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Opinion
Aaron Brown

Crypto Fans Need to Monitor Four Key Developments

The real action in digital currencies in coming months isn’t likely to be in prices or user adoption, but in the plumbing.

Bitcoin and other cryptocurrencies are off to a lackluster start in 2019.

Bitcoin and other cryptocurrencies are off to a lackluster start in 2019.

Photographer: Bloomberg

The market for cryptocurrencies has gotten off to a lackluster start this year, with the Bloomberg Galaxy Crypto Index up just 3.50 percent through Monday, versus 11.5 percent for the S&P 500 Index. Four scheduled events in the rest of 2019 should help determine what comes next for digital currencies.

There are no shortage of naysayers doubting the future of Bitcoin and its peers, but transformational technologies never have smooths path to adoption. Mass acceptance of automobiles required investment in roads, service stations, assembly lines and oil drilling; and millions of individuals to pay for cars and learn to drive them; and legal and social changes. Ditto for telephones, personal computers, the Internet, smart phones and other major innovations. So adoption is characterized by bubbles, frenzies and crashes.