With all the crazy things that have happened this year, one would think that cryptocurrencies would fall—at least since other currencies have been falling. However, cryptocurrencies have been on a continuous uptrend, and at a point, it was a bit scary as to how drastically it could fall (if it would).
That’s not all; 2020 introduced many new cryptocurrencies and reintroduced many others that have been around but have not been noticed well enough. In all, we can agree that they’re all flourishing to some extent. Let’s take a look at some of the trends we have noticed in cryptocurrencies in 2020.
New coins in the block
At a point in our lives—talking about the year 2009—we only knew about Bitcoin. Bitcoin was such a big name that everyone wanted to be a crypto trader. Even when newer cryptocurrencies started to come out a few years later, we were still overwhelmed by Bitcoin’s volatility that we hardly paid any attention to.
By the year 2018, we already had around two thousand (2000) new cryptocurrencies, and the ones that came a few years after Bitcoin was already trending well. Today, in 2020, the number of cryptocurrencies in 2018 has more than doubled. We have over five thousand (5000) cryptocurrencies, and most of them are doing well.
Who knows, maybe a few years up the line and Bitcoin would have a substantial competition. Already we can see the upward trend that Ether is taking. Hopefully, it will take its place very close to Bitcoin.
We should all agree that 2020 has made so many people venture into cryptocurrencies day trading. Most people lost their jobs; economies were crashing, businesses were going bankrupt, and folding up, life in its entirety was becoming harder and harder. However, cryptocurrencies kept pushing forward.
Many people realized that the best way to get their heads in the game and their hands back to work was to invest their minds into crypto trading. Companies, governments, regular individuals began to venture into cryptocurrencies, and I’m very sure they haven’t been disappointed.
Although there have been some occasional downward trends, the uptrend has lasted longer, but that’s the goodness of day trading. The idea is not to make a whopping sum of money in a single minute; instead, the idea is to make small profits in short periods, and by the end of the day, the overall profit would be mouthwatering. Cryptocurrencies keep on increasing in popularity, and in a few more years, we might begin to see more and more people getting on board if the cryptocurrencies keep up the uptrend.
Increased practical usage
When cryptocurrencies first come up to the limelight—talking about Bitcoin’s entrance to the market—we saw how so many business owners rejected it like a plague. Nobody wanted to risk their business on something as volatile and untrusted as Bitcoin.
A few years down the line and we started talking about blockchain and the volatility of Bitcoin. Many businesses began to venture into doing business with Bitcoin and other cryptocurrencies. Somewhere around 2016 and 2017, gambling with Bitcoin became something that gambling websites wanted to do. These days, we even have online casinos like Bspin who have fully embraced the use of cryptocurrencies and only accept it for transactions.
Cryptocurrencies are starting to enjoy proper regulations
Earlier in Bitcoin’s entrance, governments didn’t want to accept the idea of trading with Bitcoin fully and, as such, didn’t write any law to help the currency become safe and secure for use. Cryptocurrencies have been used over the years for several cybercrimes and terrorist acts. The blockchain’s privy nature has started to pose some worries to governments, and now, regulations are beginning to visit the industry. Since cryptocurrencies cannot be banned, if they must be used, they should be crime-free. We will see the results of these regulations very soon.
However, there are worries among crypto traders that the regulation of cryptocurrencies could lead to something even worse for the industry as some of the laws could take away the privacy, which is what many people enjoy from trading with cryptocurrencies. Well, we’ll have to wait for this one out to see if the regulations will birth something positive or negative for the market.
Yes, this may not be a new occurrence in the history of Bitcoin. This is the third time it is happening, and we’re expecting it to happen again in three or four years from now. Bitcoin halving involves the decrease in the amount that miners are rewarded with for successfully mining a block.
One fascinating thing about Bitcoin halving is that it always brings about a dramatic increase in Bitcoin prices. Around 2012 when the first halving happened, Bitcoin rose from $10 to something around $100. In 2016, when halving took place, we saw Bitcoin jump from $400 to $800 in a very short time. The narrative wasn’t different in May this year. Those who planned and prepared for the halving to take place raked in a reasonable amount of cash during the lockdown.
Everyone who has been following the history of cryptocurrencies would assume that Litecoin should naturally be the heir to Bitcoin’s throne, considering the fact that Litecoin was released just two years after Bitcoin. However, Ethereum has given the other cryptocurrencies a considerable gap, and it keeps going.
Although the currency is highly volatile and traders could concede some terrible losses if they’re not careful, profit-making chances are just as high. Etherum is still in its very early stage, and it’s one of the most promising cryptocurrencies at the moment. Hopefully, it will shoot up close to Bitcoin and take its place among the stars in a few more years.
Cryptocurrency trends in 2020 have been more positive than negative. We have seen a lot of improvement in the acceptance of cryptocurrencies for trading and transactions. The US government is also already placing some regulations on the market. The future is ever bright for cryptocurrencies.