2020 for the crypto market is a time of a quality breakout, or at least this is what the users and market participants are expecting. Below, we will discuss some of the expected events and changes.
- What will happen to the Bitcoin (BTC)?
- Libra: how will it settle?
- Ethereum (ETH): the stake on the Proof of Stake
- Eyes on China
- Ripple (XRP): stakes on banks
What will happen to the Bitcoin (BTC)?
The year 2020 will be crucial for the leading cryptocurrency. In May, the reward for mining will be decreased by 50% at once, amounting to 6.25 BTC instead of 12.5 BTC now per mined verified block. This event can change the whole picture of mining.
In 202, the BTC will go on spreading among users. Its market share will amount to 60-70%, which will make it stronger and more expensive. In our case, this is a positive factor for the BTC price.
Another supporting driver of the BTC price is the extension of the Lightning Network system. This system optimizes the decentralization process, letting introduce it in applications and the principles of payment execution. Automatically, this will free the Bitcoin from the long-time market claim that the BTC has no more room for development.
Forecasting the BTC price for a year is useless: the market is too volatile and prone to fluctuations. However, it must remain between $7,500-$15,000.
Libra: how will it settle?
In 2019, Facebook caused a lot of worries to the crypto world, but its crypto project was not launched after all. No one is sure that in 2020 Libra will appear on the crypto market, because Facebook is aiming, in fact, at rivalry with the US dollar. The US government got scared and hindered the launching process.
In the first half of 2020, Facebook will discuss the future of Libra with the regulator. The project will function if the government allows it. The potential of the project is huge, so the caution of the politicians and the greed of the users is understandable. Libra is a new phenomenon on the crypto market, and its appearance may be earthshaking.
Ethereum (ETH): the stake on the Proof of Stake
In 2019, the interest to the ETH was quite blurry, but what the company is doing in terms of technology gives it long-term support. First of all, they work actively with smart contracts. They lie at the base of applied projects and can digitize both trades and documents well. In 2020, the price for the ETH may grow in reply to the growth of demand for the service and its possibilities. This is strong support for the cryptocurrency.
What is more, the ETH has hope for some support after introducing the Proof of Stake technology. The technology allows for receiving a passive income for keeping the coins in the wallet, and this opportunity is supposed to be taken well by the users.
Apart from this, for 202, the Ethereum is planning several updates aimed at enhancing the functioning of the network. The ETH price is unlikely to react to them immediately, but the updates will provide long-term support.
Eyes on China
In 2020, the People\s Bank of China is planning to test the digital yuan. The work in this direction has been on quite long but the developers got stuck in some legal issues. It is known that for the start there will be test launches in several Chinese cities, where it will be suggested as the main payment solution. If everything goes smoothly, in the second half of the year the authorities will be ready to launch a global sovereign digital currency.
Here, we should pay attention to how China is going to regulate circulation and storing of the digital currency. No doubt that the transactions will be tracked; what provokes interest is the safety parameters of the network and the protection from technological faults. What China will use in this launch is likely to be used later by the whole world.
The Chinese actions on the crypto market can breathe some fresh air into it. The complete change of opinion – from a complete rejection of cryptocurrencies to the readiness to launch it on the national level – is a good chance for the market.
Ripple (XRP): stakes on banks
The XRP, as well as the ETH, does not react much to what the company itself does, reaching the new heights of blockchain and decentralization as well as propelling crypto into the world of fiat money. In 2019, the XRP ecosystem did a lot for integration with the bank infrastructure. The strong side of the company is the ability to cheapen the transactions, increasing the speed and keeping the safety level high. In fact, the only way for Ripple to develop is technology: the tokens are not mined because initially there was issued 100 billion tokens and issuing more is not expected.
In 2020, Ripple will keep on doing what it can do well. First of all, it will be interesting to have a look at the process of merging several Ripple partners to make transactions with Chinese cards easier. This is the work of such giants as American Express and Lian Lian Group, but Ripple is already integrated with their system, so any process here will do good to the XRP. Very often, the XRP behaves in trading differently to other altcoins, mostly due to the lack of the speculative part. However, it may be called its strong side as its fundamental situation is good in the long run.
Any information contained herein is based on the authors' particular opinion. This article shall not be treated as trading advice or call to action. The author of the article or RoboForex company shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
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