Cryptocurrency Costs for 2020: Trends
What awaits Bitcoin and altcoins in 2020: trends for the growth of the cryptocurrency market.
In 2018, cryptocurrency turned the world upside down when hundreds of digital coins showed multiple growth in a matter of weeks.
The correction, which, according to all forecasts, was supposed to end by the fall of 2018, continues to this day. There are no prerequisites for a trend reversal at the moment.
Cryptocurrency Forecast for 2020: Trends for Growth
Nevertheless, among traders and investors, there are always adherents of both a positive and negative outlook on the development of cryptocurrencies in the coming year.
Let's get acquainted with the main trends characteristic of the cryptocurrency market in 2019.
Optimists, confident in the imminent change of trend, link their expectations with the adoption of the Bitcoin ETF by the US Securities Commission (SEC). This should serve as a starting point for the global legislative regulation of digital assets and blockchain technology.
Pessimists predict a further fall in the market to around $ 1000 -1200 $. Their arguments are based on the reluctance of state bodies and banking institutions to refuse fiat.
Cryptocurrency Market Trends for 2020
We will consider system changes that can serve as an impetus for the next spasmodic increase in the price of BTC, ETH and other currencies.
1. Accelerated implementation of blockchain technology.
According to a report from PwC, a consultancy and audit company to major international corporations, several clients are exploring the practical use of blockchain to turn huge amounts of money around.
This trend is expected to be picked up by smaller companies. PwC noted that the demand for consulting services regarding the blockchain is estimated at $ 1.7 billion, and may continue to accelerate.
2. Acceptance of ETFs.
In February-March 2019, the SEC will issue a verdict on the fate of the Bitcoin ETF.
In recent days, information has been actively circulating that the ETF will definitely not be accepted. But we all know how much the market loves to go against the news background and rumors. Legal registration and recognition of ETFs will allow the use of bitcoin in institutional transactions, and will open the door to colossal investments.
3. An increase in the number of decentralized exchanges.
Decentralized exchanges are attractive to investors by the impossibility of interfering in the transaction of third parties. That is, your funds are not stored on the exchange wallet, the account cannot be blocked by decision of government bodies or private individuals.
Their development is quite expensive, but the need for convenient and independent trading floors is now extremely high.
4. Development of dApps.
dApps are smart blockchain based distributed applications that work on P2P networks. dApps should be widely distributed around the world in 2019, and provide a clear base for crypto projects and games.
5. Replacing the ICO.
The rapid growth of development and legal costs of ICOs provokes the transition of developers to STO in 2019. It is predicted that in the near future STO will be adopted as a standard model for the deployment of most cryptographic projects.
6. Improved scalability with the Lightning Network.
At the beginning of 2019, BTC registered an escalation in the capacity of the Lightning Network. Outstanding analytics provider Bitcoin 1ML has seen a 23% increase in lightning network bandwidth over the course of a month.
Experts predict the high scalability that will be achieved by off-chain technology.
What awaits Bitcoin and altcoins in 2020.
Based on the movement of several large digital currencies, we can conclude the development trend of the entire cryptocurrency market in 2020.
Let's dwell on four base coins: Bitcoin, Ethereum, Ripple, Litecoin.
Bitcoin: Bitcoin is the main coin, the base for the evaluation of absolutely all altcoins. Therefore, despite the low practical benefits, the price of bitcoin should rise in 2019. Bitcoin will only increase its value for the crypto market by improving the scalability of the Lightning network.
Ethereum: Ether has undeniable practical value. Currently, the development team is launching the Constantinople hard fork, whose goal is to increase network bandwidth, as well as reduce rewards for the block found. Despite the eccentric statements of Vitalik Buterin about the fate of Ether, which have served their role in the dump of the coin, Ether has every chance of retaining its place in the TOP-3 cryptocurrencies for many years.
Ripple: Ripple is doing everything possible to integrate blockchain and cryptocurrencies into the banking sector of the economy. In September 2018, the launch of xRapid, an integrating platform for establishing a connection between different currencies, and for fast transactions, was launched. It is expected that in 2020 many banks will take Ripple into service.
Litecoin: Litecoin is best suited for everyday tasks due to its relatively low cost. LTC is gradually taking over the market as the main payment system with short-term plans for launching debit cards.
In addition to the aforementioned forecasts and trends for a number of coins, other niche cryptocurrencies are Eos, Neo and Stellar. They are expected to gain popularity through security token offers.
The extreme volatility and extreme riskiness of cryptocurrency transactions cannot be denied either. A certain stabilization of the market is needed, which is most easily achieved through the distribution of assets between a large number of investors.
The upward and downward trends of the crypto market, set by Bitcoin, also continue to have a tremendous impact on the development of all coins.
Since only the first month of 2020 is coming, we suggest observing how the first quarter ends. This will allow us to adjust the forecast, gaining a more accurate idea of the trends in the cryptocurrency market in 2020.