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The cryptocurrency market is full of volatility and speculations. The speculations in the cryptocurrency prices are full of surprises and luckily cryptocurrencies are able to survive because of their potential. The cryptocurrency ecosystem is made up of a diverse set of individuals which can be categorized mainly into crypto traders, crypto investors, miners, and cryptocurrency exchange development company.
The crypto market of 2020 is sure to witness some important developments that will take the market to the newer heights. Based on various research reports, we would shed light on the top 5 cryptocurrency trends that you are more likely to witness in the year 2020.
Mining cryptocurrency awards the miners with a specific number of crypto assets. It has already been propounded that after a few years the reward will reduce to half. Thus the next halving of reward is due in 2020 and it will reduce the reward from 12.5 to 6.25. It may look like a terrible thing for the crypto miners but it is not the first time that the rewards will be reduced. It has already happened twice in 2012 and 2016, and the market witnessed some interesting price action during that time.
In 2012 halving, the price of bitcoin shot up from $10 to $100 and in 2016 the price of bitcoin jumped from $400 to around $800 after the halving of rewards. The demand for cryptocurrency also plays a major role in driving the price level. Therefore, there are arguments for and against the price movement of crypto assets. Volatility is surely expected but with the halving of price, it will somehow stabilize the supply.
Facebook is considering launching its asset-backed stablecoin named Libra by the summer of 2020. There are various uncertainties attached to this new stablecoin as it inhibits a lot of regulatory hurdles. Libra has backing from Uber, Vodafone, Coinbase and even from the members of Kushner family. Owing to the globalized presence of Facebook users, the adoption of Libra through its associated Calibra wallet will surely create a disruption among social media users. For the US alone, Libra accounts for nearly 170 million of the potential user base.
There has been a lot of hype and discussion around Libra this year which got the people to seriously think of cryptocurrency. Libra is likely to create a massive adoption in the next year and it is estimated that the same suit will be followed by many other tech companies as stablecoins are highly important to the present economic market.
The spectators propound that there is a missing link in fixing all the pieces of the cryptocurrency puzzle. For this, scrutiny from the government is necessary. The increased interest of the federal agencies because cryptocurrency is not only conversant with the society but is impacting the overall core elements of the technology. The IRS (Internal Revenue Service) is also considering tax imposition in the cryptocurrency transactions.
It has been reported that the cryptocurrency industry will work closely with the regional and national governments to pay close heed to the digital currencies. According to the reports, the tax rules are not against crypto and they are actively progressing in countries like Singapore, Switzerland and others. Crypto enthusiasts are waiting for more clear guidelines especially on the staking and airdrops features that are supposed to come next year.
The cryptocurrency market is loaded with the crypto assets. The number of cryptocurrencies increased to approximately 2300 in the year 2019 despite its flattened prices in 2018. This overall picture has positively impacted the cryptocurrency exchange development company. According to Coin Market Cap, less than one-third of the coins trade the volume of $100,000 per day. Meanwhile, over a third coins have a value of less than a tenth of a penny.
The growing interest in the cryptocurrency is sure to increase the volume. The increased security, adherence to regulatory legislation and transparency are contributing to the need to develop newer coins. The market seems to be at the saturation point and it is unlikely to see a huge development of new coins in 2020.
The usage of DLT technology in the world of cryptocurrency has revolutionized the way transactions are initiated. In the words of Alex Lindenmeyer, the co-founder of cryptocurrency tracking and tax software company, “there is a need for a crypto ecosystem which is backed by tracking, management and taxes all in one”. Further experts have predicted that in the coming years this technology will prove as a powerful instrument in bringing immutability and transparency in the systems for improving businesses, conducting fair trades, non-discriminatory distribution of wealth, democratizing the global ecosystem, and many more. While many FinTech companies are considering integrating cryptocurrency into their processes, we are sure to witness many more cases of crypto and FinTech integration.
The year 2020 seems to be favorable for the cryptocurrency market and crypto exchanges. If you are considering tapping into the billion-dollar crypto market, we can help. Being an experienced cryptocurrency exchange development company, we are well-versed with the ins and outs of building an exchange that traders look for. We can assist you from the very starting that is from choosing the technology till the final promotion of your crypto exchange. However, we also offer a feature-rich white label crypto exchange to expedite deployment and reduce the development cost. View a free demo of our white label exchange.
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