As cryptocurrency enters its second decade, exciting predictions are afoot for 2020. Industry experts foresee mainstream adoption of blockchain technology and many more people open to trading cryptocurrencies as well as transacting digitally via blockchain. With mounting interest in the potential that blockchain technology and cryptocurrency hold, major developments in this market are predicted for 2020. Alongside this growth greater regulation is likely, as regulators seek to protect consumers adopting blockchain technologies and investing in cryptocurrency.
The coming year will see Bitcoin halve, meaning that there will be fewer Bitcoin available to mine, and miners will receive half the current reward for finding them. This will mean Bitcoin will be in shorter supply, which is likely to push its perceived value up and therefore trigger a bull run. Bitcoin is currently trading at $7,429.9 and has enjoyed growth of 90% in 2019, from $3,800 to $7,300.
Ripple’s XRP fell by 47% last year, and speculation had mounted over whether Ripple would dump its XRP currency. CEO Brad Garlinghouse has denied this, although Ripple has sold large amounts of XRP lately. Ripple XRP hit a two-year low in December at $0.20.
Litecoin has so far demonstrated it is going for growth in 2020, with its largest 24-hour percentage gain of 41.44%, trading at $72.815 (January 5th) but still way down compared to its all-time high of $421,092.53.
2020 vision for cryptocurrency and blockchain technology
Industry experts have made some exciting predictions for the coming year. Predictions from Brian Armstrong, CEO of Coinbase include a huge increase in the number of cryptocurrency users, to over 1 billion. He also believes start-ups and emerging markets will look to adopt cryptocurrency, and the majority of tech companies will incorporate cryptocurrency and blockchain components.
Armstrong says Governments are likely to work with central banks to roll out cryptocurrency, an example of this being the eKrona which is currently being piloted in Sweden. When it comes to the success of cryptocurrencies, utility will be the key, with privacy, usability and speed being of the essence.
Partner at Pantera Capital, Paul Veradittakit’s predictions include more market consolidation, such as Facebook’s acquisition of chainspace, resulting in the development of Libra. He also believes growth in Security Token Offerings will continue, albeit fairly slowly. Notable investment in this area includes Santander’s $20m bond on Ethereum. Veradittakit also sees ICOs reducing year on year, a trend that is likely to continue into 2020 due to more regulatory hurdles.
There will be greater interest from large financial institutions such as Goldman Sachs, the World Bank and JP Morgan, who have all shown their interest in potential opportunities that cryptocurrency and blockchain technology offer.
Cryptocurrency may also be set to become more mainstream and accessible to a mass market, with the Calibra Wallet set to launch in 2020, making cryptocurrency transactions possible for over 2.4 billion people who could potentially adopt Facebook’s Libra Coin.
The gaming industry could also start to incorporate more cryptocurrency use, with in-game purchases and crypto assets built in, such as those seen in ‘Splinterlands’ on Steam.
With so many cryptocurrencies available (around 1,600 at the last count) and new ones being introduced all the time, the market is burgeoning. With massive scope for investment, and many exciting predictions for the coming year, 2020 could be huge for the cryptocurrency market.