Cryptocurrency trends in 2020 remain the leading indicators for stakeholders who have interests within the crypto-verse. Agreeably, cryptocurrencies, and applications based on blockchains have disrupted the perceptions with investments and trust. And we are yet to hit the climax.
Well, it is a disruptive industry, where investors are required to keep checking on things constantly. Digital assets are invisible, but they form a significant industry with exchanges tracking relative values against time.
Looking back in time, Bitcoin hit the $20000 in December 2017. As of now, it’s struggling around the $10000 mark with an all-time leading in market capitation. What will happen when all Bitcoin mining ends (it’s now past 80%)?
The year 2020 has gone down in history as a unique year in light of the COVID-19 pandemic effects. The value of Bitcoin seems to oscillate with similarity to the one of gold.
As the year 2020 wears on and 2021 is around the corner, what are the current cryptocurrency market trends?
Let’s check in with the Top 5 Cryptocurrency Trends in 2020.
1. Cryptocurrencies Are Becoming More Widely Used
There’s no doubt regarding the rising dominance of blockchain applications, like Tezro app, and cryptocurrencies as mainstream ecosystems within businesses. More businesses are now open to accepting cryptocurrencies as acceptable modes of payments with global appeal.
Governments hold varying views regarding the uptake of crypto-blockchain technologies. Some perform total bans across the board while others are open to the crypto-businesses so long everything meets taxation and legal benchmarks.
Quite lucky enough, the authorities favoring cryptocurrencies end up spreading a beneficial stream to those nations that crack down hard on crypto. Exchanges and more merchants and individuals are getting on board with cryptocurrencies.
Mainstream and notable businesses have taken giant steps towards adopting blockchain-based technologies to roll-out everyday transactions- and this also extends to the payments and receipts via cryptocurrencies.
JP Morgan is among the banks with notable progress towards integrating transfers powered by blockchains. IBM also joins in the same ranks with advanced explorations on blockchain technology to redefine transparency and trust in businesses.
2. Bitcoin’s Dominance in Light of Cryptocurrency Trends in 2020
In 2020 the domination of Bitcoin will keep rising. Bitcoin is the first-ever cryptocurrency, and into its second decade, it continues to hold on to that position. There are several validities about why the domination of BTC will remain.
● Cryptocurrencies are volatile on a broad scale. However, Bitcoin exhibits the least oscillations in volatility. It’s the main reason why crypto-enthusiasts will retain a preference for it. All other Altcoins are rallying up towards increasing their capitation valuation, but BTC remains the most valuable of them all.
● Vigorous developments are shaping up to plug into the gaps within the crypto-sphere. One reason why altcoins arose is the scalability problem with BTC. Therefore, even as Altcoins perform amazingly against scalability, the rise of lightning networks and side-chains offers a temporal wave of solutions- hence bitcoins are still most attractive in traction against scalability among crypto-enthusiasts.
● Arising from the leading capitation, Bitcoin continues leading towards far more established acceptability for users. Also, transactions have low costs, with peer-to-peer mechanisms having greater appeal among users. Theses combined keep bitcoin a great digital-asset whose appeal will continue to rise in 2020.
3. Market Consolidation
Industries survive on valuable propositions they offer their key stakeholders. Drawing you back into 2017, many ICOS flourishing around with whitepapers and fancy roadmaps. The truth is, most were pure scams. Crypto-market consolidation will continue to take shape and form in 2020.
In conclusion: weeding out weak actors with little value to offer or pure imitators. A great example remains on Bitcoin; no one has ever been able to imitate Bitcoin. And that’s one reason why it remains as the lead cryptocurrency.
From another outlook, ICOs as a funding model for projects was quite risky. Therefore, the morphing of investment vehicles in light of genuine digital-assets and value creation has seen advancing agendas towards navigating through challenging environments. ICOs faded away and came IEOs and finally the STOs.
Also, there are exchanges offering staking products, and a good instance is Bitcoin Futures, among other crypto CFDs. Therefore, when Cryptocurrencies come at par with offering CFDs as risk mitigation of hedging products, it clarifies that Crypto-currency markets have hit consolidations.
4. Crypto and Fintech Hook Up
Crypto is all about finance, and fintech is the infusion of technology into finance. Coincidentally, blockchains and their cryptocurrencies are all derivations from technology. No government or individual has control over the blockchains across the globe, so regulation tightening in one nation has zero effect.
Exchanges shift countries for registrations. Or use IP masking and advancing browser technologies. The internet allows crypto-enthusiasts to access blockchains anywhere globally.
There’s no cutting off fintech from crypto. Fiat transfers and exchanges into crypto are gaining traction across banks and businesses.
Governments are slow across the board. Reasonable actors have come to terms, and governments must agree that the blockchains are here to stay. One angle central banks are adopting is to roll out Central Bank Digital legal tenders.
While some actors have distanced themselves, its all catching up, and the infinite mergers between crypto and fintech will only keep getting more robust with time.
5. Decentralized (DeFi) Exchanges
The Post-2019 crypto-sphere has seen a significant rise in decentralized finance. DeFi products are already in the markets. On the same scale, decentralization of exchanges is flourishing, and it’s a merger with cloud storage technology that is taking the crypto-sphere to unseen heights with both scalability and security.
Tech is a real disruptor, and DeFi, in this case, is bringing in massive leverage in terms of cost reduction, liquidity matching as well as great offerings for risks-reward ratios.
In 2020, Cryptocurrencies will continue to experience significant shifts as institutional investments close deals by entering the crypto sphere. There are vast opportunities, and smart contracting also presents another level where DeFi has tremendous opportunities to explore and plug into the missing gaps or increase the value of existing relationships.
Summary of the Top 5 Cryptocurrency Trends in 2020
The year 2020 has had a considerable downturn with the effects of the Covid-19 pandemic. However, cryptocurrency market trends have continued with more users adopting and actually, due to the imposed social distancing situation caused by the pandemic, there are more crypto transactions now than ever.
At another level, in 2020, huge milestones have been covered in merging Fintech and Crypto-decentralized forms of products and investments.
Crypto trends are shifting toward advanced methodologies, which means it‘s necessary to be aware of the financial risks and devise more robust mechanisms to make blockchain businesses thrive.