The crypto market is steadily growing, and it is quite a lucrative field to invest in. Understanding that the value of investment depends on speculation, determining investments require multiple factors to consider. Here are some relevant events and cryptocurrencies to keep an eye on in 2020:
Starting with the most prominent crypto on the market: bitcoin. In May 2020 bitcoin will be halving the reward for mining, which will be the 3rd time since its launch. The previous two times bitcoin halved its rewards, BTC surged drastically, so the expectations are high.
The tech giant Facebook announced it would be launching its crypto, Libra, a stable coin. Skepticism is high as Visa, MasterCard, and Paypal have all reconsidered their partnership for the launch. However, with how big Facebook is and the 2.5 billion monthly users worldwide, the potential reach of this new currency is enormous.
Ethereum, now the 2nd largest crypto by capital, will launch Ethereum 2.0, which could influence its pricing. They have collaborated with major multinational corporations, such as Microsoft (launched a token in ETH) and Ernst&Young (invested in the development of data protection).
Chainlink, which facilitates the use of contracts that connect to applications, payment systems, and transactions, has grown in popularity. This technology allows users to exchange assets without the involvement of third parties. Chainlink’s price has increased almost sixfold since its launch. Even Google is working on using this crypto. Chainlink use SWIFT and oracle technology, which gives them a considerable advantage in the mainstream space.
Governments are going to play significant roles in 2020 as the United States government will add crypto on tax papers, which means crypto will be more regulated. That’s not necessarily a bad thing; it just means cryptocurrency is becoming more mainstream.
China has declared blockchain one of its main priorities, which makes for tremendous opportunities. They are planning to launch a digital yuan in the future, which could overtake fiat currencies as a world currency. A digital national currency could set a precedent for cryptocurrency, which is something worth keeping an eye on.
Published: 31 December 2019