unregulated ecosystem. It seems to reward the most egregious assets, even when their practical applications may be questionable at best. It's clear in the disproportionate capital that many companies based on Blockchain have raised. In the second quarter of 2017 alone, ICOs raised nearly $ 800 million in funding, with the first six months generating $ 1.3 billion in capital.

Individually, the largest crypto-currencies have all reached valuations that have not even been considered since. Bitcoin, the first and largest market-cap cryptocurrency, has climbed more than 1,700% over the last 12 months, climbing from just over $ 800 to nearly $ 20,000 before its peak. Install lower

Bitcoin Cash, Litecoin and Ethereum similar trajectories in 2017, and indications indicate continued growth. The signs of a bubble are there, and this current boom seems unsustainable. However, the reality may turn out slightly different, for various reasons. The recent widespread volatility, driven by a collapse in Ripple's valuation following South Korea's announcement of a cryptocurrency trading ban, shows that the industry is prone to massive fluctuations

<img alt=" Ripple Charts "src =" https: //cointelegraph.com/storage/uploads/view/476dbed73304268c1594aedf5c401145.png "title =" Tables of Ripples "/>

Image: Coinmarketcap

Nevertheless, declines have been historically followed by upward corrections in recent months, showing the market's endurance

A crypto market more mature

Even if the cries of a bubble become stronger, Indeed, the crypto-Japanese government has recognized Bitcoin as a legal means of payment in 2017 and certified several cryptocurrency exchanges for op within its borders. Russia has announced its intention to create its own cryptocurrency, the CryptoRuble, and even Venezuela has announced its intention to launch its own currency

Others have begun to regulate the crypto-market. The EU and several Asian countries have enacted new laws to bring order to the market. Even in the United States, major stock exchanges began to offer Bitcoin futures as tools for more institutional investment participation

Dennis Gartman, Economist and Product Analyst, The Gartman Letter editor:

[cryptocurrency] gains some sense of legitimacy by the Cboe. … When they [cryptocurrencies holders] start paying taxes, when it stops being an avenue to avoid taxes, when it stops being a place where drug traffickers negotiate and make transactions, so I'll be interested.

Most importantly, however, companies and entrepreneurs have adopted Blockchain, the underlying technology of the market, creating a thriving ecosystem .. applications and services

Companies find better ways to use Blockchain's capabilities, instead of relying on the speculative gains of cryptocurrencies.Several companies have introduced solutions that enhance many traditional activities, since the creation of better agreements – from companies such as Jincor, which offers the creation of simple smart contracts – to better access to services like finance and cloud storage Blockchain startups like Cryptopay facilitate payments with cryptocurrencies, while others like SelfKey focus on creating better forms of identification for individuals, and in the financial field , companies like Legolas are improving their wealth management and investment platforms.

These applications are rapidly gaining popularity and new companies are finding different ways to migrate their services to this architecture. However, many have natural barriers, Blockchain requires a new cycle of development and hiring.

Currently, most companies still rely on Ethereum's ERC-20 protocol and smart contracts to build new applications. -heavy. Instead, some companies have already shown better ways to develop blockchain-based applications.

This nascent sector has already shown promise, and new applications are further expanding the ecosystem. Qtum, for example, provides a hybrid infrastructure for developers to build blockchain applications that work well with major blockchains, while being compatible with mobile and IoT services. The company's dual architecture is based on Bitcoin Core and Ethereum Virtual Machine to enable the use of intelligent contracts between platforms. The end product is a lighter product with a cross-string feature that surpasses Ethereum's capabilities while expanding the appeal of Blockchain. The company has shown significant promise and has attracted the attention of investors, rewarding the valuation with a jump of almost 200% in December 2017.

<img alt=" Qtum Charts "src =" https: //cointelegraph.com/storage/uploads/view/de8a0e09ced35c6e32d9a17d29701dc9.png "title =" Qtum Charts "/>

Image: Coinmarketcap

] Most importantly, however, cryptocurrencies Ripple has managed to carve out a place in banking and B2B Bitcoin Cash promises to solve many of the shortcomings of Bitcoin as a method of payment, namely the scalability and speed of transactions .. has proven itself as an infrastructure for the development of applications

Despite the high volatility of the cryptocurrency market, the general trend in 2017 has been extremely positive.

2018 Could Be Promising

There are signs that the cryptography market is still rather unstable, including very high valuations and a rapid pace of growth that has rivaled the hype of the past, but 2017 has closed again on a strong note.

However, success in the next year will depend heavily on wider adoption. And a market that can withstand the waves of speculation. If Bitcoin valuations remain highly volatile, investors and exchanges will eventually be frightened, and trading may decline. The recent extreme movements observed by the market in general highlight the precariousness of the current boom.

<img alt=" Bitcoin Charts "src =" https://cointelegraph.com/storage/uploads/view/30a55888fc813126271bda35febb3f.png "title =" Bitcoin Graphics "/>

Chart showing the movement of Bitcoin prices since 2013

2018 promises to be a memorable year for the While fears of a collapse of bubbles rise, many look at it with optimism: in their eyes, the ecosystem is ripe for cleanup, and the elimination of underperformance and unsustainable projects could allow real competitors to develop. Institutional investment in the sphere could lead to wider adoption and a more stable market.

Although the crypto market is growing, it needs to demonstrate sustainability and offer better fungibility. Blockch technology In this way, the global ecosystem should continue to stabilize and expand as awareness of its inherent benefits improves.