Top Cryptocurrency Trends to Watch Out for in 2020
The overall cryptocurrency market grew in valuation by three folds in 2019, with various sectors and governments all taking a keen interest in crypto development and opening up to its use for transactional purposes of their business. The skepticism attached to the use of crypto owing to its volatile nature subsided a lot compared to last year. Experts are of this belief that the upcoming year will open up more avenues for crypto adoption and investment.
Before we cross over to the New Year completing an exciting decade of technological advancements, here are the top crypto trends to look out for in the year 2020.
- Halving of Bitcoin: The halving of Bitcoin in 2020 in May, is going to be one of the most significant crypto events of 2020. The number of Bitcoins that are rewarded to a miner for successful block mining will be reduced to half. That means, what used to be 12.5 will be reduced to 6.25 Bitcoins. This is not the first time that the halving will happen. It has already happened before twice and both the times it had a significant effect on the overall market. The act of halving is done to stabilize the Bitcoins supply as it reached the point of saturation, with no more mineable Bitcoins. That can either make the world’s first cryptocurrency a rare and valuable asset or the price can be moderated by the creation of new Bitcoins.
- Domination of Stable Coins: People often back off from investing in crypto because of the price fluctuations. That’s why stable coins are emerging as a viable alternative as they are backed by fiat or other assets that prevent fluctuations of value. 2020 is expected to be a good year for stable coins with experts supposing that there will be an increase in investment in that area.
- Governments warming up to Cryptocurrencies: Blockchain and Cryptocurrency are getting significant attention in the public sector as well with governments gradually warming up to the use of crypto for transactions. Some are even working with their Central Banks to launch their national digital currency. Some of the new additions in this list include Venezuela and China. Hopefully, the list is going to grow in the New Year.
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- Crypto Inclination of Corporates: Multinationals are already making their move towards launching their crypto. Companies like Facebook and JPMorgan Chase have already announced their digital currencies which are Libra and JPM Coin respectively. It is expected that more corporates will put in the time and work towards their crypto in the coming year.
- The Role of Crypto Deepens in the Financial Ecosystem: Most of the key players in the Fintech and finance sector have entered the crypto-space in the last year. The list includes the NYSE owner and several global companies and enterprises. These companies have shown significant interest in cryptocurrencies such as proposing Bitcoin futures, custodian services, and various other options to investors and institutions. This has led to the once crypto-allergic institutional investors to invest substantially. Well known Crypto exchanges like PayBito, Gemini, and Kraken, etc. are also steering towards such investors.
Conclusion: Considering that the financial ecosystem is slowly integrating cryptocurrencies, with significant fast-paced developments in 2019, the trends that we mentioned in the write-up above maybe just the tip of the iceberg. There are other factors too that are expected to make noteworthy alterations in the sector such as regulatory compliances, new implementations, and use cases. But one thing is for sure that 2020 is sure to bring more excitement and novelty in the crypto-space. So, let’s brace ourselves for the future.