The rate of change and progress in crypto is as fast as the swing of a lightsaber. Blink and you will miss the latest trends and what might well be the opportunity of a lifetime.
So, in this new decade, we consulted some experts who helped us put together a list of the top 20 things to watch out for in the crypto world in 2020. Read on if you on the lookout for opportunities this new year that you can ride to success.
The list includes the following:
- Halves And The Halve Nots: in May this year, the amount of Bitcoin that can be mined will half again per its operating program. Will the halving and increased difficulty in mining Bitcoin send prices rocketing up, or will fewer people invest in mining if the rewards are simply too meager? That remains to be seen.
- SEC Loves Telegram, Or Not!: Telegram is a popular messaging platform that touts itself as being more secure than the likes of Whatsapp. In 2018 it issued an initial coin offering (ICO), with the shares being sold in the United States, aided by a SEC exemption. Buyers of these shares are supposed to get crypto tokens from Telegram, but plans for that have been postponed since the SEC sued to prevent the distribution of these tokens. The dispute might be resolved this year, but regardless of if that happens or not, the outcome will influence the behavior of investors and developers as regards the sale and distribution of crypto coins.
- CBDC Boom: the year 2020 according to those in the know will see a boom in Central Bank-Backed Digital Currencies (CBDC). This adoption is significant in that it can easily improve the efficiency of the participatory central banks and boost business growth and development. Could 2020 be the year of CBDCs? We think so.
- Facebook and Calibra: Facebook has long announced plans to dominate the crypto world with its Calibra project. This is set for launch in mid-2020 but whether it will proceed in the face of mounting opposition by governments and individuals remains to be seen.
- Cryptic Investments: crypto demand remains high and this has led to a few financial institutions adding crypto to their portfolio as an investment option. This trend will no doubt grow this year and is worth keeping a beady eye on. Expect to see more banks, even the more traditional ones enticing new and old customers with very attractive crypto investment opportunities.
- Enhanced Retail Adoption: a growing number of retailers are opting to accept crypto for the payment of goods and services. This trend will no doubt continue and expand in 2020 and we can expect to see greater adoption and use of digital currencies by retail firms around the world.
- Regulations On Steroids: perhaps the most significant crypto trend of 2020 is that of increased regulations. Existing regulations related to crypto will be clarified too and this regulatory boom might well speed up the adoption of crypto across much of the world.
- Bitcoin Blues: the global financial climate appears uncertain and unfavorable. Recession looms and might well affect a majority of global economies. Now, Bitcoin has long been touted as an inviolable store of treasure, especially in times of severe economic turbulence. Will a global economic downturn lead to booming demand for Bitcoin and a consequent rise in its price? Let’s hope so.
- Decentralized Exchange Boom: increased regulatory pressure will likely trigger a rise in the number of decentralized exchanges, and this trend might continue for the rest of the decade.
- Asia Loves Crypto: the last four months of 2019 saw an unexpected resurgence in crypto across much of Asia. Most Asian countries, China, in particular, were previously either hostile or indifferent to crypto, but appear to have changed their minds and are in the process of embracing it for all they are worth. Will this trend continue in 2020? Only time will tell.
- U.S. Politricks: folks in the U.S. are due for a presidential election in the latter part of this year. As public perception of digital coins increases, expect to see some or most of the candidates take positions for or against digital coins. We say good for them.
- Better Scalability: scalability has long been a major impediment to the greater adoption of crypto. This issue is being addressed as we speak and will improve the sustainability of crypto as we move into a new decade.
- Privacy coins rise or fall: privacy coins enhance the anonymity of users but are not loved by governments and regulatory authorities. Whether these coins can be tweaked to adhere to regulatory concerns and still protect the identity of their users will be known this year.
- Defi Adoption: defi stands for decentralized finance and is a growing trend that is assuredly worth keeping tabs on in 2020. Whether it will persuade more people to invest in crypto assets or further open up the global economy to those it is normally closed to will be discovered later on.
- Ethereum reinvents itself: early this year, Ethereuem will be thoroughly overhauled. The success of this might persuade other cryptocurrencies to toe the same line, or it might send them scrambling for the hills in full flight.
Author: Andreas Waechter