Although 2020 is unlikely to calm the crypto market, it does offer many critical events that will aid in the maturation of the new asset and help explain why it may become a critical component of finance in the future. For more information, visit Crypto Investor.
Entering Libra
This is Libra, Facebook’s asset-backed stablecoin launched earlier this year, even if regulatory impediments remain evident until at least summer 2020. However, the new stablecoin, backed by Uber, Vodafone, Coinbase, and even the Kushner family, is still fraught with uncertainty. Other interested parties, including Mastercard, eBay, and Paypal Holdings, have entangled in similar ambiguities and are now entirely devoid of Bitcoin.
Furthermore, due to the popularity of Facebook’s integration of libra and its accompanying Calibra wallet, social network users, most of whom have never used cryptocurrency, may suddenly pay their Uber drivers.
The co-founder of Accointing saw it as a matter of giving the cryptocurrency a veneer of legitimacy, stating that “Stables play a key role in space. To be embraced, it is critical to transition fast from a value store to usable money. Additionally, [libra] will enlarge the concept that money has no place of origin. By itself, this year’s heated discussion has prompted many people to consider cryptocurrency.”
The book may likely herald a time when Bitcoin becomes mainstream, and other IT and financial organizations will undoubtedly follow suit, depending on how efficiently this model is executed — and subjected to the already intense scrutiny of government regulators.
The Market Consolidates
The market may be a lower rung on the bitcoin food chain. However, since then, despite a flattening market in 2018 as bitcoin values fell, CoinMarketCap estimated more than 2300 cryptocurrencies on the market in 2019.
Regrettably, less than a third of coins move daily in amounts greater than $100,000. Meanwhile, almost a third are worth less than a tenth. As a result, the cryptocurrency market now offers more coins than ever before, yet overall capital has remained constant throughout 2019.
Although an increase in mainstream finance’s emphasis on crypto-monetary assets may result in a subsequent capital increase, it is doubtful that it will fall into tiny coins. Additionally, increased market scrutiny, legal limits, and improved transparency among the more prominent participants will likely filter out those that only attempt to coin rapidly. In any case, market saturation is predicted to have occurred by 2020, and the number of coins available is unlikely to increase.
Bitcoin Has Gained Widespread Acceptance As A Hedge Asset
By the end of 2020, Bitcoin has reached another all-time high. This time, though, even institutional investors are struggling for a dime. Bitcoin is a hedge against inflation when the dollar is undergoing turmoil due to the combined effects of the US Presidential election and COVID. In addition, corporations can invest in Bitcoin to protect themselves against falls in the currency and other assets.
Banking Blockchain Cryptocurrency is powered by blockchain technology. Apart from cryptography, the technology itself has several interesting applications. For example, banks are increasingly researching blockchain money for transaction and data management. Businesses might investigate this possibility to save data and simplify financial records in the cloud efficiently. Blockchain banking has demonstrated the benefits of this technology, and other organizations are implementing it.
Regulation of Cryptocurrencies Makes Progress
Usually, restrictions are postponed until crypto-monetary levels are reached. However, authorities accelerated this process slightly in 2020, and relative regulatory certainty has been established for major cryptocurrencies. The XRP was an exception, as the US Securities and Exchange Commission declared the tokens to be securities and sued Ripple.
Regulatory certainty, on the other hand, is likely to raise the value of cryptocurrencies. As a result, companies that have been on the sidelines awaiting such certainty can now begin making forward.
PayPal Facilitation
PayPal is one of the most widely used payment platforms currently available. So the business’s announcement that it will simplify the process of purchasing cryptocurrency via the network is a significant step forward. The majority of businesses accept PayPal for international transactions, and crypto-integration enables corporations to accept huge cryptocurrencies.
Massive Adoption of Cryptocurrencies
Established corporations, such as PayPal, which accept cryptocurrency, will strive to accept crypto payments for their products and services from a broader range of organizations. Attempting and appealing to a bigger demographic is significant in terms of expanding the business’s tent. As a result, Bitcoin and other cryptocurrencies are likely to be widely adopted.