31 Dec 2019 Jane Whitmoore
2020 Crypto Predictions And Trends
2019 has been a rollercoaster year for the entire crypto sector, with many price swings and trends changing from bearish to bullish, and vice versa.
However, 2019 was a fruitful year, as the crypto industry escaped from the bearish winter of 2018 and the consequences of the ICO boom in 2017. The sector doubled its market capitalization from January 2019, showing signs of maturing and institutional interest in the new technology.
2019 was also a year, which ran under the flag of regulatory crackdowns. Legislators from all around the world had to provide some crypto regulations, due to Facebook's Libra project launch preparations. Indeed, Facebook's Libra project sparked framework updates, which further cemented the place of cryptocurrencies and blockchain technologies in the modern-day economy.
Crypto experts made their 2020 predictions for the crypto sector. One of them states Bitcoin would reach $100,000. George McDonaugh, managing director of blockchain investment firm KR1, stated his confidence about the world's biggest cryptocurrency would increase its value tremendously.
"With the rate of adoption and new Bitcoin addresses registrations, it's imminent Bitcoin would get the push needed to be a crypto hegemon, McDonaugh added.
The other viral prediction for 2020 is the crypto sector would branch from the tech-oriented space into more traditional financial and economic areas. In the core of the forecast is the widespread adoption of blockchain technology in 2019, with a tendency for a further transition of businesses to the new model.
Wayne Chen, chief executive of Interlapse Technologies Corp, commented that the health sector would primarily benefit from the use of blockchain technology. Deloitte confirmed Chen's prediction, clarifying that the health industry would receive “enhanced security, ease of interoperability, and transparency of healthcare data”. The new model allows hospitals to exchange medical records fast and secure.
Other sectors like mining, natural resources trading, and precious metals also showed increasing interest in blockchain technology in 2019. The automotive industry would be one of the most beneficial traditional sectors, as there is a vast amount of data that has to be transmitted between parties.
2019 also marked the birth of decentralized finance (defi). Defi stands for a decentralized system for connecting borrowers and lenders without the need for middlemen, such as banks or brokers. Defi also defines new ways of granting investors with passive income via “staking”. Staking tokens for validating transactions is also at the core of the much-awaited Ethereum 2.0 update.
Defi comes even stronger in 2020 amid Facebook preparing to launch its Libra stablecoin project. Libra would be pegged to a basket of traditional currencies, as well as bonds. Libra's launch would also force the regulators to accept crypto ETF's, which would make the crypto sector more open to mainstream investments.
Wayne Chen expects a clear regulatory framework in Canada, as well as widespread recognition for the crypto sector in the institutional area. More and more governments and banks would acknowledge cryptocurrencies as a valid payment method. The other key trend to look for in 2020 is anticipated to encompass privacy, identity management and communications.Bitcoin Ethereum Blockchain Cryptocurrency Crypto Market Blockchain Development Blockchain Application crypto Bitcoin price cryptocurrencies bitcoin news cryptocurrency news cryptocoin crypto news analysis Blockchain technology