What are the trends in the cryptocurrency industry and the blockchain space that can take positions and maintain them for the rest of 2020?
The crypto space is a place where everything changes in the blink of an eye. New technologies, major market players, exchanges such as Coinbase margin trading exchange, and trends are shifting much faster than in any other industry.
From the current point of view, it seems that a very exciting development is coming. Yet this chaotic industry may bring more opportunities in the coming months, and everything we’ve seen before will be surpassed by something truly extraordinary. However, let’s quickly check all points of view.
The transition to a cashless society
One of the most defining trends for society in 2020 appeared unexpectedly. Immediately after Christmas, the world seemed safe and sound, despite the terrible news from China. Later in the winter, however, the rest of the world was infected with a “deadly” virus.
The COVID-19 pandemic has paralyzed, destroyed, and stopped many industries and made people rethink their attitudes to many things in life. Such previously dubious practices as remote jobs or cryptocurrency payments have gained considerable force and appear to remain present even after the end of the pandemic.
Why work from the office when everything can be managed effectively from anywhere in the world? Does it make sense to keep spending your luxury office expenses if you just don’t need it in the digital age?
Besides, it’s time to get rid of money – we need to take a step towards a new quality of life. Meanwhile, the blockchain field has also flourished as a new era requires more technology professionals in the blockchain itself. In today’s world, cryptocurrency interaction applications have become advanced and clear enough to allow the purchase of digital assets only with a debit card. Stablecoin wallets are in high demand and this obvious trend is no longer just a plan, but reality as institutions join the club in significant numbers.
Cryptocurrency is available to anyone
The image of cryptocurrency is changing worldwide faster than ever. Bitcoin (BTC) and Ethereum (ETH) are no longer a bubble, as BTC’s market capitalization is now larger than Coca-Cola and Intel, and blockchain is integrated into many areas and operations.
In addition, institutional investment in cryptocurrencies is increasing as leverage trading bitcoin demand grows amid the coronavirus crisis, with Grayscale experiencing a dramatic increase in its assets this year. More hedge funds are accumulating digital wealth quickly, and that will certainly continue this year.
Although the Facebook-led crypto project still has many setbacks in the face of the US Securities and Exchange Commission (SEC) and other regulators, its launch has been steadily delayed. As the mixing of different monetary policies is questionable for the success of the project, we are not sure that their project will ever see the light of day in its current state.
One thing is undoubtedly obvious: The world of ordinary users needs more user-friendly interfaces to interact with cryptocurrencies and they are coming. The digital share is constantly growing, as in 2020 it is easier to open a checking account in dollars or euros than ever before.
Increasing intake of DeFi
Decentralized financing or DeFi has become one of the most well-known trends in cryptocurrency since the end of 2019. The sector has grown rapidly over the last six months, and recently set a new record as the total value locked in DeFi hit a surprisingly new height of $9.11 billion.
Many companies operating in the field of blockchain have already presented their products to DeFi. Popular protocols such as Compound, Balancer, Curve and other platforms have opened the door to a whole new world of crypto opportunities for investors looking for deep liquidity, varying risk-reward ratios and exciting, affordable modern financial instruments. We are yet to see further adoption along with the growth of the consumer base, as institutional capital comes in the field of digital assets.
The arrival of CBDCs
Nowadays, the digital currencies of the central bank or CBDC are a hot topic of conversation or decision in the development of many countries. China, one of the world’s largest technology development sites, has begun to create a local digital asset.
It would be exciting to see how the launch and deployment of the digital yuan could change the crypto world and shift the balance of economic power, removing the dollar’s status as a global reserve currency. Can this example inspire other leading countries? The struggle can be fierce in this area.
Stablecoins initiatives are still widely undervalued around the world. Most cryptocurrency holders are subject to instability and counterparty risk. Not only global or local banking projects will be in the space in the future, as private companies continue to grow. Projects such as USD Coin (USDC), Paxos Standard (PAX), and Stasis ‘Euros combine the advantages of a blockchain with the reputation and relative stability of fiat currencies.
Improved privacy with blockchain
Real progress happens when a crisis is imminent. As early as the 1990s, the Internet was something of a miracle, magic, or a secret invention. Today, in the age of social media powered by mobile devices, it is difficult to imagine our daily lives without the need to communicate online. But with the growing commitment to digital life, we forget that all available services used not only by casual users but also by most prominent CEOs and even presidents are still too fragile, despite technological advances.
The latest news on Twitter was that hackers have compromised at a very high level, politicians, celebrities and individuals in the field of technology. The problem leads to the question of what to do next. Discussions about blockchain-based improvements are heating up very quickly. We may see more problems, as hacking activity and cryptocurrency ransom demands will not disappear soon.
See Also: Twitter Hacked?
A look at 2020 and beyond
Many analysts make far-reaching predictions about cryptocurrencies and the price of Bitcoin, predicting further possible trends over the next decade. Undoubtedly, this once niche field is set to transform into a global core ecosystem. Remember to expect more price records, more inventions, and more absorption.
What will the world be like in 10 years? As early as the 20th century, this question was much easier to answer, but any predictions made today are likely to become obsolete in a year’s time. However, we can be sure that decentralized blockchain-based technologies and services will shape the further progress and development of humanity.