The global crypto market did pretty well in 2019. In that year, there were brilliant trading solutions, new groupings and many blockchain protocols emerging and maturing. The Blockchain and crypto market was slowly picking momentum.
In 2020 you should expect to see some significant developments. The growth of the Cryptocurrencies will continue from where it left off in 2019. In this article, we talk about the trends in cryptocurrency market you should watch out for.
To learn more about cryptocurrency in general, including the basics like what does hodl mean, check out this explanation on Crypto Head. To learn more about the trends that will dominate the market in 2020, read on...
Digital Currencies for Nation-States
In 2019, there were signs that countries were in the process of developing their own digital currencies. We project this trend will gain momentum in 2020. Countries like Russia, France, Japan, Sweden, Estonia and the UAE have all proclaimed their intent to launch their national digital currencies.
China seems to be the country ahead of the pack in coming up with foundations for digital currency. Although most governments are centralized, they are looking at opportunities to incorporate decentralization into some facets. Governments are looking for ways to integrate blockchain technology to process vast amounts of data among agencies, administrative bodies and services.
Increased Regulation
You should expect to see more regulated exchanges and more jurisdictions coming up with more elaborate regulations. Increased regulation will lead to unregulated exchanges rebranding themselves.
Regulators will also come up with new regulations affecting Cryptocurrencies. The projection is that there will be a regulation boom around the world.
Some governments have executed some form of regulation on Cryptocurrencies. But in 2020 we expect to see more government and regulatory supervision of Cryptocurrencies. Dark coins and anonymity will be a thing of the past once the industry matures with legal compliance.
Bitcoin Halving
The Bitcoin halving in May 2020 is one of the major events that will occur in 2020. This historic event will see the amount of Bitcoins rewarded for successfully mining a block in the distributed ledger decrease by half.
As much as the halving sounds dramatic, it has happened previously twice. When it happened, the price of the Bitcoin increased. Bitcoin halving creates a scarcity within the crypto market.
Ethereum 2.0
As Bitcoin is being cut to half, Ethereum is moving to the second phase of its jumbo game plan. In the next stage, Ethereum will end the network’s use of energy-intensive proof-of-work and introduce a proof-of-stake consensus system. It will also bring sharding to help in taking care of the network’s throughput and speed.
The deployment and testing of Ethereum will have seven phases done in many years. Phase 0, which is named Beacon Chain, will be launched in the first quarter of 2020. Phase 0 will help create a robust technical basis critical to the success of a network.
Institutional Money
You should also get ready for institutional money in 2020. Corporations are working towards launching their own decentralized ledgers and blockchains. Big corporations are currently investigating digital assets.
Other companies are also developing enterprise solutions based on the Ethereum blockchain. Noteworthy companies doing this include Rabobank, ABN, AMRO, Citi, among others. We expect more companies to embrace blockchain technology in 2020 to power their enterprise production.
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