The main trends of 2020 in the cryptocurrency market

As we turn the calendar to 2020, it's time to think about what the coming financial year will look like. Fast growthThe S&P 500 index puts off dreams of moving to alternative finance, but the situation can change instantly.

China is exploring the possibility of launching a digital renminbi;Facebook is aggressively promoting the global stablecoin project. World powers have focused on who and how will control finances. How will all this work?

At the same time, hundreds of cryptocurrencies, which the world basically learned in 2017, may fade into the background.

Given all this, qz.com experts shared their own forecasts for digital money in 2020, let's get acquainted with them.

Bitcoin will take off again

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It seems that after the recovery in 2019, Bitcoin (BTC) will again grow, and this is due to a reduction in the remuneration of miners (with halving) in May 2020.

If now miners get 12.5 BTC (about $ 87000) for adding each new block to the blockchain, in May the reward will decrease to 6.25 BTC. This reduction occurs every 210,000 blocks (approximately every four years).

The previous halving was in July 2016, whenthe reward fell from 25 bitcoins to 12.5. Bitcoin was not then so popular and was trading at around $ 600-700. If some people think that the effect of halving is already in the current price, then others are sure that the demand for bitcoin will become even more relevant after it.

Ethereum will plummet

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It is likely that the current capitalization of the ether of $ 14 billion is not entirely justified, given that it made many investors “stuck” in expectation of more than just digital money.

The creators declared Ethereum decentralizedInternet in which p2p platforms can thrive without corporations. Ethereum had to change everything from file storage to lending markets. A lot of disappointments. In addition to a traded digital currency, Ethereum could not imagine anything. If we have bitcoin, why do we need another one?

It seems that the serenity of ethereum should end somewhere if Bitcoin somehow does not “drag” it with itself.

Stablecoin Libra will not be launched in 2020

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Facebook probably won't be able to launchLibra in 2020 - at least in the format that was originally promised. Can you imagine how Facebook will launch digital currency in the US presidential election year?

Facebook has already tarnished its reputation by showingwhich without special planning can “jump” onto the blockchain technology and literally tickled the nerves of the regulators, forcing them to focus on big technologies.

If there will be progress, then, apparently, it will beless connected with cryptocurrencies and more with traditional finances - with something like a Facebook debit card, and not full-fledged money from this company. Facebook is also likely to focus on things like WhatsApp Pay.

Digital Yuan Experiments

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Apparently, in 2020, China will really introduce the digital yuan to the public. Digital Currency Payments (DCEPs) have been developed by China for several years now, and should begin at 2020.

Full deployment may not be, butthere will be trials among corporate partners. As China moves into the world stage and new US sanctions arise, the country's efforts can change the balance of financial forces in the world.

Many blockchain projects may collapse

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The silent collapse of the blockchain industry is whatuntil they scream newspaper headlines. Projects do not have enough money, and the patience of many is about to burst. How long have programmers and managers been ready to work on something that no longer attracts people? Or is all this simply no longer meaningful?

In 2020, many blockchain developers, researchers and marketers may redirect their efforts to some"Next hot thing"like cannabis or 5G.

SEC will approve Bitcoin ETF

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United States Securities and Exchange Commission (SEC),finally approves Bitcoin ETF. The regulator actually has little reason to delay bitcoin ETFs, and concerns about market manipulation have little to do with this financial product.

In addition, competition from future Bitcoin ETFs may lead to lower commissions of private investment companies.

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