Most important about the trades in the market of cryptocurrency are speculations. The position on the market and the value of some cryptocurrency is determined by interest and speculations about it. Today, the crypto market has a lot of ups and downs, especially because there are lots of pyramid schemes that are affecting the market and potential buyers to be more careful when they decide to buy some cryptocurrency. However, trustful cryptocurrencies have a strong back-up in blockchain technology, which prevents a possible scam.
The year 2020 will be important for this kind of market, mostly because a lot of companies are considering if they will use this kind of monetary system, but everyone has to be sure about the consistency of values of some popular cryptocurrencies like Bitcoin, Ethereum and more. In this article, we are going to present to you the best five trends about the cryptocurrencies that we expect to happen in 2020.
During 2019, the Facebook company has introduced us with their plan to get on the crypto market with its currency, with the name Libra. It is going to be available in the summer of 2020 when they finish everything about the regulations. This new coin will have a back-up from some big companies like Vodafone, Uber, and other companies that are interested, such as eBay, PayPal, MasterCard, and more.
Libra has a big potential because there are a lot of people interested in this new cryptocurrency, only in the United States there will be around 170 million users. The biggest potential lies in the fact that there are millions of Facebook users, that maybe never seen or heard about the cryptocurrencies, will now use Libra to pay for some services like a phone bill, or drive with Uber.
Consolidation of the Market
There was a fall in value for most of the cryptocurrencies in 2019, but it is estimated that there will be more than 2000 new types of crypto in 2020. However, only a small amount of them has a trade that is bigger than 100,000 dollars per day, and most of these coins have a very small amount, a lot smaller than the value of one cent.
The value of most crypto coins remained still in 2019, and in 2020, it is estimated that more companies will get into a trade of this currency. Also, with the bigger interest of big companies about investing in the crypto market, it is expected that there will be a bigger consistency of most popular coins on the market, with less turbulence in values.
The Bitcoin Halving
There will be an important event about the Bitcoin in May of 2020 when they will reduce the rewards that people get from mining this crypto. The value will be reduced from 12.5 BTC to 6.25 BTC. This already happened twice, because Bitcoin increased its value rapidly from 10 dollars to more than 10,000 dollars in 10 years.
However, the people who were mining this cryptocurrency continued because there is still a great chance for big earnings, mostly because of its big value, that in one moment was near 20,000 dollars. Also, a lot of people are investing in this coin because everyone is expecting it to be money in the future. Also, you can check bitcoineras.com for more info about the value and trends about the Bitcoin.
Also, the mining process is near its end, because there is a maximum of Bitcoins that can be on the market, and that number is 21 million of these coins. When the process is finished, this coin will no longer be available for mining, and it will only exist on the market as a strong cryptocurrency with is value-based by speculations, popularity, and a number of people who are using it for payments.
Regulations by the Government
There is a big awareness by the governments of many countries about the safety of using cryptocurrencies. Also, there must be some new regulations that will determine how will people who are using these coins to pay the taxes. Because now, there are no regulations about taxes from using any cryptocurrency in the world.
However, with better regulations of using the crypto coins, there will be fewer fluctuations in the value, and it will influence the market to be bigger and safer to invest in. While some countries are welcoming the introduction of crypto on their market, some others like China or the United States, who want to regulate these coins with taxes. Also, there are some speculations that says how many people are using crypto for black market, so there must also be some solutions for preventing this too.
The market of all sorts of cryptocurrencies is on a big rise in recent years, where millions of people are investing in blockchain technologies and trading with the coins. The introduction of Libra has set up some new tendencies in the crypto market, and maybe there will be some similar currencies through social networks soon.
However, there are still a lot of important questions about how will everyone regulate the massive usage of these virtual currencies, and how are they going to implement them in the economies of countries, IMF, stocks, and much more. The biggest advantage is going to have the Tech Companies, who already are investing in this type of currency for a long time.
There is a lot of Fintech companies who are interested in investing in cryptocurrencies like Libra, and maybe developing some similar to that one. Some big Fintech companies like Chime got their investments from big finance companies like Goldman and Sacks, who see the value in investing in developing and trading in the crypto market.
The conclusion is that the crypto market will only get bigger next year and that there will be even more companies that will invest in the crypto. If the countries come up with some good regulations and determine the way of how will people pay taxes while they are trading of paying with cryptocurrencies, we can only expect even bigger interest from everyone to replace today’s money with this revolutionary way of payment.