Speculation is the soul of the cryptocurrency market. Though it is present in all the worldwide assets, it prevails in cryptocurrencies a lot. Of course this quality works on the volatility of crypto world. Though 2020 may not silence the crypto market, but it promises to offer some significant developments to help the assets mature.
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Depending on the present and upcoming trends in the cryptocurrency world, the co-founder of cryptocurrency tracking and software company Accounting, Alex Lindenmeyer, Benzinga has mentioned some notable points which will shape the digital currency market in 2020.
The most important event to occur in 2020 is Bitcoin halving by May. It will reduce the bitcoins rewarded for mining block will get halved in the digital ledge like from 12.5 to 6.25 BTC.
The halving is being done to stabilize the Bitcoin supply as it is reaching its full saturation and no more bitcoins are going to be mined. As Bitcoin gets rarer, it will get pricier than gold or it will gradually lose value to largely available BCH which are forked off from BTC in 2017 for this purpose only. Ultimately, BTC needs to decide whether its shortage will define its value or not.
Here comes Libra
The bad thing about Libra is that Facebook stated that it will not be accessible till the 2020 summers, till the time it clears the hurdles. Though the coin has backing of Vodafone, Uber, but these uncertainties made parties PayPal, eBay and MasterCard leave it.
Libra will certainly have a potential user base of 170 million only in US and will be used even to pay your Uber drivers. Depending on the accuracy of the model and how quickly the pending scrutiny is done by the government, Libra will definitely make a mark where the other tech and fiscal companies shall follow.
The Feds come in
2019 showcased the rising awareness of the federal agencies in cryptocurrency. The Federal Reserve recently stated that US central bank will mull over a virtual analogue. And, in the meantime, the IRS is issuing guidance to report cryptocurrency transactions for the upcoming tax season.
Though current regulations are encouraging and supporting and it will foster growth and enhance transparency in the industry.
Consolidation of the market
Regardless the fact that Bitcoin fell in 2018, the number of cryptocoins reached 2300 in 2019 according to CoinMarketCap.
But, 1/3rd of the coins have $100,000 volume daily. With the rising potential of cryptocurrency, the major stream finances may invest and increase the capital. However the market has reached saturation and no more coin shall come in 2020.
Tie up of Crypto and Fintech
The rise of cryptocurrency has made it compulsory for the fintechs to hook up. There are questions about how these transactions will take place and regulated. But, most of the questions will be answered when the trial being and financial technology companies are ready to go with it.
So, all in all 2020 will be an all-rise or all-fall for cryptocurrency. Either coins will showcase their merit or will gradually fade away.